The bill amends the Motor Fuel Tax Act by updating the tax rates imposed on motor fuel in Michigan. Specifically, it establishes a tax rate of 26.3 cents per gallon for both gasoline and diesel fuel from January 1, 2017, through September 30, 2025. After this period, the tax rate will increase to 51 cents per gallon for both gasoline and diesel fuel starting October 1, 2025. Additionally, the bill modifies the method for determining future tax rates, requiring the Department to calculate the cents-per-gallon rate based on the previous year's rate adjusted for inflation, with specific provisions for the rate effective on January 1, 2026.

The bill also clarifies the requirements for tax collection and reporting, stating that tax must be collected at the time of fuel removal and that invoices must accurately reflect the blended product and applicable tax rates. It emphasizes the intent to ensure that those using public roads contribute to their maintenance through fuel taxes and allows for refunds for those using fuel for nontaxable purposes. Furthermore, the bill stipulates that the Department must publish notice of tax rate changes in advance, ensuring transparency in the tax adjustment process.

Statutes affected:
Substitute (H-2): 207.1008
House Introduced Bill: 207.1008
As Passed by the House: 207.1008