To increase the current gasoline and diesel fuel tax to 34 cents per gallon by Jan. 1, 2017, an increase of 15 cents and 19 cents, respectively. The increase would come in three steps, and the tax would then be indexed to inflation. When combined with the 6 percent sales this would give Michigan the second highest gas tax
in the nation, and one 15 cents higher than nearby states. The bill would also tax natural gas and other “alternative fuels” burned by vehicles at an equivalent rate.