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MI HB4181

Bill

Official Source

Status

Passed

10/8/2025

Primary Sponsor

Steve Frisbie

Click for details

Origin

House of Representatives

103rd Legislature

AI Summary

  • Eliminates the 6% sales/use tax on motor fuel and alternative fuel for interstate motor carriers operating qualified commercial motor vehicles, effective after December 31, 2025

  • Interstate motor carriers may claim a credit for 6% of the price of motor fuel or alternative fuel purchased in Michigan before January 1, 2026 and used in qualified commercial vehicles

  • The tax rate through December 31, 2025 is calculated as 6% of the statewide average retail price per gallon of diesel or gasoline, rounded down to the nearest 1/10 of a cent and certified quarterly by the Department of Treasury

  • Tax collection and credits are administered through the International Fuel Tax Agreement (IFTA)

  • The act took immediate effect on October 7, 2025, contingent on enactment of Senate Bill No. 578, House Bill No. 4180, House Bill No. 4182, and House Bill No. 4183

Legislative Description

Streamline sales and use tax: exemptions; tax on motor fuel; exclude. Amends secs. 3 & 5 of 2004 PA 175 (MCL 205.173 & 205.175). TIE BAR WITH: HB 4180'25, HB 4182'25, HB 4183'25, SB 0578'25

Transportation: motor fuel tax

Last Action

Assigned Pa 18'25 With Immediate Effect

10/8/2025

Committee Referrals

Appropriations4/15/2025
Transportation And Infrastructure3/6/2025

Full Bill Text

No bill text available