Budget & Taxes (Sales Tax)

in committee · Michigan · Senate Aug 13, 2025

SB 499: Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 14c.

SB 499 creates a temporary tax holiday for eligible back-to-school items in Michigan. It exempts clothing priced under $100 and school supplies under $20 from use tax when purchased between August 8-24 each year (starting in 2025). To claim the refund, purchasers must submit receipts showing the item details, price, and tax paid within 30 days of purchase. This policy directly affects Michigan residents buying qualifying school items during the designated period, excluding accessories, sports equipment, and business-use items.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary tax exemption for school items, reducing tax burden on lower-income families during back-to-school season, aligning with tax relief indicators.95% confidence

Sub-Topics Sales Tax

Track

passed · Michigan · Senate Jun 10, 2025

SB 229: Sales tax: other; deduction or exclusion and audit of qualified delivery network sales; provide for. Amends sec. 2d of 1933 PA 167 (MCL 205.52d).

This bill requires online marketplaces (like Amazon or Etsy) to collect and pay Michigan's sales tax on all sales they facilitate, regardless of whether the individual seller has a physical presence in the state. It shifts tax audit responsibility from sellers to the marketplace platform, and prohibits class-action lawsuits against platforms over tax overpayments. The bill also creates a new rule allowing delivery services (e.g., food or package delivery apps) to deduct tax they paid to sellers from their own tax bill under specific conditions. These changes apply to all marketplace transactions, including those involving delivery networks.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires online marketplaces to collect sales tax, shifting audit responsibility to platforms and closing tax collection loopholes, increasing state revenue.95% confidence

Sub-Topics Audits & Accountability Sales Tax

Track

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

Track

passed both · Michigan · House Apr 29, 2025

HB 4260: 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 4261'25

HB 4260 redirects $115 million annually from Michigan's 4% general sales tax revenue into the Public Safety and Violence Prevention Fund starting with the 2025-2026 fiscal year. This change affects state budget allocations, shifting funds previously going to the general fund toward public safety and violence prevention programs. The bill amends Michigan's General Sales Tax Act (MCL 205.75) to establish this specific annual transfer, with the amount adjusted based on actual tax collections. It does not create new taxes but reallocates existing revenue streams.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects $115M annual sales tax revenue to public safety fund, increasing funding for public safety programs via budget reallocation per MCL 205.75.95% confidence ✓ Criminal JusticeSupports Criminal JusticeRedirects $115M annually to Public Safety and Violence Prevention Fund, directly funding programs aligned with criminal justice reform and public safety priorities.90% confidence

Sub-Topics Revenue Sales Tax State Budget

Track

passed both · Michigan · House Jun 23, 2026

HB 4025: Sales tax: exemptions; sunset date on exemption for firearm safety devices; extend. Amends sec. 4ll of 1933 PA 167 (MCL 205.54ll).

HB 4025 extends Michigan's sales tax exemption for firearm safety devices until December 31, 2024. It defines "firearm safety devices" as equipment (like gun safes, lockboxes, or trigger locks) designed to prevent unauthorized access or operation of firearms, but excludes display cabinets. Retail sellers must provide written notices to purchasers and post conspicuous signage at points of sale about the tax exemption. The bill also requires the state to annually compensate the school aid fund for any revenue lost due to this exemption.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends sales tax exemption for firearm safety devices, providing tax relief per bill's explicit language on tax policy.90% confidence

Sub-Topics Sales Tax Tax Incentives

Track

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

Track

passed · Michigan · Senate Apr 30, 2026

SB 561: 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: SB 0559'25, SB 0912'26

SB 561 amends Michigan's sales tax law to change how revenue is distributed. It allocates 8.6% of the 4% general sales tax (starting October 1, 2025) to a new Revenue Sharing Trust Fund for distribution to cities, villages, townships, and counties. The bill also directs computer software sales tax revenue ($9-12 million annually) to the Michigan Health Initiative Fund and splits aviation fuel tax revenue (35% to the state aeronautics fund, 65% to airport funds). These changes affect local governments, public schools (via school aid fund allocations), airports, and health programs, without altering the overall tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates 8.6% of sales tax revenue to local governments via Revenue Sharing Trust Fund and directs software tax revenue to Michigan Health Initiative Fund, increasing targeted funding for public services.95% confidence ✓ TransportationSupports TransportationAllocates 65% of aviation fuel tax revenue to airport funds, directly supporting transportation infrastructure.85% confidence

Sub-Topics Business Taxes Revenue Sales Tax Airports Transportation Funding

Track

in committee · Michigan · Senate Sep 24, 2025

SB 582: Taxation: tobacco; tax on certain nicotine and vapor products; establish, and provide for various amendments. Amends title & secs. 2, 3, 6, 6a, 6c, 6d, 7, 8, 9, 11, 12 & 14 of 1993 PA 327 (MCL 205.422 et seq.).

SB 582 expands Michigan's tobacco tax to include certain nicotine and vapor products, specifically targeting consumable materials like vaping liquids and pods (not the devices themselves). It directly affects manufacturers and retailers of these products by requiring them to pay a tax on sales and distribution. Key provisions define "alternative nicotine products" and "consumable materials" to clarify what is taxable, while excluding tobacco cessation products, vapor devices, and authorized FDA-approved products. The bill also updates licensing requirements and collection procedures for the state Treasury Department. This is a tax policy change, not a procedural measure.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tobacco tax to include vaping liquids/pods, generating new state revenue through taxation of consumable materials.95% confidence

Sub-Topics Sales Tax

Track

passed · Michigan · Senate Oct 21, 2025

SB 277: Sales tax: distribution; disposition of money into the game and fish protection account; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 0276'25

SB 277 redirects a portion of Michigan's sales tax revenue to the state's Game and Fish Protection Account. It amends existing law (MCL 205.75) to require that specific sales tax funds be deposited directly into this dedicated account instead of general state funds. This ensures consistent, dedicated funding for wildlife conservation and management programs, including habitat protection and fishery restoration. The bill affects state wildlife management efforts by providing a reliable revenue stream without creating new taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects sales tax revenue to dedicated wildlife conservation account, ensuring consistent funding for essential programs per bill's explicit language.90% confidence ✓ EnvironmentSupports EnvironmentRedirects sales tax revenue to Game and Fish Protection Account for habitat protection and fishery restoration, directly funding environmental conservation programs.95% confidence

Sub-Topics Revenue Sales Tax Conservation Wildlife

Track

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

Track