2025 House Bill 4185

Sales tax: distribution; distribution of revenue; modify.

A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 25 (MCL 205.75), as amended by 2023 PA 20.

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. Rylee Linting (R-27) 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), Alicia St. Germaine (R-62), Thomas Kuhn (R-57), Steve Frisbie (R-44), David Prestin (R-108), Jay DeBoyer (R-63), Greg Markkanen (R-110), Luke Meerman (R-89), John Roth (R-104), Nancy Jenkins-Arno (R-34), Gregory Alexander (R-98), Ann Bollin (R-49), 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-2

Substitute H-2 concurred in by voice vote

March 19, 2025

Amendment offered by Rep. Pat Outman (R-91)

1. Amend page 1, line 7, after “to” by inserting “section 12 of”.

2. Amend page 1, line 8, after “MCL” by striking out the balance of the subsection and inserting “141.912.”.

3. Amend page 5, line 8, after “distributed” by inserting “on a per capita population basis”.

The amendment passed by voice vote

Passed in the House 64 to 44 (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