This bill amends the Use Tax Act of 1937 by introducing new exemptions for aviation fuel and eligible fuel, effective October 1, 2025. Specifically, it establishes that the storage, use, or consumption of aviation fuel will be exempt from the tax, and defines "aviation fuel" according to the aeronautics code of Michigan. Additionally, the bill introduces a similar exemption for "eligible fuel," which is defined as any fuel subject to the motor fuel tax. The bill also modifies the reporting requirements for individuals and sellers involved in the storage, use, or consumption of aviation fuel, mandating that they file an informational report without remitting tax payments.

Furthermore, the bill revises the distribution of funds collected under the act, particularly concerning the use tax imposed on aviation fuel. It specifies that a portion of the tax revenue will be allocated to the state aeronautics fund and the qualified airport fund, with detailed provisions for reconciling amounts distributed based on actual collections. The bill also includes a provision for penalties for failure to file the required reports and clarifies the definitions of terms related to aviation fuel and qualified airports. The enactment of this bill is contingent upon the passage of several other specified bills in the legislature.

Statutes affected:
Substitute (H-1): 205.96, 205.111
House Introduced Bill: 205.96, 205.111
As Passed by the House: 205.96, 205.111