HB 4182 — Use tax: exemptions; motor fuel sales; exempt. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 4gg. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4183'25, SB 0578'25

HB-4182, As Passed Senate,House, OctoberMarch 3,19, 2025 SENATE SUBSTITUTE FOR HOUSE BILL NO.

4182 A bill to amend 1937 PA 94, entitled "Use tax act," by amending sectionsections 6c and 21 (MCL 205.96c and 205.111), section 6c as added by 2015 PA 263 and section 21 as amended by 2023 PA 175, and by adding sectionsections 4gg.4gg and 4hh.

(1) BeginningNotwithstanding Januarysection 4k, beginning October 1, 2026,2025, the storage, use, or consumption of eligibleaviation fuel is exempt from the tax under this act.

(2) As used in this section:section, "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.

(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:

ERE H00188'25 (S-2)_HB4182_APS_1 09qt7m 1 (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 the 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 appliances, 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.

(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.

ERE H00188'25 (S-2)_HB4182_APS_1 09qt7m 1 (e) "Motor fuel" means that term as defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004.

4hh.

(1) Beginning October 1, 2025, the storage, use, or KAS H00188'25 (H-1)_HB4182_APH_1 a8j3px 1 consumption of eligible fuel is exempt from the tax under this act.

(2) As used in this section, "eligible fuel" means any fuel subject to the tax levied under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170.

Sec.

6c.

(1) Beginning April 1, 2016 and each calendar quarter thereafter through September 30, 2025, every person storing, using, or consuming aviation fuel, the storage, use, or consumption of which is subject to the tax imposed by this act when the tax was not paid to a seller, and every seller collecting the tax from the purchaser from sales of aviation fuel shall, on or before the last day of the month in the month that immediately follows the end of a calendar quarter, file an informational report with the department on a form prescribed by the department showing all of the following for the immediately preceding calendar quarter:

(a) The entire amount of taxable aviation fuel sold or purchased by the person, as applicable.

(b) The amount of tax for which the person is liable from the purchase or sale of aviation fuel.

(c) The number of taxable gallons of aviation fuel sold or purchased by the person, as applicable, at each airport and the gross proceeds from the sales or purchase of those gallons of aviation fuel, as applicable.

(d) Any other information the department considers necessary for the proper administration of this act.

(2) The report required under this section shall must not include any remittance for tax and does not constitute a return or otherwise alleviate the person's obligations under section 6.

(3) A person required to file the informational report under this section that fails or refuses to file the informational report KAS H00188'25 (H-1)_HB4182_APH_1 a8j3px 1 within the time and in the manner specified in this section shall be is liable for a penalty of $10.00 per day for each day for each separate failure or refusal up to, but not exceeding, a maximum penalty of $500.00 for each separate violation.

The department may waive the penalty if the taxpayer demonstrates to the satisfaction of the department that the failure to file was due to reasonable cause.

(4) As used in this section, "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.

Sec.

(b) All revenue lost from basic school operating mills as a result of the exemption of personal property under sections 9m, 9n, KAS H00188'25 (H-1)_HB4182_APH_1 a8j3px 1 and 9o of the general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o.

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 ERE H00188'25 (S-2)_HB4182_APS_1 09qt7m 1 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.

(5) Beginning Except as otherwise provided in subsection (6), beginning October 1, 2016 and the first day of each calendar KAS H00188'25 (H-1)_HB4182_APH_1 a8j3px 1 quarter thereafter, through September 30, 2025, 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 immediately 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 ERE H00188'25 (S-2)_HB4182_APS_1 09qt7m 1 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.

(6) The For fiscal years ending before October 1, 2025, 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 andand, except as otherwise provided in this subsection, 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 statedepartment treasurermay transfer money between funds, delay and adjust a distribution under subsection (5), or thetake stateany treasurer'sother designeeaction shallthat annuallyKAS provideH00188'25 to(H-1)_HB4182_APH_1 a8j3px 1 the operatordepartment ofconsiders eachnecessary qualifiedto airportaccount afor reportany ofnecessary adjustments, positive or negative, resulting from the reconciliation performed under this subsection.subsection for the fiscal year ending September 30, 2025.

For fiscal years ending before October 1, 2025, 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 under this subsection.

(a) "Aviation fuel" means fuel as that term is defined in ERE H00188'25 (S-2)_HB4182_APS_1 09qt7m 1 section 4 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.4.

KAS H00188'25 (H-1)_HB4182_APH_1 a8j3px 1 (e) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963.

(a) SenateHouse Bill No.

578.