The bill amends the Motor Fuel Tax Act to adjust the tax rates imposed on motor fuel in Michigan. Specifically, it establishes a new tax rate of 26.3 cents per gallon for both gasoline and diesel fuel from January 1, 2017, through September 30, 2025. Following 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, specifying that for the rate effective on January 1, 2026, the calculation will be based on the average rate from the previous year, adjusted for inflation.

The bill also includes various provisions regarding the collection and remittance of the tax, ensuring that it is applied to net gallons of motor fuel lost or unaccounted for at terminals, and mandates that bills of lading and invoices must accurately reflect the blended product and fuel product codes. Furthermore, it emphasizes the requirement for terminal operators and suppliers to comply with reporting requirements and outlines the intent of the act to ensure that users of public roads contribute to the maintenance of those roads through the motor fuel tax. The enactment of this bill is contingent upon the passage of several other specified bills in the legislature.

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