2025 House Bill 4181

Streamline sales and use tax: exemptions; tax on motor fuel; exclude.

A bill to amend 2004 PA 175, entitled “Streamlined sales and use tax revenue equalization act,” by amending sections 3 and 5 (MCL 205.173 and 205.175), section 3 as amended by 2015 PA 177 and section 5 as amended by 2022 PA 24.

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. Steve Frisbie (R-44) and 28 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Jamie Thompson (R-28), Brian BeGole (R-71), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Gina Johnsen (R-78), Cameron Cavitt (R-106), Jason Woolford (R-50), David Prestin (R-108), Alicia St. Germaine (R-62), Thomas Kuhn (R-57), 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), Donni Steele (R-54), William Bruck (R-30), Sarah Lightner (R-45), Tom Kunse (R-100), David Martin (R-68), Angela Rigas (R-79), 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