2025 House Bill 4182 / Public Act 19

Use tax: exemptions; motor fuel sales; exempt.

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.

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. Bradley Slagh (R-85) and 29 co-sponsors

Co-sponsored by Reps. Mike Hoadley (R-99), Matt Bierlein (R-97), Gina Johnsen (R-78), Jamie Thompson (R-28), Brian BeGole (R-71), Mark Tisdel (R-55), Ken Borton (R-105), Tim Kelly (R-93), Cameron Cavitt (R-106), Jason Woolford (R-50), Thomas Kuhn (R-57), Alicia St. Germaine (R-62), Steve Frisbie (R-44), Jay DeBoyer (R-63), Greg Markkanen (R-110), Luke Meerman (R-89), John Roth (R-104), Nancy Jenkins-Arno (R-34), David Prestin (R-108), Ann Bollin (R-49), Gregory Alexander (R-98), Donni Steele (R-54), William Bruck (R-30), Sarah Lightner (R-45), Angela Rigas (R-79), Tom Kunse (R-100), David Martin (R-68), 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 101 to 8 (details)

Signed by Gov. Gretchen Whitmer

Oct. 7, 2025