MichiganHB 41802025-2026 Regular SessionHouseWALLET

Sales tax: exemptions; motor fuel sales; exempt. Amends secs. 6a & 25 of 1933 PA 167 (MCL 205.56a & 205.75) & adds sec. 4gg. TIE BAR WITH: HB 4181'25, HB 4182'25, HB 4183'25, SB 0578'25Last Action: assigned PA 17'25 with immediate effect

Sponsored By: Donni Steele (Republican)

Signed by Governor

Sales tax: exemptionsTransportation: motor fuel tax

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Fuel buyers pay less sales tax

Beginning January 1, 2026, Michigan exempts eligible motor fuel, alternative fuel, and leaded racing fuel from state sales tax. The break excludes aviation fuel covered by the listed aircraft-tax rules or identified as aviation fuel on shipping documents. It also excludes fuel sold for building heating, cooling, or ventilation, including fuel for home appliances. Liquefied petroleum gas is excluded unless its use or intended use qualifies under the Motor Fuel Tax Act. Fuel sales-tax prepayments apply only through the tax period ending December 31, 2025.

School funding protected from fuel tax breaks

Michigan must replace State School Aid Fund revenue lost because of the eligible-fuel sales tax exemption and matching use tax exemption. The required deposit equals the fund's lost revenue from both exemptions. This protects school aid funding without requiring households to make a payment. No dollar amount is specified.

Sponsors & Cosponsors

Sponsor

  • Donni Steele

    Republican • House

Cosponsors

  • Alicia St. Germaine

    Republican • House

  • Angela Rigas

    Republican • House

  • Ann Bollin

    Republican • House

  • Brian BeGole

    Republican • House

  • Cameron Cavitt

    Republican • House

  • Curtis VanderWall

    Republican • House

  • David Martin

    Republican • House

  • David Prestin

    Republican • House

  • Gina Johnsen

    Republican • House

  • Gregory Alexander

    Republican • House

  • Gregory Markkanen

    Republican • House

  • Jamie Thompson

    Republican • House

  • Jason Woolford

    Republican • House

  • Jay DeBoyer

    Republican • House

  • John Roth

    Republican • House

  • Ken Borton

    Republican • House

  • Luke Meerman

    Republican • House

  • Mark Tisdel

    Republican • House

  • Matt Bierlein

    Republican • House

  • Mike Hoadley

    Republican • House

  • Nancy Jenkins-Arno

    Republican • House

  • Pat Outman

    Republican • House

  • Sarah Lightner

    Republican • House

  • Steve Frisbie

    Republican • House

  • Thomas Kuhn

    Republican • House

  • Tim Kelly

    Republican • House

  • Tom Kunse

    Republican • House

  • William Bruck

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 197 • No: 56

Senate vote • 10/3/2025

PASSED; GIVEN IMMEDIATE EFFECT

Yes: 30 • No: 6 • Other: 1

House vote • 10/3/2025

roll call

Yes: 102 • No: 7 • Other: 1

House vote • 3/19/2025

passed; given immediate effect

Yes: 65 • No: 43 • Other: 2

Actions Timeline

  1. assigned PA 17'25 with immediate effect

    10/8/2025House
  2. filed with Secretary of State 10/07/2025 01:20 PM

    10/8/2025House
  3. approved by the Governor 10/07/2025 12:04 PM

    10/8/2025House
  4. presented to the Governor 10/06/2025 03:08 PM

    10/7/2025House
  5. bill ordered enrolled

    10/3/2025House
  6. title amendment agreed to

    10/3/2025House
  7. roll call Roll Call #249 Yeas 102 Nays 7 Excused 0 Not Voting 1

    10/3/2025House
  8. Senate substitute (S-3) concurred in

    10/3/2025House
  9. rule suspended

    10/3/2025House
  10. laid over one day under the rules

    10/3/2025House
  11. returned from Senate with substitute (S-3) with immediate effect and title amendment

    10/3/2025House
  12. RETURNED TO HOUSE

    10/3/2025Senate
  13. TITLE AMENDED

    10/3/2025Senate
  14. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 269 YEAS 30 NAYS 6 EXCUSED 1 NOT VOTING 0

    10/3/2025Senate
  15. PLACED ON IMMEDIATE PASSAGE

    10/3/2025Senate
  16. RULES SUSPENDED

    10/3/2025Senate
  17. PLACED ON ORDER OF THIRD READING WITH SUBSTITUTE (S-3)

    10/2/2025Senate
  18. SUBSTITUTE (S-3) CONCURRED IN

    10/2/2025Senate
  19. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-3)

    10/2/2025Senate
  20. RULES SUSPENDED FOR IMMEDIATE CONSIDERATION

    10/2/2025Senate
  21. PLACED ON ORDER OF GENERAL ORDERS

    10/2/2025Senate
  22. DISCHARGE COMMITTEE APPROVED

    10/2/2025Senate
  23. REFERRED TO COMMITTEE ON APPROPRIATIONS

    4/15/2025Senate
  24. PASSED BY HOUSE WITH IMMEDIATE EFFECT

    4/15/2025House
  25. transmitted

    3/19/2025House

Bill Text

  • Public Act

    10/7/2025

  • As Passed by the House

    10/3/2025

  • As Passed by the Senate

    10/3/2025

  • House Concurred

    10/3/2025

  • Introduced

    3/6/2025

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