Budget & Taxes (Sales Tax)

in committee · Michigan · House Feb 5, 2025

HB 4059: Use tax: exemptions; exemption for certain baby and toddler items; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding sec. 4mm.

HB 4059 exempts specific baby and toddler items from Michigan's use tax, meaning parents won't pay tax when purchasing these products. The bill adds 15 categories to the tax exemption list, including cribs, strollers, safety gates, breast pumps, bottles, diapers, and clothing accessories designed for infants or toddlers. It also defines detailed terms like "breast pump collection supplies" to clarify which products qualify for the exemption. This directly affects parents and caregivers buying essential infant products, making them tax-free at point of sale.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts baby/toddler items from use tax, providing direct tax relief to families purchasing essential childcare products.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Michigan · House Sep 18, 2025

HB 4979: Use tax: collections; application of use tax to advertising services; provide for. Amends secs. 3 & 21 of 1937 PA 94 (MCL 205.93 & 205.111) & adds sec. 3g.

HB 4979 amends Michigan's Use Tax Act to apply the 6% use tax to advertising services, which were previously exempt. This change directly affects businesses that provide advertising services within Michigan, requiring them to collect and remit the tax on these services. The bill adds a new section (3g) specifying that advertising services now fall under the use tax, aligning them with other taxable services previously covered under the law. The tax would be calculated based on the price of the advertising service, consistent with existing use tax rates for other services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base by applying 6% use tax to previously exempt advertising services, generating additional state revenue through closed tax loophole.95% confidence

Sub-Topics Sales Tax

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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 Sep 18, 2025

HB 4971: 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.)

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption for promotional merchandise shipped out-of-state, reducing business tax burden under Use Tax Act.95% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Jul 2, 2026

HB 5139: Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c). TIE BAR WITH: HB 5138'25, HB 5140'25

HB 5139 amends Michigan's Use Tax Act to require online platforms (called "marketplace facilitators") to collect and remit sales tax on all taxable sales made through their platforms to Michigan residents, regardless of whether the individual seller has a physical presence in the state. This directly affects large online marketplaces like Amazon or Airbnb, as well as small businesses selling via these platforms. The bill establishes that facilitators - not just the sellers - are legally responsible for tax collection, while providing relief for sellers who use compliant platforms (by filing a simple annual attestation). The key change shifts tax collection responsibility from sellers to platforms, simplifying compliance for small sellers but increasing accountability for digital marketplaces.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loophole by requiring marketplace facilitators to collect use tax, expanding state revenue from online sales and strengthening tax collection for budget purposes.90% confidence

Sub-Topics Sales Tax

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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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in committee · Michigan · House Mar 12, 2025

HB 4210: Sales tax: distribution; disposition of money to the comprehensive transportation fund; modify. Amends sec. 25 of 1933 PA 167 (MCL 205.75).

HB 4210 amends Michigan's sales tax distribution rules to adjust funding for the Comprehensive Transportation Fund. It changes the percentage of sales tax revenue from car-related purchases (fuels, vehicles, parts/accessories sold by dealers/gas stations) allocated to this fund: 27.9% until September 2025, 60% for fiscal year 2025-2026, then 25% annually starting October 2026. The bill also maintains existing allocations for school aid (60%), city revenue sharing (15%), and specifies that 35% of aviation fuel tax revenue goes to the State Aeronautics Fund while 65% funds qualified airports. These changes directly affect businesses selling vehicles, fuel, and parts, and govern how transportation funding is structured.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill temporarily increases transportation funding allocation (60% for FY 2025-2026) from sales tax revenue, directly supporting infrastructure spending within budget management.85% confidence ✓ TransportationSupports TransportationIncreases transportation fund allocation from 27.9% to 60% for FY2025-26, directly advancing infrastructure funding through revised sales tax distribution.95% confidence

Sub-Topics Revenue Sales Tax Airports Transportation Funding

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in committee · Michigan · House Mar 18, 2025

HB 4231: Sales tax: distribution; distribution of certain sales tax revenue into the public safety and violence prevention fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: HB 4232'25

HB 4231 redirects $75 million annually from Michigan's 4% general sales tax (starting fiscal year 2025) into the Public Safety and Violence Prevention Fund. It also specifies that aviation fuel tax revenue must be split 35% to the state aeronautics fund and 65% to qualified airport funds. Additionally, computer software sales tax revenue must fund Michigan's health initiatives at $9-12 million yearly. These changes directly affect state budget allocations, airport operators, and public safety programs without altering tax rates or creating new taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects $75M sales tax revenue to public safety fund and allocates software tax to health initiatives, advancing public service funding.95% confidence ✓ TransportationSupports TransportationBill allocates 65% of aviation fuel tax revenue to qualified airport funds, directly funding transportation infrastructure (airports) as specified in its subjects and summary.90% confidence

Sub-Topics Revenue Sales Tax Airports Transportation Funding

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in committee · Michigan · House Apr 15, 2025

HB 4312: Sales tax: distribution; distribution of sales tax revenue for the revenue sharing trust fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: HB 4311'25

HB 4312 amends Michigan's sales tax distribution by directing 8.62% of the 4% general sales tax revenue to the Revenue Sharing Trust Fund starting October 1, 2025, with funds distributed to cities, villages, townships, and counties. It maintains existing allocations for aviation fuel tax (35% to the state aeronautics fund, 65% to qualified airport funds) and sets a minimum $9 million annual deposit from computer software sales tax into the Michigan Health Initiative Fund. The bill also clarifies adjustments for school aid fund revenue losses due to specific tax exemptions. These changes directly affect local governments, airports, and health programs through revised tax revenue streams.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects 8.62% of sales tax revenue to local governments via Revenue Sharing Trust Fund and mandates $9M annual deposit to health fund, funding public services.95% confidence ✓ HealthcareSupports HealthcareBill mandates $9M annual deposit into Michigan Health Initiative Fund, directly funding health programs per bill summary.92% confidence ✓ TransportationSupports TransportationMaintains aviation fuel tax allocation (65% to airport funds), directly supporting transportation infrastructure as specified in the bill's funding provisions.80% confidence

Sub-Topics Revenue Sales Tax Airports Transportation Funding

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in committee · Michigan · Senate Aug 13, 2025

SB 498: Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & adds secs. 12a & 25a.

SB 498 creates a temporary sales tax holiday for eligible back-to-school items in Michigan, affecting buyers of qualifying clothing and school supplies purchased between August 8-24 annually. It exempts items under $100 (clothing) or $20 (school supplies) from sales tax during this period, allowing buyers to claim refunds via receipts or affidavits within 30 days. Exclusions include clothing accessories, sports gear, protective equipment, and business-use items (except teacher classroom purchases). The holiday applies to all eligible years starting January 1, 2025, through December 31, 2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary tax relief for middle-income families on back-to-school items via sales tax exemptions under $100/$20, aligning with tax relief indicators for lower/middle income.90% confidence

Sub-Topics Sales Tax

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