Bill
HB 5379
Expands Michigan fuel tax reciprocity to a 50‑mile border zone and 11,797 kg GVW, allowing out‑of‑state carriers of raw forest products to operate without IFTA credentials or taxes
Status and key references
- Amends: 1960 PA 124, section 3 (MCL 3.163).
- Enacted: Public Act No. 218 (102nd Legislature). Approved by Governor Jan 17, 2025; effective April 2, 2025.
- Tie‑bar: HB 5747 (amending the Motor Carrier Fuel Tax Act) enacted concurrently (Public Act No. 219 of 2024).
- Sponsor: Rep. Jenn Hill.
Purpose
- To expand and clarify the scope of state-authorized fuel tax “reciprocity” agreements for commercial motor carriers transporting raw forest products across the Michigan border, and to align vehicle weight thresholds with the International Fuel Tax Agreement (IFTA).
Main provisions
- Expands the geographic reach of a “qualified fuel tax reciprocity agreement” from “within 30 air miles” of Michigan’s border to “within not more than 50 air miles.” (30 air miles ≈ 34.5 statute miles; 50 air miles ≈ 57.5 statute miles.)
- Lowers the metric equivalent of the 26,000‑pound gross vehicle weight threshold from 12,000 kilograms to 11,797 kilograms to match IFTA metric parameters. This applies to the definition of “qualified commercial motor vehicle.”
- Confirms that the Department of Treasury (not the Michigan Highway Reciprocity Board) has sole authority to enter into “qualified fuel tax reciprocity agreements” with bordering U.S. states that are IFTA members.
- Specifies that agreements may allow qualifying out‑of‑state motor carriers transporting raw forest products to a Michigan sawmill or factory to operate within the agreed distance without:
- carrying/displaying IFTA credentials or Motor Carrier Fuel Tax Act credentials; or
- paying, reporting, or filing returns under IFTA, the Motor Carrier Fuel Tax Act, or section 5 of the Streamlined Sales and Use Tax Revenue Equalization Act (where the carrier is receiving reciprocal treatment).
- Defines “raw forest products” (e.g., logs, pulpwood, wood chips, sawdust, intermediary lumber, Christmas trees, etc.) and limits “jurisdiction” to bordering U.S. states that are IFTA members.
Who is affected
- Primary: commercial motor carriers transporting raw forest products across the Michigan border and sawmills/factories within the expanded zone.
- State agencies: Department of Treasury (authority to negotiate/enter agreements); administrative impacts on fuel tax enforcement/collection.
- Potential indirect impact: Michigan Transportation Fund revenue could be modestly affected if more mileage/tax apportionment shifts to other jurisdictions under reciprocity agreements.
Fiscal impact
- Nonpartisan analyses indicate no significant fiscal impact on the Department of Treasury or state/local governments. The Department is authorized—but not required—to negotiate agreements; any staffing/resource needs are expected to be manageable under current appropriations.
Procedural timeline (selected)
- Introduced: Nov 14, 2023.
- Passed House: June 11, 2024.
- Passed Senate: Dec 10, 2024.
- Governor approved: Jan 17, 2025.
- Effective date: April 2, 2025.
Practical note
- The change enables Michigan to negotiate amendments (for example, to an existing Michigan–Wisconsin reciprocity) to include a larger border zone—addressing specific local issues (e.g., access for particular mills) while aligning vehicle definitions with IFTA.
Compiled from official sources — confirm details with the bill’s official record.
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