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HB 5966

Transportation: motor fuel tax; gas tax holiday; provide for. Amends secs. 8 & 152 of 2000 PA 403 (MCL 207.1008 & 207.1152).

2025-2026 Regular Session Introduced by Brian BeGole and 22 co-sponsors

The bill would temporarily suspend or reduce Michigan motor fuel taxes to create a gas tax holiday, lowering pump prices during the specified period while addressing revenue gaps f

bill electronically reproduced 05/13/2026
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WeVote Research Nonpartisan
Bill Summary · HB 5966

Overview

HB 5966 (2025-2026) from Michigan aims to address transportation funding by altering motor fuel taxes and establishing a gas tax holiday. Introduced May 13, 2026, and referred to the Appropriations Committee, the bill is sponsored by Rep. Angela Rigas with a large group of co-sponsors. The text provided does not include the full bill language, so this summary highlights the bill’s stated purpose and anticipated provisions based on the title and context.

Purpose and Intent

  • Provide for a gas tax holiday related to the motor fuel tax.
  • Adjust or modify the motor fuel tax structure to influence transportation funding and consumer fuel prices.
  • Potentially reallocate or manage revenue targeted at transportation priorities in Michigan.

Key Provisions (as inferred from title and typical tax-holiday legislation)

  • Gas Tax Holiday: Temporarily suspends or reduces motor fuel taxes for a defined period, reducing the per-gallon tax paid by consumers at the pump.
  • Motor Fuel Tax Adjustments: Changes to how motor fuel taxes are assessed, collected, or redistributed, which may include:
    • Short-term tax rate reductions or exemptions.
    • Temporary suspension or modification of certain tax provisions to alleviate consumer costs.
    • Specifications on duration (start and end dates) and eligibility (which fuels or vehicles are covered).
  • Revenue and Fiscal Implications: Provisions to account for the shortfall in fuel tax revenue during the holiday, including potential offsets, emergency funding, or transfers to ensure transportation projects remain funded.
  • Compliance and Administration: Administrative rules for tax collection during the holiday period, penalties for non-compliance, and reporting requirements to track impact and revenue shortfalls.

Who or What Would Be Affected

  • Consumers: Direct benefit from a reduced or suspended motor fuel tax at the point of sale during the holiday period.
  • Transportation Sector: State transportation funding mechanisms and planned road, bridge, and infrastructure projects may be affected by temporary revenue reductions; potential need for alternative funding sources or project pacing.
  • Motorists and Businesses: Any taxes or fees tied to motor fuel sales could see temporary changes, impacting pricing and budgeting for fleets and everyday drivers.
  • State Budget and Tax Administration: State treasury and Department of Treasury/Taxation agencies would implement and monitor the temporary tax changes and manage any resulting revenue shortfalls.

Procedural and Timeline Aspects

  • Introduction: May 13, 2026.
  • Referral: Committee on Appropriations (as of 2026-05-13).
  • Likely Next Steps: Legislative hearings in Appropriations, potential amendments, votes in House, and consideration by Senate (not specified in provided information).
  • Sunset/Duration: The bill would specify a temporary period for the gas tax holiday; exact dates not provided in current materials.

Key Considerations for Evaluation

  • Fiscal Impact: The temporary tax relief reduces state revenue from motor fuel taxes during the holiday. How will Michigan offset this to protect transportation funding?
  • Economic Impact: Short-term relief for consumers at the pump; potential indirect effects on infrastructure funding and project timelines.
  • Equity and Reach: Whether the tax holiday applies to all motor fuels equally and how it affects rural vs. urban residents and commercial fleets.
  • Administrative Feasibility: Complexity of implementing a temporary tax suspension and ensuring timely collection and refunds if applicable.

If you can provide the bill’s full text or fiscal note, I can deliver a more detailed, line-by-line summary of provisions, specific dates, dollar amounts, and stipulated sunset or renewal conditions.

Compiled from official sources — confirm details with the bill’s official record.

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