Bill > HB5435

This bill amends the Motor Fuel Tax Act to introduce a new tax on electric fuel for qualified commercial motor vehicles. The bill defines key terms such as "electric fuel" (electricity), "electric fuel commercial user" (a motor carrier consuming electric fuel to propel commercial vehicles), and "qualified commercial motor vehicle" (specific types of road vehicles used exclusively in the state). The tax will be calculated based on the miles driven on public roads, using a formula that divides the standard motor fuel tax rate by the fleet's average miles per gallon equivalent. Electric fuel commercial users must obtain a license by paying a $50 fee and submitting an application with business details. The tax applies only to commercial vehicles and is imposed in lieu of other state or local taxes on electric fuel usage. Importantly, the bill will only take effect if two related House Bills (HB 5434 and HB 5433) are also enacted into law. The legislation aims to ensure that electric commercial vehicles contribute to road funding in a manner similar to traditional fuel-powered commercial vehicles, addressing the evolving transportation landscape and maintaining transportation infrastructure funding.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5435