Signed by Governor Gretchen Whitmer

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that increases the motor fuel tax in Michigan.

Highlights:

• Expands the tax on motor fuel to include fuel that is removed from the state (Sec. 8).

• Establishes a new rate for the motor fuel tax for calendar year 2026 of 51 cents multiplied by 1 plus the lesser of 0.05 or the inflation rate (Sec. 8).

• Requires the Department of Treasury to determine a rate on motor fuel for calendar years beginning with 2027 by multiplying the cents-per-gallon rate effective during the previous year by 1 plus the lesser of 0.05 or the inflation rate (Sec. 8).

• Specifies that rates for the motor fuel tax are rounded up to the nearest 1/10 of a cent (Sec. 8).

• Specifies that the tax levied under this Act is imposed on the following (Sec. 8):

• Motor fuel in excess of 3,000 gallons stored by a user at the end of 2025; and

• All nonexempt motor fuel in excess of 3,000 gallons held by a person outside of the bulk transfer/terminal system at the end of 2025.

• Requires individuals subject to the motor fuel tax to take an inventory of the number of gallons subject to the tax and report that number to the Department (Sec. 8).

• Specifies that this Act does not take effect unless SB 578, and HBs 4180-4182 are enacted into law (Sec. 1).

Full Bill Text
Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the motor fuel tax in Michigan.

Highlights:

• Expands the tax on motor fuel to include fuel that is removed from the state (Sec. 8).

• Establishes a new rate for the motor fuel tax for calendar year 2026 of 51 cents multiplied by 1 plus the lesser of 0.05 or the inflation rate (Sec. 8).

• Requires the Department of Treasury to determine a rate on motor fuel for calendar years beginning with 2027 by multiplying the cents-per-gallon rate effective during the previous year by 1 plus the lesser of 0.05 or the inflation rate (Sec. 8).

• Specifies that rates for the motor fuel tax are rounded up to the nearest 1/10 of a cent (Sec. 8).

• Specifies that the tax levied under this Act is imposed on the following (Sec. 8):

• Motor fuel in excess of 3,000 gallons stored by a user at the end of 2025; and

• All nonexempt motor fuel in excess of 3,000 gallons held by a person outside of the bulk transfer/terminal system at the end of 2025.

• Requires individuals subject to the motor fuel tax to take an inventory of the number of gallons subject to the tax and report that number to the Department (Sec. 8).

• Specifies that this Act does not take effect unless SB 578, and HBs 4180-4182 are enacted into law (Sec. 1).

Full Bill Text
Full Bill Text

Full Bill Text