2025 House Bill 4181 / Public Act 18

Streamline sales and use tax: exemptions; tax on motor fuel; exclude.

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.

Mackinac Center Analysis

House Bills 4180-87 and House Bill 4230 replace the sales tax levied on fuel purchase with a 20 cent per-gallon tax on fuel. The bills eliminate the earmark from corporate income taxes to selective business subsidy programs and allocates the revenue from the tax to transportation funding. Overall, the package is a 73% increase in state spending on roads, allocating $3.2 billion more to this effort.

Introduced in the House

March 6, 2025

Introduced by Rep. Steve Frisbie (R-44) and 28 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Jamie Thompson (R-28), Brian BeGole (R-71), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Gina Johnsen (R-78), Cameron Cavitt (R-106), Jason Woolford (R-50), David Prestin (R-108), Alicia St. Germaine (R-62), Thomas Kuhn (R-57), Jay DeBoyer (R-63), Greg Markkanen (R-110), Luke Meerman (R-89), John Roth (R-104), Nancy Jenkins-Arno (R-34), Ann Bollin (R-49), Gregory Alexander (R-98), Donni Steele (R-54), William Bruck (R-30), Sarah Lightner (R-45), Tom Kunse (R-100), David Martin (R-68), Angela Rigas (R-79), Pat Outman (R-91) and Curtis VanderWall (R-102)

Referred to the Committee on Transportation and Infrastructure

March 18, 2025

Reported with substitute H-1

Substitute H-1 concurred in by voice vote

March 19, 2025

Passed in the House 65 to 43 (details)

Motion to give immediate effect by Rep. Bryan Posthumus (R-90)

The motion prevailed by voice vote

Received in the Senate

April 15, 2025

Referred to the Committee on Appropriations

Oct. 2, 2025

Discharged from committee

Referred to the Committee of the Whole

Reported with substitute S-2

Substitute S-2 concurred in by voice vote

Oct. 3, 2025

Passed in the Senate 31 to 5 (details)

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Received in the House

Oct. 3, 2025

Substitute S-2 concurred in 102 to 7 (details)

Signed by Gov. Gretchen Whitmer

Oct. 7, 2025