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Act No. 19
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. Slagh, Hoadley, Bierlein, Johnsen, Thompson, BeGole, Tisdel, Borton,
Kelly, Cavitt, Woolford, Kuhn, St. Germaine, Frisbie, DeBoyer, Markkanen, Meerman, Roth,
Jenkins-Arno, Prestin, Bollin, Alexander, Steele, Bruck, Lightner, Rigas, Kunse, Martin,
Outman and VanderWall
ENROLLED HOUSE BILL No. 4182
AN ACT to amend 1937 PA 94, entitled “An act to provide for the levy, assessment, and collection of a specific
excise tax on the storage, use, or consumption in this state of tangible personal property and certain services; to
appropriate the proceeds of that tax; to prescribe penalties; and to make appropriations,” by amending section 21
(MCL 205.111), as amended by 2023 PA 175, and by adding section 4gg.
The People of the State of Michigan enact:
Sec. 4gg. (1) Beginning January 1, 2026, the storage, use, or consumption of eligible fuel is exempt from the
tax under this act.
(2) As used in this section:
(a) “Alternative fuel ” means that term as defined in section 151 of the motor fuel tax act, 2000 PA 403,
MCL 207.1151.
(b) “Eligible fuel” means motor fuel, alternative fuel, and leaded racing fuel, except that eligible fuel does not
include any of the following:
(i) Motor fuel that is sold for use in aircraft if the purchaser paid the privilege tax imposed by section 203 of
the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.203, on the motor fuel and the purchaser is
registered under section 94 of t he motor fuel tax act, 2000 PA 403, MCL 207.1094, if required to be registered
under that section.
(ii) Aviation fuel on which the privilege tax is due under section 203 of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.203.
(iii) Motor fuel on which the privilege tax imposed under section 203 of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.203, has been paid and that is identified on the shipping paper or invoice as
aviation fuel and sold as aviation fuel.
(iv) Motor fuel or alternative fuel sold for residential, commercial, or industrial use for heating, cooling, or
ventilation purposes, such as for use in home or building utility systems, furnaces, boilers, space heaters, water
heaters, dryers and similar appli ances, and heat pumps, including, but not limited to, motor fuel or alternative
fuel that is exempt from the use tax at the additional rate of 2% approved by the electors on March 15, 1994 under
section 4n.
(v) Liquified petroleum gas, unless the liquified petroleum gas is used or for use as those terms are defined in
section 151(j) of the motor fuel tax act, 2000 PA 403, MCL 207.1151.
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(c) “Leaded racing fuel ” means that term as defined in section 4 of the motor fuel tax act, 2000 PA 403,
MCL 207.1004.
(d) “Liquified petroleum gas” means that term as defined in section 151 of the motor fuel tax act, 2000 PA 403,
MCL 207.1151.
(e) “Motor fuel” means that term as defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004.
Sec. 21. (1) Except as otherwise provided in this section, all money received and collected under this act must
be deposited by the department in the state treasury to the credit of the general fund, to be disbursed only by
appropriations by the legislature.
(2) The collections from the use tax imposed at the additional rate of 2% approved by the electors on
March 15, 1994 must be deposited in the state school aid fund.
(3) In addition to the money deposited in the state school aid fund under subsection (2), from the money
received and collected under this act for the state share, an amount equal to the sum of the following, as
determined by the department, must be deposited in the state school aid fund:
(a) All revenue lost under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, as a result of the
exemption of personal property under sections 9m, 9n, and 9o of the general property tax act, 1893 PA 206,
MCL 211.9m, 211.9n, and 211.9o.
(b) All revenue lost from basic school operating mills as a result of the exemption of personal property under
sections 9m, 9n, and 9o of the general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o.
(c) All revenue lost to the state school aid fund as a result of the exemption under section 4(1)(gg).
(d) All revenue lost to the state school aid fund as a result of the exemption under section 4cc. A person that
claims an exemption under section 4cc shall report the purchase price of the data center equipment as that term
is defined in section 4cc and any other information necessary to determine the amount of revenue lost to the state
school aid fund as a result of the exemption under section 4cc annually on a form at the time and in a manner
prescribed by the department. The report required under this su bdivision must not include any remittance for
tax and does not constitute a return or otherwise alleviate the person’s obligations under section 6.
(e) All revenue lost to the state school aid fund as a result of the exclusion under section 2(1)(f)(xv).
(4) Money received and collected under this act for the local community stabilization share is not state funds,
must not be credited to the state treasury, and must be transmitted to the authority for deposit in the treasury of
the authority, to be disbursed by the authority only as authorized under the local community stabilization
authority act, 2014 PA 86, MCL 123.1341 to 123.1362. The local community stabilization share is a local tax, not
a state tax, and money received and collected for the local community stabilization share is money of the authority
and not money of this state.
(5) Beginning October 1, 2016 and the first day of each calendar quarter thereafter, from the money received
and collected under this act for the state share, an amount equal to the collections for the calendar quarter that
is 2 calendar quarters immediate ly preceding the current calendar quarter of the tax imposed under this act at
the additional rate of 2% approved by the electors on March 15, 1994 from the use, storage, or consumption of
aviation fuel must be distributed as follows:
(a) An amount equal to 35% of the collections of the tax imposed at a rate of 2% on the use, storage, or
consumption of aviation fuel must be deposited in the state aeronautics fund and must be expended, on
appropriation, only for those purposes authorized in the aeronautics code of the state of Michigan, 1945 PA 327,
MCL 259.1 to 259.208.
(b) An amount equal to 65% of the collections of the tax imposed at a rate of 2% on the use, storage, or
consumption of aviation fuel must be deposited in the qualified airport fund and must be expended, on
appropriation, only for those purposes authorized under section 35 of the aeronautics code of the state of Michigan,
1945 PA 327, MCL 259.35.
(6) The department shall, on an annual basis, reconcile the amounts distributed under subsection (5) during
each fiscal year with the amounts actually collected for a particular fiscal year and shall make any necessary
adjustments, positive or negative, to the amounts to be distributed for the next successive calendar quarter that
begins January 1. The state treasurer or the state treasurer ’s designee shall annually provide to the operator of
each qualified airport a report of the reconciliation performed u nder this subsection. The reconciliation report is
subject to the confidentiality restrictions and penalties provided in section 28(1)(f) of 1941 PA 122, MCL 205.28.
(7) Beginning with the fiscal year ending September 30, 2024 and each fiscal year thereafter, from the money
received and collected under this act for the state share, $75,000,000.00 must be deposited into the local
government reimbursement fund created in section 3a of the Michigan trust fund act, 2000 PA 489, MCL 12.253a.
(8) As used in this section:
(a) “Aviation fuel ” means fuel as that term is defined in section 4 of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.4.
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(b) “Qualified airport ” means that term as defined in section 109 of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.109.
(c) “Qualified airport fund” means the qualified airport fund created in section 34(2) of the aeronautics code of
the state of Michigan, 1945 PA 327, MCL 259.34.
(d) “State aeronautics fund” means the state aeronautics fund created in section 34(1) of the aeronautics code
of the state of Michigan, 1945 PA 327, MCL 259.34.
(e) “State school aid fund” means the state school aid fund established in section 11 of article IX of the state
constitution of 1963.
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. 4181.
(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