Exempts sales tax on motor fuel beginning October 1, 2025.

Proposes to exempt sales tax on aviation fuel and motor fuel beginning October 1, 2025. Creates two new sections in the General Sales Tax Act that will eliminate sales tax on aviation fuel (defined as fuel under the state's aeronautics code) and on "eligible fuel" (defined as any fuel subject to the motor fuel tax act). Makes several technical amendments to existing law regarding fuel tax reporting and prepayment requirements, primarily adjusting language and timeframes to accommodate the new tax exemptions. The bill is tied to the passage of seven other related House Bills, meaning it will only take effect if all of those companion bills are also enacted into law. These changes are part of a broader legislative package that modifies how fuel-related taxes are collected and applied in Michigan, with the ultimate goal of reducing tax burdens on fuel purchases for aviation and motor vehicles.

Effective immediately.

03/06/2025 Introduced in House. Read first time and referred to House Committee on Transportation and Infrastructure.
03/18/2025 Reported with recommendation with substitute by the House Committee on Transportation and Infrastructure.
03/18/2025 Referred to second reading in the House.
03/18/2025 Read second time in House.
03/18/2025 House substitute adopted.
03/18/2025 Placed on third reading in the House.
03/19/2025 Read third time. Passed House. Transmitted to Senate.
04/15/2025 Referred to Senate Committee on Appropriations.
10/02/2025 Discharge Committee approved.
10/02/2025 Placed on order of General Orders.
10/02/2025 Rules suspended for immediate consideration.
10/02/2025 Reported by Committee of the Whole favorably with substitute.
10/02/2025 Substitute concurred in.
10/02/2025 Placed on order of third reading with substitute.
10/02/2025 Rules suspended.
10/02/2025 Placed on immediate passage.
10/03/2025 Passed Senate. Given immediate effect.
10/03/2025 Title amended in Senate.
10/03/2025 Returned to House.
10/03/2025 Returned to House from Senate with substitute with immediate effect and title amendment
10/03/2025 Laid over one day under the rules.
10/03/2025 Rule suspended.
10/03/2025 House concurred in Senate substitute.
10/03/2025 Title amendment agreed to. Bill ordered enrolled.
10/07/2025 Presented to the Governor.
10/08/2025 Approved by the Governor.