2025 House Bill 4180 / Public Act 17

Sales tax: exemptions; motor fuel sales; exempt.

An act to amend 1933 PA 167, entitled “An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,” by amending sections 6a and 25 (MCL 205.56a and 205.75), section 6a as amended by 2015 PA 264 and section 25 as amended by 2023 PA 20, and by adding section 4gg.

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

Received in the Senate

April 15, 2025

Referred to the Committee on Appropriations

Oct. 2, 2025

Discharged from committee

Referred to the Committee of the Whole

Reported with substitute S-3

Substitute S-3 concurred in by voice vote

Oct. 3, 2025

Passed in the Senate 30 to 6 (details)

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Received in the House

Oct. 3, 2025

Substitute S-3 concurred in 102 to 7 (details)

Signed by Gov. Gretchen Whitmer

Oct. 7, 2025