FUEL TAX DEFINITIONS; MODIFY H.B. 5379 (H-1) & 5747:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
House Bill 5379 (Substitute H-1 as reported without amendment)
House Bill 5747 (as reported without amendment)
Sponsor: Representative Jenn Hill
House Committee: Transportation, Mobility and Infrastructure
Senate Committee: Transportation and Infrastructure
CONTENT
House Bill 5379 (H-1) would amend Public Act (PA) 124 of 1960, which establishes the Michigan
Highway Reciprocity Board, to do the following:
-- Modify the definition of "qualified fuel tax reciprocity agreement" to increase, from 30 air miles
to not more than 50 air miles from the State’s border, the range within which a qualified
motor vehicle could operate.
-- Modify the definition of "qualified commercial vehicle".
House Bill 5747 would amend the Motor Carrier Fuel Tax Act to modify the definition of "qualified
commercial vehicle" to make the same changes proposed by House Bill 5379 (H-1).
The bills are tie-barred.
MCL 3.163 (H.B. 5379)
207.211 (H.B. 5747)
BRIEF RATIONALE
Reportedly, the International Fuel Tax Act (IFTA) was created to streamline reporting
requirements; however, many truckers and trucking companies find these requirements
burdensome. Accordingly, PA 25 of 2022 allowed the State to enter into qualified fuel tax
reciprocity agreements with other states, replacing IFTA requirements for participants. In
2022, Michigan entered a qualified fuel tax agreement with Wisconsin; however, a current
provision concerning the range within which a qualified motor vehicle may operate has led to
the exclusion of a lumber mill in Escanaba. It has been suggested that the range be extended
to include the mill.
Legislative Analyst: Abby Schneider
FISCAL IMPACT
House Bill 5379 (H-1)
The bill would not have a significant fiscal impact on the Department of Treasury. While the
bill would permit the Department to negotiate agreements pertaining to the transportation of
raw forest products to a sawmill or factory up to 50 air miles within Michigan's borders, rather
than less than 30 air miles as in current law, it would not require the Department to undertake
any negotiations. It is possible that a significant increase in agreements would result in an
increased need for staff or resources within the Department, but it is more likely that current
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staff and appropriation levels would be adequate to manage these negotiations and conduct
administrative activities related to any tax changes.
House Bill 5747
The bill would have no fiscal impact on State or local government.
Date Completed: 10-18-24 Fiscal Analyst: Bobby Canell
Joe Carrasco, Jr.
Cory Savino, PhD
SAS\Floors2324\hb5379
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 2 of 2 Bill Analysis @ www.senate.michigan.gov/sfa hb5379/5747/2324


Statutes affected:
House Introduced Bill: 207.211
As Passed by the House: 207.211