Energy (Electric Vehicles)

HB 5435 adds a tax on electricity used to power commercial vehicles in Michigan, directly affecting businesses that operate electric trucks for commercial hauling on public roads. The bill requires these "electric fuel commercial users" to pay a tax calculated based on miles driven, using a formula comparing electricity use to traditional motor fuel rates. Businesses must obtain a $50 license and pay this tax through the same system used for motor carrier fuel taxes, replacing all other state taxes on electric fuel use for these vehicles. The tax does not apply to personal electric vehicle use or non-commercial vehicles.

HB 5434 amends Michigan's Motor Carrier Fuel Tax Act to add a 15-cent tax per gallon equivalent on electric fuel used by motor carriers operating qualified commercial vehicles on Michigan roads. The tax applies to large trucks and vehicles meeting specific weight or axle criteria (e.g., 3+ axles or over 26,000 pounds gross weight) and must be paid quarterly alongside existing taxes on motor fuel and alternative fuel. This bill directly affects commercial trucking companies and motor carriers operating in Michigan, including those in interstate commerce. The change extends the existing fuel tax framework to include electric fuel, aligning it with current taxation practices for other fuel types.