Budget & Taxes (Procurement)

in committee · Michigan · House Feb 5, 2025

HB 4058: Sales tax: exemptions; exemption for certain baby and toddler items; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm.

HB 4058 exempts specific baby and toddler items from Michigan's sales tax, directly affecting parents and caregivers purchasing these products. The bill adds 15 categories of items to the tax exemption list, including cribs, strollers, safety gates, breast pumps (and their collection/storage supplies), baby bottles, diapers, and clothing. Key provisions define eligible items precisely - such as excluding general bottles from breast pump kits unless sold together - and clarify that exemptions apply to both new and reusable products like diapers. This policy change reduces costs for families buying essential childcare items by removing the sales tax burden.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts baby/toddler essentials from sales tax, providing direct tax relief for lower/middle-income parents purchasing necessities.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Michigan · House Nov 13, 2025

HB 5257: Use tax: exemptions; exemption for purchase of vehicle by disabled veteran; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 4hh. TIE BAR WITH: HB 5274'25

HB 5257 exempts qualified disabled veterans from Michigan's use tax when purchasing a vehicle for personal use. This applies to veterans meeting the definition in Michigan's General Property Tax Act (MCL 211.7b), which requires a service-connected disability rating. The exemption begins January 1, 2026, and covers the full purchase price of the vehicle. The bill amends the Use Tax Act to add this specific exemption while maintaining other tax collection provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts disabled veterans from use tax, providing targeted tax relief for vulnerable groups per tax relief indicators in Budget & Taxes policy.95% confidence ✓ VeteransSupports VeteransExempts disabled veterans from use tax on vehicle purchases, directly expanding benefits for veterans with service-connected disabilities per MCL 211.7b.95% confidence

Sub-Topics Procurement Veteran Healthcare

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in committee · Michigan · House Nov 13, 2025

HB 5274: Sales tax: exemptions; exemption for purchase of vehicle by disabled veteran; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & adds sec. 4hh. TIE BAR WITH: HB 5257'25

HB 5274 creates a sales tax exemption for qualified disabled veterans purchasing vehicles. Beginning January 1, 2026, disabled veterans who meet the state's definition (as outlined in the General Property Tax Act) will not pay the 4% state sales tax on new or used vehicles bought for their personal use and registered in their name. This directly affects disabled veterans seeking to purchase a vehicle for personal transportation. The exemption applies specifically to the sales tax on the vehicle itself, not other taxes or fees.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates sales tax exemption for disabled veterans, providing direct tax relief. Aligns with support indicators for lower-income tax measures under Budget & Taxes policy.95% confidence ✓ VeteransSupports VeteransExempts disabled veterans from 4% sales tax on vehicle purchases, directly reducing costs for essential transportation per bill's explicit language.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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passed both · Michigan · House Jun 23, 2026

HB 4026: Use tax: exemptions; sunset date on exemption for firearm safety devices; extend. Amends sec. 4ll of 1937 PA 94 (MCL 205.94ll).

HB 4026 exempts firearm safety devices from Michigan's sales and use tax through December 31, 2024, directly affecting gun owners purchasing these devices. The bill defines "firearm safety devices" as trigger locks, secure storage containers (like gun safes or lockboxes requiring keys/combinations), but excludes display cases. Retail sellers must provide written notices to buyers and post visible signage at points of sale explaining the tax exemption. This is a temporary measure with a sunset date, not a permanent policy change.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts firearm safety devices from sales tax, providing tax relief per bill's explicit language on tax exemptions.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Michigan · House May 13, 2025

HB 4387: Individual income tax: credit; credit for qualified expenditures attributable to supplies, repairs, and restoration after a declared state of emergency. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 282.

HB 4387 creates a temporary 2025 income tax credit for Michigan residents affected by a severe winter storm and ice storm declared a state of emergency by Governor Whitmer on March 31, 2025. It allows eligible taxpayers to claim a credit of up to $5,000 for qualified expenses directly related to repairing or restoring homes, property, or businesses damaged by the emergency - such as purchasing generators, chainsaws, or building materials. To qualify, taxpayers must reside in the declared emergency area, provide proof of expenses (including federal ID and property address), and confirm expenses weren’t reimbursed. The credit applies only to the 2025 tax year and cannot exceed the taxpayer’s total tax liability for that year.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary tax credit for disaster recovery expenses, providing tax relief to affected residents and promoting fiscal relief during emergency repairs.95% confidence

Sub-Topics Procurement Tax Credits

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in committee · Michigan · House Sep 18, 2025

HB 4972: Sales tax: exemptions; sale of baby diapers; exempt. Amends sec. 4a of 1933 PA 167 (MCL 205.54a).

HB 4972 adds baby diapers to Michigan's list of sales tax-exempt items under the General Sales Tax Act (MCL 205.54a). The bill specifically exempts the sale of tangible personal property (like diapers) from sales tax when sold to consumers. This change directly affects retailers selling diapers and consumers purchasing them, as they will no longer pay state sales tax on these items. The exemption aligns with existing tax rules for certain essential goods but specifically targets diapers as a new category. The bill amends Section 4a(1)(a) of the General Sales Tax Act to include this provision.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts diapers from sales tax, providing tax relief for consumers, aligning with essential goods tax policies and supporting lower-income families.95% confidence

Sub-Topics Procurement Sales Tax

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passed both · Michigan · House Oct 23, 2025

HB 4376: Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).

HB 4376 modifies Michigan's sales tax rules for trade-in values on vehicle purchases. It increases the annual adjustment for the maximum deductible trade-in value from $500 to $1,000, starting January 1, 2020. This change allows car buyers trading in vehicles to reduce the taxable sales price by more when purchasing new or used cars from dealers. The provision applies only when the trade-in value is separately stated on the sales invoice.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases sales tax exemption for vehicle trade-ins, reducing taxable amount and providing consumer tax relief under Budget & Taxes framework.95% confidence

Sub-Topics Procurement Sales Tax

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signed · Michigan · House Oct 8, 2025

HB 4181: Streamline sales and use tax: exemptions; tax on motor fuel; exclude. Amends secs. 3 & 5 of 2004 PA 175 (MCL 205.173 & 205.175). TIE BAR WITH: HB 4180'25, HB 4182'25, HB 4183'25, SB 0578'25

HB 4181 removes a sales tax exemption for certain motor fuel purchases by amending Michigan's 2004 tax code (MCL 205.173 & 205.175). The bill directly affects businesses and consumers purchasing motor fuel by eliminating an existing tax exemption, meaning these purchases will now be subject to sales tax. It streamlines the tax code by clarifying that motor fuel is no longer exempt from sales tax under the specified sections. The bill was enacted on October 7, 2025, and is now law as Public Act 18 of 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves sales tax exemption for motor fuel, increasing state revenue and closing a tax loophole per amended tax code sections.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives