HB 5583 Summary

• Exempts aviation fuel from Michigan use tax in a phased approach: 100% exemption from the 2% additional rate (Oct. 1, 2020 - Sept. 30, 2021), 50% exemption from 4% base rate plus 100% from 2% rate (Oct. 1, 2021 - Sept. 30, 2022), and full 100% exemption from all use tax starting Oct. 1, 2022.

• Exempts eligible fuel (defined as any fuel subject to Michigan's motor fuel tax) under the same phased exemption schedule as aviation fuel.

• Modifies reporting requirements for aviation fuel to only apply through Sept. 30, 2020, eliminating the ongoing informational reporting requirement after that date.

• Redirects tax collections from aviation fuel use tax (35% to state aeronautics fund, 65% to qualified airport fund) only through Sept. 30, 2020.

• Ties enactment to passage of HB 5582, HB 5584, HB 5585, and HB 5586, making this bill contingent on those measures being enacted into law.