The bill amends the Motor Fuel Tax Act to adjust 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 responsibilities of suppliers regarding tax collection and remittance, mandates that invoices must accurately reflect the blended product and fuel product codes, and establishes that facilities producing motor fuel must obtain a terminal operator license. Furthermore, it requires the Department to publish notice of tax rate changes at least 30 days prior to their effective date, with a specific notice for the increased rate effective October 1, 2025, to be published by September 1, 2025. The enactment of this bill is contingent upon the passage of several other specified bills in the 103rd Legislature.

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