“Let Them Eat Credits”: Whitmer’s Senior Tax Break After Years of Higher Taxes and Fees

Governor Gretchen Whitmer is promoting a new property tax credit for seniors as part of her upcoming budget, even as Michigan residents are already paying the cumulative effect of multiple tax and fee increases enacted during her administration.Senior Property Tax CreditThe proposal would provide homeowners age 65 and older with a property tax credit worth up to 10 percent of taxes paid. State estimates place the average benefit at about $345 per household per year, or roughly $28 per month. The administration says the credit is intended to help seniors on fixed incomes manage rising costs.Gas Tax Increase and RestructuringMichigan’s fuel tax structure was overhauled under a road funding package signed by Whitmer. The state eliminated the 6 percent sales tax on gasoline and replaced it with a higher, inflation-indexed excise tax. As of January 1, 2026, the gas tax rose to 52.4 cents per gallon, up from 31 cents, shifting road funding directly onto per-gallon fuel purchases statewide.Electric Vehicle and Hybrid Registration FeesThe higher gas tax automatically triggered increases in electric and plug-in hybrid vehicle registration fees under a 2015 law that ties EV fees to gas tax levels above 19 cents. In 2026, annual EV registration fees rose to $267 from $160, while plug-in hybrid fees increased to $113 from $60. The increase places Michigan at the top nationally for EV registration costs.Recreational Marijuana Retail TaxesRecreational marijuana sales continue to carry a 10 percent excise tax on top of the state’s 6 percent sales tax, a structure maintained under Whitmer’s administration. The combined tax is paid by consumers at the register and contributes to higher overall prices for recreational marijuana products.Wholesale Marijuana TaxBeginning January 1, 2026, Michigan added a new 24 percent wholesale tax on recreational marijuana transfers. The tax applies before products reach retailers and is directed toward road and neighborhood infrastructure funds. State projections estimate the tax will generate hundreds of millions of dollars annually.Medical Marijuana CostsMedical marijuana patients remain exempt from the recreational excise tax but still pay the 6 percent sales tax. Regulatory fees, licensing costs, and compliance requirements for growers and processors have increased over time, contributing to higher prices passed on to patients during Whitmer’s tenure.Other Fees and Inflation-Indexed CostsWhitmer has signed budgets that expanded or maintained inflation-indexed taxes and fees, allowing costs tied to fuel, vehicle registration, and state services to rise automatically over time without new legislative votes. These increases affect transportation, consumer goods, and everyday expenses across the state.Critics argue that the senior property tax credit offers a narrow, visible benefit while the broader tax structure continues to collect significantly more through fuel taxes, vehicle fees, and consumption-based taxes. In that framing, the credit is seen not as a rollback of tax policy, but as limited relief layered onto a system of higher, long-term costs borne by the wider public.