This 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 definitions have been clarified, including the terms "motor fuel tax act," "sales tax," and "use tax," with specific references to the motor fuel tax act being updated to reflect current law. The bill also specifies that a tax is levied on interstate motor carriers for the use of motor fuel and alternative fuel in qualified commercial motor vehicles, with the tax rate set at 6% of the average retail price of the respective fuels.

Additionally, the bill introduces a credit for interstate motor carriers for 6% of the price of motor fuel and alternative fuel purchased in Michigan before October 1, 2025, which must be claimed on returns filed under the international fuel tax agreement. The tax provisions are designed to ensure that the tax is collected in accordance with the international fuel tax agreement, and the bill outlines the conditions under which the tax does not apply, particularly in cases where carriers are exempt under a qualified fuel tax reciprocity agreement. The enactment of this bill is contingent upon the passage of several other specified 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