As part of the road funding solution that was signed into law in late 2015, registration fees and gas taxes will automatically increase starting the first of the year. The $1.2 billion dollar annual increase into Michigan’s transportation system relies on half of the new revenue coming from traditional user fees, like the gas tax and registration fees.
Registration fees will increase by 20% across the board for passenger vehicles and commercial vehicles. For those of you who are able to renew your registration fees before the end of the year, please remember that the Secretary of State offices will be closed December 30th and 31st. Both gas taxes and diesel taxes will increase on January 1, 2017, as well. Diesel motor fuel tax will increase from 15 cents per gallon and the tax on gasoline motor fuel from 19 cents per gallon, to a single rate of 26.3 cents per gallon on all motor fuel effective January 1, 2017.
These increases are the beginning of the five-year phased-in road funding package that was signed by Governor Snyder at MITA’s headquarters in November of 2015, raising over $1.2 billion annually and increases by the rate of inflation by total implementation of the phase in.
If you have any further questions, please feel free to contact MITA Executive Vice President Mike Nystrom at mikenystrom@mi-ita.com or MITA Vice President of Government Affairs Lance Binoniemi at lancebinoniemi@mi-ita.com. They can both be reached at the MITA office by calling 517-347-8336.
