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.

Pending Committee action.

03/06/2025 Introduced in House. Read first time and referred to House Committee on Transportation and Infrastructure.