MI HB 4181

Author

Steve Frisbie
N-893 House Office Building P.O. Box 30014
Lansing, MI 48909
517-373-2616
SteveFrisbie@house.mi.gov
Author Detail Link

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Bill Text

Category

Fuel Tax

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State

MI

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Summary

Provides that a motor carrier is entitled to a credit for 6% of the price of motor fuel purchased before October 1, 2025 and used in a qualified commercial motor vehicle. Credit must be claimed on the returns filed under the international fuel tax agreement.

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Issue

Amends the Streamlined Sales and Use Tax Revenue Equalization Act, primarily focusing on modifying definitions and tax provisions related to motor fuel for interstate motor carriers. Updates definitions for terms like alternative fuel, diesel fuel, and gasoline by removing specific references to the 2000 PA 403 motor fuel tax act, and adds a new definition for "motor fuel tax act" to clarify legal references. Introduces a temporary tax provision that applies through September 30, 2025, levying a specific tax on interstate motor carriers using motor fuel or alternative fuel in qualified commercial motor vehicles. The tax rate is set at 6% of the average retail price of fuel, rounded down to the nearest 1/10 of a cent, and will be collected under the international fuel tax agreement. Interstate motor carriers are entitled to a credit for 6% of the fuel price purchased in the state before October 1, 2025. The bill also provides flexibility in determining alternative fuel pricing when statewide averages are not readily available. Only takes effect if House bills 4180-4187 are also enacted into law, creating a comprehensive package of legislative changes related to fuel taxation.

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Notes

Pending Committee action.

History

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