HOUSE BILL NO. 4184

March 06, 2025, Introduced by Reps. Thompson, Hoadley, Bierlein, Johnsen, BeGole, Tisdel, Borton, Kelly, Cavitt, Woolford, Kuhn, St. Germaine, Frisbie, DeBoyer, Markkanen, Meerman, Roth, Jenkins-Arno, Prestin, Alexander, Steele, Bruck, Rigas, Kunse, Martin, Outman and VanderWall and referred to Committee on Transportation and Infrastructure.

"Aeronautics code of the state of Michigan,"

by amending sections 34 and 203 (MCL 259.34 and 259.203), section 34 as amended by 2015 PA 259 and section 203 as amended by 2015 PA 260.

the people of the state of michigan enact:

Sec. 34. (1) The state aeronautics fund is created. All money received from aviation fuel taxes imposed under section 203(1) except the portion to be deposited into the qualified airport fund under section 203(2), the portion of sales and use taxes to be deposited into the state aeronautics fund under section 25 of the general sales tax act, 1933 PA 167, MCL 205.75, and section 21 of the use tax act, 1937 PA 94, MCL 205.111, any money required to be deposited into the state aeronautics fund under section 35(3), and all money received from licensing of schools of aviation, airports, landing fields, airport managers, registration of aircraft and airmen, and from the operation of state operated airports, landing fields, and other aeronautical facilities, must be paid into the state treasury and credited to the state aeronautics fund.

(2) The qualified airport fund is created. All money to be deposited into the qualified airport fund under section 203(2), under section 25 of the general sales tax act, 1933 PA 167, MCL 205.75, and section 21 of the use tax act, 1937 PA 94, MCL 205.111, must be paid into the state treasury and credited to the qualified airport fund.

Sec. 203. (1) A privilege tax at the rate of 3 8 cents per gallon is imposed on all fuel sold or used in producing or generating power for propelling aircraft using the aeronautical facilities on the lands and waters of this state. The tax must be collected and remitted in the same manner and method and at the same time as prescribed by law for the collection of the gasoline tax imposed on all gasoline used in producing or generating power for propelling motor vehicles used on the public highways of this state under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170. For the tax imposed under this subsection, a refund of 1-1/2 cents per gallon must be made to airline operators who show proof within 6 months after purchase that they are operating interstate on scheduled operations.

(2) From the tax collected under subsection (1), 5 cents per gallon must be deposited into the state treasury and be credited as follows:

(a) 35% to the state aeronautics fund.

(b) 65% to the qualified airport fund.

(3) (2) If a person required to register with the department of treasury under section 94 of the motor fuel tax act, 2000 PA 403, MCL 207.1094, is not registered, the person shall not purchase fuel under this act at the rate imposed by subsection (1), but shall pay the applicable rate imposed on motor fuel by section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008.

(4) (3) The tax imposed under subsection (1) is not imposed on aviation fuel if the purchaser has certified in writing to the seller that the aviation fuel is being purchased solely for the purpose of formulating leaded racing fuel as that term is defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004. Aviation fuel qualifying under this subsection must be identified on shipping papers and invoices as "aviation fuel exempt for LRF".

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:

(a) House Bill No. 4183 (request no. H00173'25).

(b) House Bill No. 4182 (request no. H00188'25).

(d) House Bill No. 4180 (request no. H00193'25).

(e) House Bill No. 4185 (request no. H00194'25).

(f) House Bill No. 4186 (request no. H01354'25).

(g) House Bill No. 4187 (request no. H02009'25).