Budget & Taxes

HB 4180 removes the sales tax requirement for motor fuel sales in Michigan by amending the state tax code. It directly affects gas stations and fuel retailers by exempting motor fuel transactions from the standard sales tax. The bill creates a new tax exemption provision (Section 4gg) in the tax code, specifically excluding motor fuel sales from taxable transactions. This change became effective immediately upon the Governor's approval on October 7, 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 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.

House Bill 4342 amends Michigan's state revenue sharing act, introducing a new condition for withholding state funds from local governments. Beginning October 1, 2025, the state treasurer would withhold all revenue sharing payments from any city, village, township, or county. This would occur if the local government enacts or enforces a law, ordinance, policy, or rule that violates the "local government sanctuary policy prohibition act" or the "county law enforcement protection act." Payments would be withheld for as long as the violating policy remains in effect. This bill is tied to the enactment of House Bills 4338 and 4339.