2025 House Bill 4180

Sales tax: exemptions; motor and aviation fuel sales; exempt.

A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending sections 6a and 6c (MCL 205.56a and 205.56c), section 6a as amended by 2015 PA 264 and section 6c as added by 2015 PA 262, and by adding sections 4gg and 4hh.

Mackinac Center Analysis

House Bills 4180-87 and House Bill 4230 replace the sales tax levied on fuel purchase with a 20 cent per-gallon tax on fuel. The bills eliminate the earmark from corporate income taxes to selective business subsidy programs and allocates the revenue from the tax to transportation funding. Overall, the package is a 73% increase in state spending on roads, allocating $3.2 billion more to this effort.

Introduced in the House

March 6, 2025

Introduced by Rep. Donni Steele (R-54) and 28 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Jamie Thompson (R-28), Brian BeGole (R-71), Gina Johnsen (R-78), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Cameron Cavitt (R-106), Jason Woolford (R-50), Thomas Kuhn (R-57), David Prestin (R-108), Alicia St. Germaine (R-62), Steve Frisbie (R-44), Jay DeBoyer (R-63), Greg Markkanen (R-110), Luke Meerman (R-89), John Roth (R-104), Nancy Jenkins-Arno (R-34), Ann Bollin (R-49), Gregory Alexander (R-98), William Bruck (R-30), Sarah Lightner (R-45), Angela Rigas (R-79), Tom Kunse (R-100), David Martin (R-68), Pat Outman (R-91) and Curtis VanderWall (R-102)

Referred to the Committee on Transportation and Infrastructure

March 18, 2025

Reported with substitute H-1

Substitute H-1 concurred in by voice vote

March 19, 2025

Passed in the House 65 to 43 (details)

Motion to give immediate effect by Rep. Bryan Posthumus (R-90)

The motion prevailed by voice vote