Raises the tax rate for gas and diesel fuel from 26.3 to 51 cents per gallon beginning Oct. 1, 2025.

Amends the Michigan Motor Fuel Tax Act by increasing the tax rates on gasoline and diesel fuel. Currently, the tax rate for both gasoline and diesel is 26.3 cents per gallon through September 30, 2025. Starting October 1, 2025, the bill raises the tax rate to 51 cents per gallon for both fuel types. Modifies the annual inflation adjustment mechanism, which previously allowed for a maximum 5% increase each January 1st. For the 2026 rate calculation specifically, the bill instructs the department to use the average tax rate from 2025 as the base. Requires the department to publish notices of tax rate changes at least 30 days before they take effect, with a specific requirement to publish the October 1, 2025 rate increase notice by September 1, 2025. The bill will only become law if seven related House Bills (HB 4180-4187) are also enacted. The bill's underlying intent is to ensure that motor vehicle users pay for the privilege of using public roads and highways, with suppliers responsible for collecting and remitting the tax at the point of fuel removal.

Pending Committee action.

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