Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to amend and pass a bill that would exempt the storage, use, or consumption of motor fuel, alternative fuel, and leaded racing fuel from use tax in Michigan.

Highlights:

• Specifies that beginning January 1, 2026, the storage, use, or consumption of eligible fuel is exempt from use tax (Sec. 4gg).

• Defines “eligible fuel” as any of the following (Sec. 4gg): 

• Motor fuel; 

• Alternative fuel; or

• Leaded racing fuel. 

• Specifies that fuel eligible for exemption from the use tax does not include the following (Sec. 4gg): 

• Motor fuel that is sold for use in aircraft if the purchaser paid the privilege tax imposed by Section 203 of the Aeronautics Code of the State of Michigan, and the purchaser is registered under Section 94 of the Motor Fuel Tax Act of 2000;

• Aviation fuel on which the privilege tax is due under Section 203 of the Aeronautics Code of the State of Michigan;

• Motor fuel on which the privilege tax is due under Section 203 of the Aeronautics Code of the State of Michigan has been paid, and that is identified on the shipping paper or invoice as aviation fuel and is sold as aviation fuel; 

• Motor fuel or alternative fuel sold for residential, commercial, or industrial use for heating, cooling, or ventilation purposes; or

• Liquified petroleum gas, unless it is used or for the use as those terms are defined in Section 151(j) of the Motor Fuel Tax Act of 2000. 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that exempts the storage, use, or consumption of motor fuel, alternative fuel, and leaded racing fuel from use tax.

Highlights:

• Specifies that beginning January 1, 2026, the storage, use, or consumption of eligible fuel is exempt from use tax (Sec. 4gg).

• Defines “eligible fuel” as any of the following (Sec. 4gg): 

• Motor fuel; 

• Alternative fuel; or

• Leaded racing fuel. 

• Specifies that fuel eligible for exemption from the use tax does not include the following (Sec. 4gg): 

• Motor fuel that is sold for use in aircraft if the purchaser paid the privilege tax imposed by Section 203 of the Aeronautics Code of the State of Michigan, and the purchaser is registered under Section 94 of the Motor Fuel Tax Act of 2000;

• Aviation fuel on which the privilege tax is due under Section 203 of the Aeronautics Code of the State of Michigan;

• Motor fuel on which the privilege tax is due under Section 203 of the Aeronautics Code of the State of Michigan has been paid, and that is identified on the shipping paper or invoice as aviation fuel and is sold as aviation fuel; 

• Motor fuel or alternative fuel sold for residential, commercial, or industrial use for heating, cooling, or ventilation purposes; or

• Liquified petroleum gas, unless it is used or for the use as those terms are defined in Section 151(j) of the Motor Fuel Tax Act of 2000. 

Full Bill Text