Michigan Lawmakers Vote to Eliminate Gas Sales Tax

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The Michigan House voted today to allow the governor to lift the six percent state sales tax on gasoline during an fuel emergency.

The House voted 106-0 to send the bill to the Senate.

The bill would allow the governor to issue an executive order eliminating the tax for a specific period of time, effectively dropping the price if it gets too high.

Gasoline prices already were at record highs in Michigan last week when they spiked even higher in the wake of the destruction caused by Hurricane Katrina. The statewide average for regular unleaded gasoline was nearly $2.70 a gallon.

A spokeswoman for Governor Granholm said she is not thinking about lifting the sales tax on gas now, but likes the House bill.