Sales tax: exemptions; motor fuel sales; exempt. Amends secs. 6a & 25 of 1933 PA 167 (MCL 205.56a & 205.75) & adds sec. 4gg. TIE BAR WITH: HB 4181'25, HB 4182'25, HB 4183'25, SB 0578'25

Removed a provision that would have exempted aviation fuel from sales tax starting October 1, 2025.

Added a new exemption for eligible fuel (motor fuel, alternative fuel, and leaded racing fuel) effective January 1, 2026.

Introduced new definitions for 'eligible fuel', 'alternative fuel', 'leaded racing fuel', 'liquified petroleum gas', and 'motor fuel' to clarify what products qualify for tax exemptions.

Expanded the definition of eligible fuel to include motor fuel used for residential, commercial, or industrial heating, cooling, and ventilation systems.

Updated the text to reference section 25 instead of section 6c regarding amended sections, reflecting changes made by recent legislation.

The definition of 'eligible fuel' was changed from a list including alternative and leaded racing fuel to a broader category covering any fuel subject to the motor fuel tax act.

A new definition for 'aviation fuel' was added, referencing the state's aeronautics code.

The effective date for the fuel exemption was changed from January 1, 2026, to October 1, 2025.

A new section was added to establish specific prepayment rates for diesel fuel in addition to gasoline.

The prepayment schedule was updated to cover the period from April 1, 2016, through September 30, 2025, instead of extending to December 31, 2025.

The exemption for eligible fuel sales was delayed from October 1, 2025, to January 1, 2026.

The deadline for the department to determine and publish monthly prepayment rates was extended from September 30, 2025, to December 31, 2025.

The definition of 'eligible fuel' was expanded to include alternative fuel and leaded racing fuel, whereas the original version only defined it broadly as fuel subject to the motor fuel tax act.

New exclusions were added to 'eligible fuel' to prevent abuse, specifically excluding motor fuel sold for aircraft use if privilege tax was paid, and fuel used for residential, commercial, or industrial heating/cooling.

A comprehensive list of new definitions was added to clarify terms such as 'alternative fuel,' 'bulk transfer,' 'diesel fuel,' and 'transport truck' to ensure consistent application of the tax rules.

New penalties were established for refiners, terminal operators, or marine terminal operators who fail to remit prepayments made by purchasers or receivers.

Added a new exemption for the sale of aviation fuel at retail, effective October 1, 2025.

Added a new exemption for the sale of eligible motor fuel at retail, effective October 1, 2025.

Introduced extensive new definitions for terms such as 'bulk transfer,' 'refiner,' 'rack,' and 'transport truck' to clarify tax obligations.

Updated prepayment requirements for gasoline and diesel to include specific monthly reporting schedules and penalties for failure to remit payments.

Established a new effective date of October 1, 2025, for the new fuel exemptions, replacing previous dates.