The proposed bill amends the Michigan Vehicle Code by adding a new section, 801l, which introduces a tax structure for electric vehicles, self-charging hybrid electric vehicles, and plug-in hybrid electric vehicles starting January 1, 2027. Vehicle owners or lessees will have the option to pay either an electric vehicle flat tax or a miles-traveled tax, with the choice left to the owner's discretion. The flat tax varies based on the vehicle type and its fuel tax discount, while the miles-traveled tax is calculated based on the number of miles driven, with specific provisions for reporting and billing.

Additionally, the bill outlines the responsibilities of an account manager, who will be contracted by the Secretary of State to manage the miles-traveled tax program, including billing, data collection, and ensuring compliance with reporting requirements. The Secretary of State is also tasked with ensuring the privacy of participating vehicle owners and providing an online payment portal for tax bills. The bill includes penalties for inaccurate reporting and non-compliance, as well as provisions for reducing tax bills based on miles driven outside of Michigan. Overall, the legislation aims to create a fair tax system for alternative fuel vehicles while ensuring proper administration and accountability.

Statutes affected:
House Introduced Bill: 257.1, 257.923