MichiganHB 41832025-2026 Regular SessionHouseWALLET

Transportation: motor fuel tax; motor fuel tax; increase and expand applicability. Amends sec. 8 of 2000 PA 403 (MCL 207.1008). TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, SB 0578'25Last Action: assigned PA 20'25 with immediate effect

Sponsored By: Tom Kunse (Republican)

Signed by Governor

Transportation: motor fuel tax

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Bill Overview

Analyzed Economic Effects

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

One-time tax on large fuel stocks

The law taxes covered Michigan fuel stocks above 3,000 gallons at the end of December 31, 2025. Only gallons above that threshold are taxed. Covered stocks include fuel stored by end users or held for sale, with the 2025 tax already paid or accrued. Fuel held for sale excludes dead storage. The tax also covers nonexempt fuel outside the bulk transfer and terminal system without that prior tax payment or accrual. Imported fuel must meet the law's lawful-import requirements. The charge per gallon equals the January 1, 2026 rate minus the January 1, 2025 rate. Covered holders must count and report taxable gallons and pay by February 20, 2026.

Higher fuel taxes for Michigan drivers

Beginning January 1, 2026, Michigan calculates its gasoline and diesel tax using a 51-cent-per-gallon base, plus an inflation adjustment. The adjustment uses the inflation rate or 5%, whichever is lower. Beginning January 1, 2027, the same formula applies each year to the previous year's rate. Rates round up to the nearest 0.1 cent, and the department must announce them at least 30 days ahead. Fuel buyers face higher per-gallon taxes, with total costs depending on how much fuel they buy.

Sponsors & Cosponsors

Sponsor

  • Tom Kunse

    Republican • House

Cosponsors

  • Angela Rigas

    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

  • Steve Frisbie

    Republican • House

  • Thomas Kuhn

    Republican • House

  • Tim Kelly

    Republican • House

  • William Bruck

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 184 • No: 69

Senate vote • 10/3/2025

PASSED; GIVEN IMMEDIATE EFFECT

Yes: 24 • No: 12 • Other: 1

House vote • 10/3/2025

roll call

Yes: 98 • No: 11 • Other: 1

House vote • 3/19/2025

passed; given immediate effect

Yes: 62 • No: 46 • Other: 2

Actions Timeline

  1. assigned PA 20'25 with immediate effect

    10/8/2025House
  2. filed with Secretary of State 10/07/2025 01:26 PM

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

    10/8/2025House
  4. presented to the Governor 10/06/2025 03:14 PM

    10/7/2025House
  5. bill ordered enrolled

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

    10/3/2025House
  7. roll call Roll Call #252 Yeas 98 Nays 11 Excused 0 Not Voting 1

    10/3/2025House
  8. Senate substitute (S-4) 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-4) with immediate effect and full title

    10/3/2025House
  12. RETURNED TO HOUSE

    10/3/2025Senate
  13. INSERTED FULL TITLE

    10/3/2025Senate
  14. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 272 YEAS 24 NAYS 12 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-4)

    10/2/2025Senate
  18. SUBSTITUTE (S-4) CONCURRED IN

    10/2/2025Senate
  19. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-4)

    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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