MI HB4180

Exempts eligible motor fuel, alternative fuel, and leaded racing fuel from Michigan sales tax beginning January 1, 2026

Excludes from the exemption aviation fuel subject to aeronautics taxes and fuel used for residential, commercial, or industrial heating, cooling, or ventilation purposes

Terminates the fuel prepayment tax system on December 31, 2025, which currently requires purchasers to prepay 6% sales tax at refiners, pipeline terminals, or marine terminals

Requires the state to deposit into the state school aid fund an amount equal to all revenue lost due to the motor fuel sales tax exemption

Takes effect only if Senate Bill 578, House Bill 4181, House Bill 4182, and House Bill 4183 are also enacted into law