Federal & State Regulations | Motor carrier fuel/Highway use/Mileage tax - Michigan

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
Has three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

Michigan taxes only special diesel and biodiesel under IFTA.

Charter buses are not required to report fuel tax in Michigan, however, they must register under IFTA and pay the decal fee. While they do not have to report miles to Michigan they must report miles for other member jurisdictions that do require buses to report.

IFTA fees

IFTA license and decals, no fee

Temporary decal permit

A 30-day temporary IFTA decal permit is available for no fee through the state office. To qualify for a temporary permit, a carrier must already have a valid IFTA license.

Biodiesel fuel

Michigan's tax rate on diesel fuel blends containing at least 5 percent biodiesel is $0.15 per gallon.

Biodiesel purchased and consumed in Michigan, or purchased in another jurisdiction and consumed in Michigan, must still be reported on the IFTA biodiesel schedule. Qualifying biodiesel (B05-B00) purchased in Michigan and consumed in another jurisdiction, along with the related mileage, must also be reported on the biodiesel schedule (form IFTA-101).

For more information, contact the Michigan Department of Treasury, Customer Contact Division, Special Taxes, at (517) 636-4580.

Fuel use tax

Michigan carriers operating intrastate vehicles previously required to apply for a fuel license and display a fuel decal, are no longer required to do so after April 1, 2003.

Mileage/Highway use taxes

Michigan does not impose highway use taxes.

Tax refunds or credits

IFTA

Information regarding credits or refunds under IFTA is included in the IFTA Agreement manual.

In Michigan, qualified and non-qualified motor vehicles are charged $0.15 per gallon on diesel fuel and on diesel blends that are at least 5% biodiesel (effective January 1, 2008).

PTO/Reefer fuel

Michigan does allow for refunds on tax-paid fuel used in reefer or power-take-off equipment, providing the carrier paid tax on the fuel. While a refund permit is not required, refunds must be requested within 18 months from date of purchase. A Form 680-1 Claim for Refund of Motor Fuel Tax, together with the original fuel receipts, must be submitted for all refund requests.

['Fleet Taxes']

['Highway use - Mileage tax']

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Motor carrier fuel/Highway use/Mileage tax - Michigan