MichiganHB 41822025-2026 Regular SessionHouseWALLET

Use tax: exemptions; motor fuel sales; exempt. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 4gg. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4183'25, SB 0578'25Last Action: assigned PA 19'25 with immediate effect

Sponsored By: Bradley Slagh (Republican)

Became Law

Use tax: exemptions

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Use tax ends on most motor fuels

Beginning January 1, 2026, you do not pay Michigan use tax on eligible fuel you store or use. Eligible fuel includes motor fuel, alternative fuel, and leaded racing fuel. The break does not cover aviation fuels or fuel sold as aviation fuel. It also does not cover fuel sold for heating, cooling, or ventilation in homes or buildings, or most propane unless used as motor vehicle fuel. This act is now in effect; the exemption starts on January 1, 2026.

School and local funds protected

The state replaces any school aid money lost because of the new fuel tax exemption. Treasury sets the exact amount and deposits it into the State School Aid Fund. Each year starting with the fiscal year ending September 30, 2024, the state deposits $75 million into the Local Government Reimbursement Fund. Local community stabilization share money is not state money; it goes straight to the Local Community Stabilization Authority and is spent only as that law allows.

Aviation fuel tax funds airports

Each quarter, the state sends the additional 2% use tax on aviation fuel collected two quarters earlier to aviation funds. 35% goes to the State Aeronautics Fund and 65% to the Qualified Airport Fund. The money can be used only for aeronautics purposes allowed by law. The state reconciles the totals each year and adjusts future payments; each qualified airport gets a yearly report.

Sponsors & Cosponsors

Sponsor

  • Bradley Slagh

    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

  • Donni Steele

    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: 31 • No: 5 • Other: 1

House vote 10/3/2025

roll call

Yes: 101 • No: 8 • Other: 1

House vote 3/19/2025

passed; given immediate effect

Yes: 65 • No: 43 • Other: 2

Actions Timeline

  1. assigned PA 19'25 with immediate effect

    10/8/2025House
  2. filed with Secretary of State 10/07/2025 01:24 PM

    10/8/2025House
  3. approved by the Governor 10/07/2025 12:08 PM

    10/8/2025House
  4. presented to the Governor 10/06/2025 03:12 PM

    10/7/2025House
  5. bill ordered enrolled

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

    10/3/2025House
  7. roll call Roll Call #251 Yeas 101 Nays 8 Excused 0 Not Voting 1

    10/3/2025House
  8. Senate substitute (S-2) concurred in

    10/3/2025
  9. rule suspended

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

    10/3/2025House
  11. returned from Senate with substitute (S-2) with immediate effect and title amendment

    10/3/2025House
  12. RETURNED TO HOUSE

    10/3/2025House
  13. TITLE AMENDED

    10/3/2025Senate
  14. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 271 YEAS 31 NAYS 5 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-2)

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

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

    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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