HB 4375 amends Michigan's Use Tax Act to limit the tax credit for trade-in value when purchasing new vehicles. It caps the deductible trade-in value at $5,000 for motor vehicles or recreational vehicles (previously $2,000, increased annually until 2018). This change directly affects vehicle buyers and dealers in transactions involving trade-ins, as it reduces the amount that can be offset against the purchase price for tax calculation purposes. The bill updates Section 2(f)(xii) of the Use Tax Act to reflect this $5,000 maximum. The change became effective immediately after the bill passed the Michigan House on October 23, 2025.
SB 565 amends Michigan's property tax reimbursement fund rules to require that unused funds from the local government reimbursement fund lapse (transfer) to the state's general fund at year-end, instead of remaining in the fund. It directly affects municipalities that receive state reimbursements for revenue lost due to small business property tax exemptions under the General Property Tax Act. The key change modifies Section 3a of the Michigan Trust Fund Act (2000 PA 489) to ensure unspent funds are returned to the state's general budget annually, rather than carrying over. This is a procedural adjustment to fund management, not a change to tax exemptions or reimbursement eligibility.
SB 166 allocates funding for K-12 public schools in the state for the 2025-2026 fiscal year. It directly affects all public K-12 school districts by providing their state education budget. The bill establishes the specific financial amounts schools will receive during this fiscal period. It became law on October 7, 2025, with immediate effect (PA 0015'25).
HB 4181 removes a sales tax exemption for certain motor fuel purchases by amending Michigan's 2004 tax code (MCL 205.173 & 205.175). The bill directly affects businesses and consumers purchasing motor fuel by eliminating an existing tax exemption, meaning these purchases will now be subject to sales tax. It streamlines the tax code by clarifying that motor fuel is no longer exempt from sales tax under the specified sections. The bill was enacted on October 7, 2025, and is now law as Public Act 18 of 2025.
SB 578 creates a new Neighborhood Roads Fund to support maintenance of local neighborhood streets and modifies the existing Movable Bridge Fund to improve bridge infrastructure funding. The bill changes how these funds are managed and allocated, directly affecting local governments responsible for road and bridge upkeep. Key provisions include establishing dedicated funding sources for neighborhood roads and adjusting eligibility rules for bridge repair projects. These changes clarify state funding streams for community infrastructure without altering tax rates or new construction policies.
HB 4183 increases the motor fuel tax rate and expands the types of fuels subject to the tax under Michigan law. It directly affects motor fuel sellers (like gas stations) and consumers through higher costs for gasoline and other taxed fuels. The bill amends Section 8 of the 2000 Motor Fuel Tax Act (MCL 207.1008) to implement these changes, which became law immediately upon approval by the Governor on October 7, 2025.
HB 4951 creates a new tax on marijuana sales to fund state road infrastructure projects. It directly affects marijuana businesses (which pay the tax) and state transportation budgets (which receive the revenue). The key mechanism establishes a dedicated funding stream, redirecting tax revenue from cannabis sales toward repairing and maintaining roads, rather than general state funds. The bill became law immediately upon the Governor's approval on October 7, 2025.
HB 4287 modifies Michigan's individual income tax code to adjust deductions for retirement and pension benefits. It increases the maximum deductible amount for retirement income to $42,240 for single filers and $84,480 for joint filers, with annual adjustments based on the Consumer Price Index. This change directly affects Michigan taxpayers who receive retirement or pension benefits, allowing them to reduce their taxable income by a larger portion of those benefits while maintaining specific eligibility rules. The bill does not alter other tax provisions or include broadband-related funding as referenced in its title.
HB 4201 amends Michigan's income tax law to exempt certain retirement benefits from state taxation. It specifically adds a deduction for retirement or pension benefits received from Michigan's public retirement systems (like state employee pensions) or federal public retirement systems. This directly affects Michigan residents who receive these types of public-sector retirement benefits by reducing their taxable income. The change modifies Section 30 of Michigan's Income Tax Act (MCL 206.30) to exclude these benefits from taxable income calculations.
HB 4118 amends Michigan's Drain Code to require that lands owned by the Department of Natural Resources (DNR) be assessed for drainage project costs based on the benefits they receive, similar to how townships, cities, counties, and state highways are assessed. The bill clarifies that drainage costs must be apportioned among these entities according to specific benefit-based formulas, including DNR lands as a distinct category. It also updates public notice requirements for bidding on drainage projects and reviews of cost allocations to ensure transparency. This change directly affects DNR lands and the entities responsible for funding drainage improvements, including local governments and state transportation authorities.
