Use tax: exemptions; exemption for building materials purchased for the construction of a new single-family residence; provide for. TIE BAR WITH: HB 6270'26

Michigan House Bill 6269 amends the state's use tax act to exempt qualified building materials from taxation when purchased for the construction of new single-family residences or small multi-family homes with up to four units. This exemption applies to both home owners and developers, as well as contractors building for others, provided a valid building permit is in place at the time of purchase. The bill includes safeguards that require taxpayers to pay back any exempted taxes if the materials are not used for the intended residence, if the project is abandoned within 15 months, or if the building permit expires before a certificate of occupancy is issued. Additionally, the state Department of Treasury must submit annual reports to the legislature detailing how this tax break affects housing construction, job creation, and state revenue.