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.