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Read. Follow. Verify.Michigan Exempts Eligible Motor and Alternative Fuels from General Sales Tax Beginning January 1, 2026
Last action · October 8, 2025: assigned PA 17'25 with immediate effectSponsors: Donni Steele and 28 others
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What This Bill Does
Beginning January 1, 2026, Michigan exempts eligible motor fuel, , and leaded racing fuel from the general sales tax. The measure also mandates that lost state school aid fund revenue resulting from this fuel sales tax exemption be reimbursed from general sales tax collections. Furthermore, the legislation conditions its enactment on the passage of related Senate Bill No. 578 and House Bills 4181, 4182, and 4183.
Consumers purchasing eligible motor and s will no longer pay state general sales tax on those purchases starting in 2026, while the state school aid fund will receive backfilled revenue transfers to offset the resulting tax collection losses.
- House Bill 4180 amends the General Sales Tax Act of 1933 to alter tax collection and exemption rules for motor fuels in Michigan. context
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Fuel Purchasers and Consumers
Purchasers of eligible motor, alternative, and leaded racing fuel will no longer pay general sales tax on these purchases starting January 1, 2026.
State School Aid Fund
The fund will receive mandated deposits from general sales tax collections to replace revenue lost due to the new fuel tax exemption.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
When does the sales tax exemption on eligible fuel take effect?
What types of fuel are included as eligible fuel?
Are aviation and heating fuels included in the sales tax exemption?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Signed into law.
Procedural history
36 actions- Oct 8, 2025Houseassigned PA 17'25 with immediate effect
- Oct 8, 2025Housefiled with Secretary of State 10/07/2025 01:20 PM
- Oct 8, 2025HouseEnrolledapproved by the Governor 10/07/2025 12:04 PM
- Oct 7, 2025HouseEnrolledpresented to the Governor 10/06/2025 03:08 PM
- Oct 3, 2025Housebill ordered enrolled
- Oct 3, 2025Housetitle amendment agreed to
Show 30 earlier actions
- Oct 3, 2025Houseroll call Roll Call #249 Yeas 102 Nays 7 Excused 0 Not Voting 1
- Oct 3, 2025HouseSenate substitute (S-3) concurred in
- Oct 3, 2025Houserule suspended
- Oct 3, 2025Houselaid over one day under the rules
- Oct 3, 2025Housereturned from Senate with substitute (S-3) with immediate effect and title amendment
- Oct 3, 2025SenateRETURNED TO HOUSE
- Oct 3, 2025SenateTITLE AMENDED
- Oct 3, 2025SenateFloorPASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 269 YEAS 30 NAYS 6 EXCUSED 1 NOT VOTING 0
- Oct 3, 2025SenatePLACED ON IMMEDIATE PASSAGE
- Oct 3, 2025SenateRULES SUSPENDED
- Oct 2, 2025SenatePLACED ON ORDER OF THIRD READING WITH SUBSTITUTE (S-3)
- Oct 2, 2025SenateSUBSTITUTE (S-3) CONCURRED IN
- Oct 2, 2025SenateREPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-3)
- Oct 2, 2025SenateRULES SUSPENDED FOR IMMEDIATE CONSIDERATION
- Oct 2, 2025SenatePLACED ON ORDER OF GENERAL ORDERS
- Oct 2, 2025SenateDISCHARGE COMMITTEE APPROVED
- Apr 15, 2025SenateCommitteeREFERRED TO COMMITTEE ON APPROPRIATIONS
- Apr 15, 2025SenateFloorPASSED BY HOUSE WITH IMMEDIATE EFFECT
- Mar 19, 2025Housetransmitted
- Mar 19, 2025HouseFloorpassed; given immediate effect Roll Call #33 Yeas 65 Nays 43 Excused 0 Not Voting 2
- Mar 19, 2025HouseFloorread a third time
- Mar 18, 2025Houseplaced on third reading
- Mar 18, 2025HouseFloorsubstitute (H-1) adopted
- Mar 18, 2025HouseFloorread a second time
- Mar 18, 2025Housereferred to second reading
- Mar 18, 2025HouseCommitteereported with recommendation with substitute (H-1)
- Mar 11, 2025Housebill electronically reproduced 03/06/2025
- Mar 6, 2025HouseCommitteereferred to Committee on Transportation and Infrastructure
- Mar 6, 2025HouseIntroducedread a first time
- Mar 6, 2025HouseIntroducedintroduced by Representative Rep. Donni Steele
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 24 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Fuel Sales Tax Exemption
The legislation introduces a broad sales tax exemption for eligible motor and alternative fuels starting in 2026 while safeguarding the state school aid fund through statutory backfill provisions.
Connected Entities
Sources
legislature.mi.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz45Current news / social attention level
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