HB 4183 — Transportation: motor fuel tax; motor fuel tax; increase and expand applicability. Amends sec. 8 of 2000 PA 403 (MCL 207.1008). TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, SB 0578'25

HB-4183, As Passed Senate,House, OctoberMarch 3,19, 2025 SENATE SUBSTITUTE FOR HOUSE BILL NO.

(1) Except as otherwise provided in this act and subject to the exemptions provided for in this act, tax is imposed on motor fuel imported into or sold, delivered, removed, or used in this state at the following rates:

(ii) Beginning January 1, 2017,2017 and through September 30, 2025, 26.3 cents per gallon on gasoline.

JJR H00173'25 (S-4)_HB4183_APS_1(H-2)_HB4183_APH_1 tjqivwqeh6dp 1 (b)(iii) ExceptBeginning asOctober otherwise1, provided2025, in51 subdivisioncents (c),per asgallon follows:on gasoline.

(b) Except as otherwise provided in subdivision (c), as follows:

(ii) Beginning January 1, 2017,2017 and through September 30, 2025, 26.3 cents per gallon on diesel fuel.

(c)(iii) Beginning ExceptOctober as otherwise provided in this subdivision, beginning with the rate effective on January 1, 2022 and January 1 of each year thereafter, through the rate effective on January 1, 2025, the51 departmentcents shallper determine a cents-per- gallon rate on motordiesel fuelfuel. that shall be is derived by multiplying the cents-per-gallon rate in effect during the immediately preceding calendar year by 1 plus the lesser of 0.05 or the inflation rate and rounding up the product to the nearest 1/10 of a cent.

(c) Beginning Except as otherwise provided in this subdivision, beginning with the rate effective on January 1, 20262022 throughand DecemberJanuary 31,1 2026,of each year thereafter, the department shall determine a cents-per-gallon rate on motor fuel that shall be is equalderived toby multiplying the productcents-per-gallon ofrate 51in centseffect multipliedduring the immediately preceding calendar year by 1 plus the lesser of 0.05 or the inflation rate and rounding up the product to the nearest 1/10 of a cent.

For determining the rate effective on January 1, 20272026 andonly, on January 1 of each year thereafter, the department shall determine athe cents-per-galloncents-per- gallon rate on motor fuel that is derived by multiplying the average cents-per-gallon rate in effect during the immediately2025 preceding calendar year by 1 plus the lesser of 0.05 or the inflation rate, adding the product to the cents-per-gallon rate in effect on October 1, 2025, and rounding up the productsum to the nearest 1/10 of a cent.

JJR H00173'25 (S-4)_HB4183_APS_1(H-2)_HB4183_APH_1 tjqivwqeh6dp 1 (4) Tax is also imposed at the rate described in subsection (1) on net gallons of motor fuel, including transmix, lost or unaccounted for , at each terminal in this state.

JJR H00173'25 (S-4)_HB4183_APS_1(H-2)_HB4183_APH_1 tjqivwqeh6dp 1 (7) Notwithstanding any other provision of this act, a facility in this state that produces motor fuel and distributes the fuel from a rack for purposes of this act is a terminal, shall obtain a terminal operator license, and shall comply with all terminal operator reporting requirements under this act.

The department shall publish notice of the increased rate that applies beginning October 1, 2025 not later than September 1, 2025.

(10) Subject to subsections (11) to (13), the tax levied under this act, at a rate equal to the difference between the tax rate in effect on January 1, 2025, and the tax rate in effect on January 1, 2026, is imposed on all of the following as provided in this subsection:

(a) Motor fuel in excess of 3,000 gallons held in storage by an end user as of 11:59 p.m.

on December 31, 2025, or held for sale at the close of business on December 31, 2025 that is in excess of dead storage, as to which the tax imposed by subsection (1), at the rate in effect on January 1, 2025, has been previously paid or has been accrued by either of the following:

(i) A licensed supplier at the time of removal from a terminal.

JJR H00173'25 (S-4)_HB4183_APS_1 tjqivw 1 (ii) A licensed importer, if all of the conditions in sections 76, 82, and 104, as applicable, concerning the lawful importation of motor fuel by the importer have been met.

(b) All nonexempt motor fuel held by a person outside of the bulk transfer/terminal system in this state as of 11:59 p.m.

on December 31, 2025, in excess of 3,000 gallons, as to which the tax imposed by subsection (1) at the rate in effect on January 1, 2025 has not been previously paid or has not been accrued by either of the following:

(i) A licensed supplier at the time of removal from a terminal.

(ii) A licensed importer, if all of the conditions in sections 76, 82, and 104, as applicable, concerning the lawful importation of motor fuel by the importer have been met.

(11) A person in possession of motor fuel that is subject to the tax under subsection (10) must take an inventory to determine the number of gallons of motor fuel subject to the tax under subsection (10) and report those gallons of motor fuel to the department in the form and manner prescribed by the department.

(12) The amount of the tax due under subsection (10) is equal to the tax rate described in subsection (10) multiplied by the number of gallons of motor fuel subject to the tax imposed under subsection (10).

(13) By not later than February 20, 2026, the report required under subsection (11) must be filed with the department, together with payment of the applicable tax due under subsection (10).

(a) SenateHouse Bill No.

578.

JJR H00173'25 (S-4)_HB4183_APS_1 tjqivw (b) House Bill No.

(c)(b) House Bill No.

(d)(c) House Bill No.

Final(d) PageHouse JJRBill H00173'25No. (S-4)_HB4183_APS_1 tjqivw

4184.

(e) House Bill No.

4185.

(f) House Bill No.

4186.

(g) House Bill No.

4187.

JJR H00173'25 (H-2)_HB4183_APH_1 qeh6dp (h) House Bill No.

4230.

Final Page JJR H00173'25 (H-2)_HB4183_APH_1 qeh6dp