Use tax: exemptions; sale of baby diapers; exempt. Amends sec. 4 of 1937 PA 94 (MCL 205.94).

HB 4971 amends Michigan's Use Tax Act to clarify that promotional merchandise (including items like baby diapers) transferred to out-of-state customers via redemption offers qualifies for resale exemptions. It specifically updates Section 4(c)(i) to include promotional merchandise shipped outside Michigan as exempt from use tax, directly affecting retailers and businesses selling such items to out-of-state customers. The key mechanism expands existing resale exemptions to cover promotional goods sent to customers in other states, aligning with how businesses handle cross-state promotions. This change does not create new exemptions but clarifies existing rules for promotional sales. (Note: The bill title mentions "baby diapers," but the actual amendment applies broadly to all promotional merchandise, not specifically diapers.)