The bill amends the existing law regarding the taxation of motor fuel and alternative fuel used by interstate motor carriers in Michigan. It establishes a specific tax rate of 6% on the statewide average retail price of diesel fuel and gasoline, applicable to the use or consumption of these fuels in qualified commercial motor vehicles. The tax is to be collected under the international fuel tax agreement, and interstate motor carriers are entitled to a credit for 6% of the price of fuel purchased in Michigan before January 1, 2026, which must be claimed on their tax returns.

Additionally, the bill outlines the definitions of key terms such as "alternative fuel," "motor fuel," and "qualified commercial motor vehicle," and specifies that the tax on alternative fuel will also be based on a 6% rate of the average retail price, with provisions for determining prices if statewide averages are not available. The bill includes a provision that exempts certain interstate motor carriers from the tax if they are covered under a qualified fuel tax reciprocity agreement. The enactment of this bill is contingent upon the passage of several other specified bills from the 103rd Legislature.

Statutes affected:
Substitute (H-1): 205.173, 205.175
Substitute (S-2): 205.173, 205.175
House Introduced Bill: 205.173, 205.175
As Passed by the House: 205.173, 205.175
As Passed by the Senate: 205.173, 205.175
House Concurred Bill: 205.173, 205.175
House Enrolled Bill: 205.173, 205.175
Public Act: 205.173, 205.175