Budget & Taxes (Sales Tax)

in committee · Michigan · House Aug 27, 2026

HB 6270: Sales tax: exemptions; exemption for building materials purchased for the construction of a new single-family residence; provide for. TIE BAR WITH: HB 6269'26

Michigan House Bill 6270 creates a temporary sales tax exemption for the purchase of building materials used to construct new single-family homes or small multi-family dwellings with up to four units. This two-year benefit applies to both homeowners and construction companies, provided that a valid building permit is in place at the time of the material sale. The bill requires state officials to submit annual reports to the legislature detailing how many new homes were built, jobs created, and the impact on state tax revenue due to this exemption.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates a temporary sales tax exemption for building materials, directly reducing state tax revenue and limiting fiscal resources.85% confidence

Sub-Topics Revenue Sales Tax Tax Incentives

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in committee · Michigan · House Aug 27, 2026

HB 6269: Use tax: exemptions; exemption for building materials purchased for the construction of a new single-family residence; provide for. TIE BAR WITH: HB 6270'26

Michigan House Bill 6269 amends the state's use tax act to exempt qualified building materials from taxation when purchased for the construction of new single-family residences or small multi-family homes with up to four units. This exemption applies to both home owners and developers, as well as contractors building for others, provided a valid building permit is in place at the time of purchase. The bill includes safeguards that require taxpayers to pay back any exempted taxes if the materials are not used for the intended residence, if the project is abandoned within 15 months, or if the building permit expires before a certificate of occupancy is issued. Additionally, the state Department of Treasury must submit annual reports to the legislature detailing how this tax break affects housing construction, job creation, and state revenue.

Topics ✗ Budget & TaxesOpposes Budget & TaxesThe bill creates a specific use tax exemption for building materials, which reduces state tax revenue and provides a fiscal benefit to home builders and developers.85% confidence ✓ HousingSupports HousingExempts building materials from use tax for new single-family and small multi-family homes, lowering construction costs to encourage housing development.85% confidence

Sub-Topics Revenue Sales Tax Tax Incentives Building Codes

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in committee · Michigan · Senate May 19, 2026

SB 981: Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).

Senate Bill 981 amends Michigan's General Sales Tax Act to clarify how trade-in values are treated when calculating sales tax on personal electronics. The bill explicitly includes the credit for any trade-in in the definition of 'sales price,' ensuring that the value of an old item traded in is counted as part of the taxable amount. This change directly affects consumers buying new electronics and retailers selling them, requiring the trade-in value to be included in the total consideration for tax purposes. The legislation focuses on defining specific terms like 'sales price' and 'gross proceeds' to ensure consistent application of the tax law.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill increases sales tax burden by requiring trade-in values to be included in the taxable amount, effectively raising costs for consumers.85% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Apr 23, 2026

HB 5880: Taxation: excise taxes; excise tax on certain services; provide for. Creates new act. TIE BAR WITH: HB 5878'26, HB 5879'26, HB 5873'26, HB 5874'26, HB 5875'26, HB 5876'26, HB 5877'26

This Michigan bill proposes a new 6% excise tax on specific services purchased for use within the state, starting in January 2027. The tax applies to service providers with a physical or economic presence in Michigan, who must register with the Department of Treasury and collect the tax from customers, while out-of-state providers without such a presence would require the customer to pay the tax directly. Services already subject to existing sales or use taxes are exempt from this new fee, and the law establishes registration requirements, monthly filing deadlines, and penalties for non-compliance. Revenue generated from the tax will be distributed according to provisions outlined in the act, which also creates specific funds for administrative purposes.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill introduces a new 6% excise tax on services, increasing the tax burden on consumers and businesses.95% confidence

Sub-Topics Sales Tax

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in committee · Michigan · Senate Feb 4, 2026

SB 777: Sales tax: other; exemptions for certain watercraft; provide for. Amends secs. 1 & 4a of 1933 PA 167 (MCL 205.51 & 205.54a).

This bill amends Michigan's sales tax law to maintain an existing exemption for watercraft trade-ins. It allows buyers to apply a credit for the agreed-upon value of a titled or documented watercraft (documented by the U.S. Coast Guard) when purchasing a new or used watercraft from a dealer, reducing the taxable sales price. The credit must be separately stated on the invoice and does not apply to leases or rentals. This directly affects watercraft dealers and customers trading in boats, as it lowers the sales tax owed on the new purchase.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates sales tax credit for watercraft trade-ins, reducing taxable revenue. Weakens state tax base, aligning with 'oppose' indicators.85% confidence

Sub-Topics Procurement Sales Tax

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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 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 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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in committee · Michigan · House Jun 18, 2026

HB 5168: Use tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding sec. 4mm.

HB 5168 exempts use tax on tangible personal property (like equipment or materials) that becomes a structural or integral part of qualifying large agricultural processing facility projects in Michigan. It directly affects agricultural businesses and contractors working on projects requiring at least $100 million in capital investment for construction, expansion, or retooling of facilities that process livestock, crops, or plant products (excluding forest products). The exemption applies only to property permanently affixed to the facility or its infrastructure, not to general use. This amendment modifies Michigan’s Use Tax Act to provide tax relief for significant agricultural infrastructure investments.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts large agricultural projects from use tax, reducing state tax revenue and providing targeted tax relief to businesses, aligning with tax break creation for specific entities.95% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Oct 28, 2025

HB 5129: Sales tax: exemptions; exemptions for the sale of investment coins and bullion; modify. Amends sec. 4s of 1933 PA 167 (MCL 205.54s). TIE BAR WITH: HB 5130'25, HB 5129'25

HB 5129 updates Michigan's sales tax law to exempt purchases of investment coins and bullion from tax. It expands the definition of "bullion" to include gold, silver, or platinum films/leafs (50%+ metal content) used as currency (but not legal tender) starting January 1, 2026, while maintaining the 90% purity standard for other bullion. This directly affects buyers of these specific precious metal products, including new film-based items, by removing sales tax. The bill requires passage of companion bill HB 5130 to take effect.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts investment coins/bullion from sales tax, creating tax break for wealthy investors while reducing state revenue, aligning with 'oppose' indicators.92% confidence

Sub-Topics Sales Tax

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