Whitmer Indicates She Will Veto Bill Suspending State's Gas Tax

MICHIGAN — Michigan Governor Gretchen Whitmer indicated Friday that she will veto a Republican led measure that would suspend the state's 27-cent gas tax for six months amid high prices at the pump.

Whitmer told reporters during a Lansing news conference for an unrelated bill signing that she's "all in" on trying to get Michiganders relief. However, she said legislation should focus on helping people who "are struggling to keep their head above water," and cited the $400-per-vehicle auto insurance refunds her administration and other state officials worked to secure.

Whitmer also mentioned her proposals to gradually eliminate taxation of retirement income and to increase the state's earned income tax credit for low and moderate income workers.

When pressed by reporters on whether she supported the Republican-sponsored bill, which the Senate is expected to approve next week, Whitmer replied temporarily suspending the state's gas tax "won't have lived up to any of those things that I just said, so you can draw your own conclusions."

Despite signaling she won't support a suspension of the state's gas tax, Whitmer was one of several governors that urged federal officials to suspend the federal gas tax as Russia's war in Ukraine intensifies. The war and retaliatory measures by the U.S. and other world allies are causing prices at the pumps to skyrocket, federal officials said.

The federal measure would replace lost fuel tax dollars with general tax dollars to the accounts that fund state highway and public transit programs. Fuel taxes are generally used toward fixing state roads, which could be a cause for concern in hesitancy to support suspending the state's gas tax.

However, state Republicans said they are looking to replace lost state gas tax dollars in a similar way the federal measure proposes, in part by highlighting the state's $7 billion budget surplus. But that plan was not in the bill the House passed Wednesday. The Republican led bill is expected to result in a revenue loss of about $725 million.

Michigan's average price per-gallon of gas remained steady over the past few days at $4.25. Gas prices around metro Detroit are among the highest in the state with average relatively consistent with the state at $4.26.

But federal officials warned those prices may climb higher, possibly to $5 per-gallon, as the Russian-Ukraine conflict worsens. President Biden recently announced a ban on Russian oil, a move he said would cripple Russia's ability to conduct its war in Ukraine. He also called for suspending normal trade relations with Russia, and will ban imports of vodka and seafood.

The Associated Press contributed reporting.