The bill amends the existing law regarding the taxation of motor fuel in Michigan, specifically updating Section 8 of 2000 PA 403. It establishes a tax on motor fuel imported, sold, delivered, or used in the state, with specific rates set for gasoline and diesel fuel. The tax rates are set at 19 cents per gallon for gasoline and 15 cents per gallon for diesel through December 31, 2016, increasing to 26.3 cents per gallon for both fuels starting January 1, 2017. Additionally, beginning January 1, 2022, the tax rate will be adjusted annually based on inflation, with a specific formula for calculating the cents-per-gallon rate. The bill also imposes a tax on net gallons of motor fuel lost or unaccounted for at terminals, and it outlines the responsibilities of suppliers and licensees in collecting and remitting the tax.

Furthermore, the bill introduces a provision for a tax on motor fuel held in excess of 3,000 gallons by end users or outside the bulk transfer/terminal system as of December 31, 2025. This tax is applicable to fuel for which the previous tax has not been paid or accrued. The bill mandates that individuals in possession of such fuel must inventory and report the gallons subject to tax to the department by February 20, 2026. The enactment of this bill is contingent upon the passage of several other specified bills from the 103rd Legislature.

Statutes affected:
Substitute (H-2): 207.1008
Substitute (S-4): 207.1008
House Introduced Bill: 207.1008
As Passed by the House: 207.1008
As Passed by the Senate: 207.1008
House Concurred Bill: 207.1008
House Enrolled Bill: 207.1008
Public Act: 207.1008