LANSING, Mich. (Michigan News Source) – Drivers will wake up to changes at Michigan gas pumps on New Year’s Day.

January 1 marks the day Michiganders will see the 6% sales tax on gasoline and diesel fuel disappear only to be replaced with a higher per-gallon fuel tax to fund road and bridge projects. The state fuel tax rate will increase from 31 cents per gallon to 52 cents per gallon. However, state officials say the elimination of the sales tax should only amount to about a one-cent increase per gallon when Michigan drivers fill up.

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Under the new state budget signed in October, the sales tax on gas used to flow into the Michigan’s general fund. Now, all money collected under the new fuel tax will be earmarked specifically for transportation funding. State officials say the revenue shift is designed to keep Michigan’s roads and bridges on track for the long haul.