2025 House Bill 4182

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

A bill to amend 1937 PA 94, entitled “Use tax act,” by amending sections 6c and 21 (MCL 205.96c and 205.111), section 6c as added by 2015 PA 263 and section 21 as amended by 2023 PA 175, 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. Bradley Slagh (R-85) and 29 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Gina Johnsen (R-78), Jamie Thompson (R-28), Brian BeGole (R-71), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Cameron Cavitt (R-106), Jason Woolford (R-50), Thomas Kuhn (R-57), 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), David Prestin (R-108), Ann Bollin (R-49), Gregory Alexander (R-98), Donni Steele (R-54), 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