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Act No. 18
Public Acts of 2025
Approved by the Governor
October 7, 2025
Filed with the Secretary of State
October 7, 2025
EFFECTIVE DATE: October 7, 2025
STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2025
Introduced by Reps. Frisbie, Hoadley, Bierlein, Thompson, BeGole, Tisdel, Borton, Kelly,
Johnsen, Cavitt, Woolford, Prestin, St. Germaine, Kuhn, DeBoyer , Markkanen, Meerman,
Roth, Jenkins -Arno, Bollin, Alexander, Steele, Bruck, Lightner, Kunse, Martin, Rigas,
Outman and VanderWall
ENROLLED HOUSE BILL No. 4181
AN ACT to amend 2004 PA 175, entitled “An act to impose taxes and create credits and refundable credits to
modify and equalize the impact of changes made to the general sales tax act and use tax act necessary to bring
those taxes into compliance with the streamlined sales tax agreement so this state may participate in the
streamlined sales tax system and governing board; to prescribe certain powers and duties of certain state
departments; and to provide for the disbursement of certain proceeds,” by amending sections 3 and 5 (MCL 205.173
and 205.175), section 3 as amended by 2015 PA 177 and section 5 as amended by 2022 PA 24.
The People of the State of Michigan enact:
Sec. 3. As used in this act:
(a) “Alternative fuel” means that term as defined in section 151 of the motor fuel tax act, MCL 207.1151.
(b) “Department” means the department of treasury.
(c) “Diesel fuel” means that term as defined in section 2 of the motor fuel tax act, MCL 207.1002.
(d) “Gallon equivalent” means that term as defined in section 151 of the motor fuel tax act, MCL 207.1151.
(e) “Gasoline” means that term as defined in section 3 of the motor fuel tax act, MCL 207.1003.
(f) “Interstate motor carrier ” means a person that operates or causes to be operated a qualified commercial
motor vehicle on a public road or highway in this state and at least 1 other state or Canadian province.
(g) “Motor fuel” means diesel fuel and gasoline.
(h) “Motor fuel tax act” means the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170.
(i) “Person” means an individual, firm, partnership, joint venture, association, social club fraternal
organization, municipal or private corporation whether or not organized for profit, company, limited liability
company, estate, trust receiver, trustee, syndicate, t he United States, this state, country, or any other group or
combination acting as a unit, and the plural as well as the singular number, unless the intention to give a more
limited meaning is disclosed by the context.
(j) “Qualified commercial motor vehicle” means that term as defined in section 1 of the motor carrier fuel tax
act, 1980 PA 119, MCL 207.211.
(k) “Sales tax” means the tax levied under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(l) “Tax” includes all taxes, interest, or penalties levied under this act.
(m) “Taxpayer” means a person subject to tax under this act.
(n) “Use tax” means the tax levied under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
Sec. 5. (1) Through and including the tax period ending December 31, 2025, there is levied on and there shall
be collected from every person in this state that is an interstate motor carrier a specific tax for the privilege of
using or consuming motor fuel and alternative fuel in a qualified commercial motor vehicle in this state.
(2) For motor fuel on which the tax imposed under subsection (1) applies, the tax is imposed at a cents -per-
gallon rate equal to 6% of the statewide average retail price of a gallon of self-serve undyed No. 2 ultra-low sulfur
diesel fuel or self -serve unleaded regular gasoline, as applicable, rounded down to the nearest 1/10 of a cent as
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determined and certified quarterly by the department. This tax on motor fuel used by interstate motor carriers in
a qualified commercial motor vehicle must be collected under the international fuel tax agreement. An interstate
motor carrier is entitled to a credit for 6% of the price of motor fuel purchased in this state before January 1, 2026
and used in a qualified commercial motor vehicle. This credit must be claimed on the returns filed under the
international fuel tax agreement.
(3) For alternative fuel on which the tax imposed under subsection (1) applies, the tax is imposed at a cents -
per-gallon rate, or cents -per-gallon equivalent rate, as applicable, equal to 6% of the average retail price of a
gallon or gallon equivalent, as applicable, of the applicable alternative fuel rounded down to the nearest 1/10 of a
cent as determined and certified quarterly by the department. For purposes of this subsection, the average retail
price is to be based on the statewide average price of th e particular alternative fuel, as determined by the
department, unless the department determines that a statewide average is not readily available. If a statewide
average is not readily available, the department may use available regional or nationwide ave rage retail pricing
information, or if regional or nationwide pricing information cannot be readily obtained, may use the average
retail price applicable to gasoline under subsection (2) for compressed natural gas or the average retail price
applicable to diesel fuel under subsection (2) for all other types of alternative fuel, with adjustments as the
department determines are appropriate to convert gasoline or diesel fuel prices to prices for alternative fuel.
(4) The tax on alternative fuel under subsection (3) used by interstate motor carriers in a qualified commercial
motor vehicle must be collected under the international fuel tax agreement. An interstate motor carrier is entitled
to a credit for 6% of the p rice of alternative fuel purchased in this state before January 1, 2026 and used in a
qualified commercial motor vehicle. This credit must be claimed on the returns filed under the international fuel
tax agreement.
(5) This section does not apply to an interstate motor carrier to the extent that the interstate motor carrier is
exempt from the requirements of this section under a qualified fuel tax reciprocity agreement as that term is
defined in section 3 of 1960 PA 124, MCL 3.163.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the
103rd Legislature are enacted into law:
(a) Senate Bill No. 578.
(b) House Bill No. 4180.
(c) House Bill No. 4182.
(d) House Bill No. 4183.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor