Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that exempts gas and airline fuel from sales tax in Michigan.

Highlights:

• Specifies that after January 1, 2026, the sale of the following fuels is exempt from the general sales tax (Sec. 4gg): 

• Motor fuel; 

• Alternative fuel; and

• Leaded racing fuel. 

• Specifies that fuel eligible for exemption from the general sales 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 amend and pass a bill that exempts gas and airline fuel from sales tax in Michigan.

Highlights:

• Specifies that after January 1, 2026, the sale of the following fuels is exempt from the general sales tax (Sec. 4gg): 

• Motor fuel; 

• Alternative fuel; and

• Leaded racing fuel. 

• Specifies that fuel eligible for exemption from the general sales 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 gas and airline fuel from sales tax in Michigan.

Highlights:

• Specifies that after January 1, 2026, the sale of the following fuels is exempt from the general sales tax (Sec. 4gg): 

• Motor fuel; 

• Alternative fuel; and

• Leaded racing fuel. 

• Specifies that fuel eligible for exemption from the general sales 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