The bill amends the "Streamlined sales and use tax revenue equalization act" by updating definitions and tax provisions related to motor fuel and alternative fuel used by interstate motor carriers. Key insertions include the definition of the "motor fuel tax act" and the establishment of a specific tax on the use of motor fuel and alternative fuel in qualified commercial motor vehicles, which is set at a rate of 6% based on the average retail price of the respective fuels. The bill specifies that this tax will be collected under the international fuel tax agreement and provides for a credit for interstate motor carriers for fuel purchased in Michigan before October 1, 2025.

Additionally, the bill clarifies that the tax on alternative fuel will also be based on the average retail price, with provisions for using regional or nationwide pricing if a statewide average is not available. The amendments include various deletions of outdated references to the motor fuel tax act and adjustments to the language for clarity. The enactment of this bill is contingent upon the passage of several other related bills in the 103rd Legislature.

Statutes affected:
Substitute (H-1): 205.173, 205.175
House Introduced Bill: 205.173, 205.175
As Passed by the House: 205.173, 205.175