Budget & Taxes (Sales Tax)

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

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in committee · Michigan · House Sep 29, 2025

HB 5085: Marihuana: taxation; excise tax on marihuana; eliminate. Amends secs. 3 & 13 of 2018 IL 1 (MCL 333.27953 & 333.27963).

HB 5085 eliminates an excise tax on marijuana sales by amending sections 3 and 13 (MCL 333.27953 and 333.27963) of Michigan's 2018 Marijuana Regulation and Taxation Act. This change directly affects licensed marijuana businesses and consumers by removing a specific tax previously applied to marijuana products. The bill modifies the statutory definitions and tax provisions within the existing regulatory framework without altering other aspects of marijuana licensing or sales rules. It is currently in the early stages of the legislative process, having been introduced and referred to committee on September 26, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates excise tax on marijuana, reducing tax revenue and weakening the tax policy framework within the regulatory act.95% confidence

Sub-Topics Sales Tax

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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

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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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in committee · Michigan · House Oct 28, 2025

HB 5130: Use tax: exemptions; exemptions for the sale of investment coins and bullion; modify. Amends sec. 4u of 1937 PA 94 (MCL 205.94u). TIE BAR WITH: HB 5131'25, HB 5129'25

HB 5130 exempts the storage, use, or consumption of investment coins and bullion from Michigan's use tax, effective July 7, 1999. It directly affects individuals and businesses buying or selling qualifying precious metals, including collectible coins and bullion (gold, silver, or platinum in bulk form). The bill updates the definition of "bullion" to include gold/silver/platinum leaf, foil, or film with 50%+ metal content (starting January 1, 2026), provided it's used as currency but isn't legal tender. Investment coins are defined as government-issued coins with market value exceeding face value.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts investment coins/bullion from use tax, providing tax relief for individuals/businesses dealing in precious metals.95% confidence

Sub-Topics Sales Tax

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passed both · Michigan · House Apr 15, 2025

HB 4185: Sales tax: distribution; distribution of revenue; modify. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4186'25, HB 4187'25, HB 4184'25

HB 4185 changes how Michigan's general sales tax revenue is distributed. It directs 15% of the 4% sales tax to cities, villages, and townships through the Glenn Steil Revenue Sharing Act. Sixty percent goes to the state school aid fund (including all 2% tax from aviation fuel sales), while 27.9% of 25% from vehicle/fuel sales funds the transportation system. Additionally, it requires $9-12 million annually from computer software sales to the Michigan health initiative fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects 60% of sales tax to school aid, 27.9% to transportation, and $9-12M to health initiative, strengthening public service funding without tax increases.95% confidence ✓ EducationSupports EducationDirects 60% of sales tax revenue to state school aid fund, explicitly increasing K-12 funding allocation without restrictions.95% confidence ✓ TransportationSupports TransportationDirectly allocates 27.9% of vehicle/fuel sales tax revenue to fund Michigan's transportation system, meeting funding criteria for support.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget School Funding Airports Transportation Funding

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in committee · Michigan · House Jun 18, 2026

HB 4119: Sales tax: exemptions; purchase of certain aircraft and aviation equipment; exempt. Amends sec. 4x of 1933 PA 167 (MCL 205.54x).

HB 4119 exempts sales of large aircraft (over 6,000 pounds) and certain parts/materials attached to them from Michigan's sales tax when used by commercial airlines for passenger or cargo transport. It specifically applies to domestic air carriers operating under federal aviation rules, covering both new aircraft purchases and maintenance-related transactions. Key conditions include requiring aircraft to leave Michigan within 15 days of temporary use (e.g., for evaluation or repairs) and ensuring they were not based or registered in Michigan before or after the transaction. This policy change directly affects commercial airlines and aircraft sellers, reducing tax liability on qualifying equipment purchases and maintenance services.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates sales tax exemption for commercial aviation, reducing state tax revenue. Weakens tax base rather than strengthening it.90% confidence ✓ TransportationSupports TransportationExempts sales tax on large aircraft purchases for commercial airlines, reducing costs and supporting aviation transportation operations per bill's intent.90% confidence

Sub-Topics Sales Tax Airports Freight

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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