Bill > HB4182

This bill establishes a use tax exemption for eligible fuel beginning January 1, 2026, with several specific exclusions. The bill defines "eligible fuel" as motor fuel, alternative fuel, and leaded racing fuel, but specifically excludes certain types of fuel such as aviation fuel on which a privilege tax has been paid, motor fuel sold for aviation purposes, fuel used for residential or commercial heating and cooling, and some types of liquefied petroleum gas. The bill clarifies that motor fuel, alternative fuel, and leaded racing fuel are exempt from use tax, but creates detailed restrictions around when and how these exemptions apply, particularly for aviation and heating-related fuels. The bill also includes technical definitions for various fuel types, referencing existing Michigan motor fuel and aeronautics laws, and establishes that this exemption will only take effect if several related legislative bills are also enacted. Additionally, the bill specifies that the use tax collections will continue to be distributed to various funds, including the state school aid fund and local government funds, ensuring that the fuel tax exemption does not disrupt existing revenue allocation mechanisms.

Budget and Finance, Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4182