This bill amends the General Sales Tax Act of 1933 by introducing an exemption for the sale of eligible fuel starting January 1, 2026. Specifically, it states that the sale of eligible fuel will not be subject to sales tax, while also clarifying that this exemption does not apply to the use of electric fuel for vehicle propulsion if that use is already taxed under the motor carrier fuel tax act or the motor fuel tax act. The bill also updates the definitions of terms related to fuel, including "electric fuel," "eligible fuel," "leaded racing fuel," and "liquefied petroleum gas," ensuring they align with definitions in the motor fuel tax act.

Additionally, the bill modifies the existing definitions by replacing certain terms and adding new ones, such as the definition of "electric fuel." It also specifies that eligible fuel does not include various types of fuel used for aviation or residential heating purposes. The enactment of this bill is contingent upon the passage of two other specified bills in the 103rd Legislature.

Statutes affected:
House Introduced Bill: 205.54