The bill amends the General Sales Tax Act of 1933 to introduce new exemptions for the sale of aviation fuel and eligible fuel, effective October 1, 2025. Specifically, it exempts the retail sale of aviation fuel, as defined by the aeronautics code of Michigan, and provides a similar exemption for eligible fuel, which is any fuel subject to the motor fuel tax act. Additionally, the bill modifies existing language in Sections 6a and 6c, changing "shall" to "must" to clarify obligations regarding tax prepayments for gasoline and diesel fuel, and updates the timeline for tax prepayment rates and the department's responsibilities in determining and publishing these rates.

Moreover, the bill introduces several definitions related to the fuel industry, including terms such as "Removal," "Supplier," "Tank wagon," "Terminal," "Transport truck," "Transmix," and "Two-party exchange." It specifies that a "Terminal" must be registered with the Internal Revenue Service and outlines the criteria for a "Two-party exchange" in fuel transactions. Taxpayers selling aviation fuel are required to file a quarterly informational report detailing their sales and tax liabilities from April 1, 2016, through September 30, 2025. The bill also establishes penalties for failure to file these reports, with a daily fine of $10, capped at $500 for each violation, although the department may waive penalties under certain circumstances. The enactment of this bill is contingent upon the passage of several other specified bills from the 103rd Legislature.

Statutes affected:
Substitute (H-1): 205.56
House Introduced Bill: 205.56
As Passed by the House: 205.56