2025 House Bill 4183 / Public Act 20

Transportation: motor fuel tax; motor fuel tax; increase.

An act to amend 2000 PA 403, entitled “An act to prescribe a tax on the sale and use of certain types of fuel in motor vehicles on the public roads or highways of this state and on certain other types of gas; to prescribe the manner and the time of collection and payment of this tax and the duties of officials and others pertaining to the payment and collection of this tax; to provide for the licensing of persons involved in the sale, use, or transportation of motor fuel and the collection and payment of the tax imposed by this act; to prescribe fees; to prescribe certain other powers and duties of certain state agencies and other persons; to provide for exemptions and refunds and for the disposition of the proceeds of this tax; to provide for appropriations from the proceeds of this tax; to prescribe remedies and penalties for the violation of this act; and to repeal acts and parts of acts,” by amending section 8 (MCL 207.1008), as amended by 2015 PA 176.

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. Tom Kunse (R-100) and 25 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), Thomas Kuhn (R-57), 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), Gregory Alexander (R-98), Donni Steele (R-54), William Bruck (R-30), 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-2

Substitute H-2 concurred in by voice vote

March 19, 2025

Passed in the House 62 to 46 (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-4

Substitute S-4 concurred in by voice vote

Oct. 3, 2025

Passed in the Senate 24 to 12 (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-4 concurred in 98 to 11 (details)

Signed by Gov. Gretchen Whitmer

Oct. 7, 2025