Budget & Taxes (Sales Tax)

in committee · Michigan · Senate Feb 4, 2026

SB 776: Use tax: other; exemptions for certain watercraft; provide for. Amends secs. 2 & 4 of 1937 PA 94 (MCL 205.92 & 205.94).

SB 776 amends Michigan's Use Tax Act to update exemptions for watercraft trade-ins. It specifically clarifies that buyers can apply the agreed-upon value of a *documented* watercraft (one registered with the U.S. Coast Guard) as credit toward the purchase price of a new watercraft from a dealer. This change directly affects watercraft buyers, dealers, and the state’s tax collection process by allowing the trade-in value to reduce taxable purchases, provided the value is separately stated on the invoice. The bill does not change the $2,000 annual credit limit for watercraft trade-ins established in prior law.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill allows trade-in value credit for watercraft, reducing taxable purchases and state tax revenue, directly weakening fiscal collection.90% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Mar 10, 2026

HB 5479: Streamline sales and use tax: other; taxation of electric fuel under the IFTA; provide for. Amends sec. 4gg of 1933 PA 167 (MCL 205.54gg).

HB 5479 exempts "eligible fuel" (including motor fuel, alternative fuel, and leaded racing fuel) from Michigan's general sales tax starting January 1, 2026. This directly affects businesses selling these fuels and consumers purchasing them for eligible uses, excluding specific cases like aviation fuel or fuel used for heating. The bill explicitly excludes electric fuel used in vehicles if it's already taxed under the Motor Carrier Fuel Tax Act or Motor Fuel Tax Act. It defines key terms like "electric fuel" and "eligible fuel" based on existing tax acts, with no exemption for fuel used in aircraft or residential/commercial heating systems.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts eligible fuels from sales tax, reducing tax burden for businesses/consumers on specific fuel purchases per bill's explicit tax relief provision.90% confidence

Sub-Topics Procurement Sales Tax

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in committee · Michigan · House Mar 3, 2026

HB 5496: Taxation: excise taxes; excise tax on the purchase of wireless communications devices; require for purchases of devices primarily for the use of individuals under 18 years of age. Creates new act.

HB 5496 imposes a 32% excise tax on the purchase price of wireless communications devices (like smartphones) sold primarily for use by individuals under 18 years old, effective January 1, 2026. The tax is collected at the point of sale by retailers, similar to other state taxes, and applies only to devices that support internet, apps, or multimedia - excluding basic telephones. All tax revenue flows into a new "Children's Mental Health and Safety Fund" in the state treasury, which must be used exclusively for mental health and safety programs for children as defined by existing law. The fund’s money remains available annually and cannot be redirected to the general state budget.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new excise tax to fund Children's Mental Health and Safety Fund, directly increasing state revenue for public services.95% confidence ✓ HealthcareSupports HealthcareBill creates Children's Mental Health Fund using tax revenue, directly funding mental health services under healthcare topic per bill's explicit purpose.95% confidence

Sub-Topics Revenue Sales Tax State Budget Mental Health

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in committee · Michigan · House Dec 18, 2025

HB 5397: Use tax: exemptions; data center exemption; eliminate. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & repeals sec. 4cc of 1937 PA 94 (MCL 205.94cc).

HB 5397 eliminates a tax exemption for data center equipment under Michigan's Use Tax Act. It repeals Section 4cc, which previously allowed data center businesses to claim an exemption from use tax on equipment purchases. This change means data center operators will now pay the standard use tax on qualifying equipment instead of claiming the exemption. The bill directly affects data center businesses that previously utilized this tax exemption.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates data center tax exemption, closing a loophole to increase state revenue under use tax policy.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Michigan · House Mar 10, 2026

HB 5433: Use tax: definitions; definition of qualified commercial motor vehicle; modify. Amends secs. 2 & 4a of 1937 PA 94 (MCL 205.92 & 205.94a). TIE BAR WITH: HB 5434'25, HB 5435'25

HB 5433 modifies Michigan's use tax law to clarify how trade-in values for vehicles affect taxable purchases. It specifically updates Section 2(f)(xii) to set annual limits on credit for traded-in motor vehicles: $2,000 through 2018, then increasing by $500 yearly to $5,000 starting January 1, 2019. This directly affects businesses and individuals buying new or used vehicles who trade in older models, as it caps the amount subtracted from the purchase price for tax calculation purposes. The bill ensures consistent application of these limits for both new and used vehicle transactions, without changing the overall tax rate.

Topics ✓ Budget & TaxesSupports Budget & TaxesCaps trade-in credit for vehicle purchases, increasing state tax revenue by limiting deductions, aligning with fiscal responsibility.90% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Dec 18, 2025

HB 5396: Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee).

HB 5396 eliminates a sales tax exemption for data center equipment in Michigan. The bill repeals Section 4ee of the General Sales Tax Act (MCL 205.54ee), which previously allowed data centers to avoid paying the standard 4% sales tax on equipment purchases. This change directly affects data center businesses operating in Michigan, requiring them to pay sales tax on qualifying equipment starting when the bill takes effect. The policy change removes a specific tax break, aligning data center equipment purchases with standard sales tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates tax exemption for data centers, closing a loophole to increase state sales tax revenue per bill's repeal of Section 4ee.90% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Michigan · House Mar 3, 2026

HB 5318: Sales tax: exemptions; certain exemptions; modify. Amends secs. 4o & 4q of 1933 PA 167 (MCL 205.54o & 205.54q).

HB 5318 modifies Michigan's sales tax exemptions for fundraising by specific organizations. It raises the annual sales cap for tax-exempt fundraising events from $25,000 to $75,000 per event (adjusted for inflation) for schools, churches, hospitals, parent cooperatives, and nonprofits with 501(c)(3)/(4) status. It also increases the cap for veterans' groups (501(c)(19) organizations) from $25,000 to $75,000 per event, with both limits adjusted yearly using the Consumer Price Index. The bill affects qualifying nonprofits, schools, and veterans' organizations conducting fundraising sales under these exemptions.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExpands tax exemptions for nonprofits/veterans' groups, reducing state sales tax revenue by raising annual caps from $25k to $75k.85% confidence ✓ VeteransSupports VeteransIncreases sales tax exemption cap for veterans' groups (501(c)(19)) from $25k to $75k per event, directly expanding their fundraising capacity and financial support.95% confidence

Sub-Topics Sales Tax

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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 Sep 16, 2025

HB 4886: Occupations: hearing aid; references to hearing aid dealers in use tax act; revise. Amends sec. 2b of 1937 PA 94 (MCL 205.92b). TIE BAR WITH: HB 4883'25

HB 4886 amends the Use Tax Act (MCL 205.92b) to clarify that a "prescription" for hearing aids includes orders from licensed hearing aid dealers or salespersons. This directly affects licensed hearing aid dealers by allowing them to issue prescriptions under tax law, aligning their authority with medical professionals for tax purposes. The change specifically updates the definition of "prescription" in section 2b to include orders from hearing aid dealers licensed under Michigan's occupational code. This is a technical adjustment to the tax code's definitions, not a new tax or benefit.

Topics ✗ Budget & TaxesOpposes Budget & TaxesClarifies tax exemption for hearing aid dealers, reducing state revenue by expanding prescription eligibility under Use Tax Act.90% confidence

Sub-Topics Sales Tax

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