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

Track

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

Track

in committee · Michigan · House Jul 1, 2026

HB 6147: Transportation: motor fuel tax; gas tax holiday; provide for. Amends secs. 8 & 152 of 2000 PA 403 (MCL 207.1008 & 207.1152). TIE BAR WITH: HB 6146'26

This bill amends the Michigan Motor Fuel Tax Act to establish a temporary gas tax holiday that activates if the statewide average price of gasoline reaches $5.00 per gallon before the end of 2026. Under this provision, the tax rate would drop to zero cents per gallon for a three-month period, with the lost revenue automatically transferred from a state stabilization fund to the Michigan Transportation Fund. The legislation also updates the general tax rate structure to include annual adjustments based on inflation or a fixed 5% increase, whichever is lower, while maintaining specific rates for fuel held in storage as of the end of 2025. Additionally, the bill clarifies reporting requirements for fuel suppliers and terminals to ensure accurate tracking of blended products and tax liabilities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides temporary tax relief on motor fuel and transfers lost revenue to the Transportation Fund, advancing fiscal support for transportation.85% confidence ✓ TransportationSupports TransportationBill establishes a gas tax holiday and transfers lost revenue to the Michigan Transportation Fund, directly funding transportation infrastructure.90% confidence

Sub-Topics Sales Tax Transportation Funding

Track

in committee · Michigan · House Jun 16, 2026

HB 6079: Sales tax: distribution; reporting and earmark of auto-related sales tax for the comprehensive transportation fund; provide for. Amends secs. 6 & 25 of 1933 PA 167 (MCL 205.56 & 205.75) & adds sec. 18a.

This bill requires Michigan businesses selling car parts and accessories to separately report and pay sales tax on those specific items starting October 1, 2027. To prepare for this change, the state Department of Treasury must define which products count as car parts by March 31, 2027, and create a new form for businesses to use. Companies will need to set up systems to identify these items at the point of sale and submit distinct payments for them alongside their regular monthly tax returns. The bill amends existing state tax laws to establish these new reporting and payment procedures without changing how the tax revenue is currently distributed.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens state fiscal management by clarifying tax reporting for auto parts, ensuring proper revenue collection for the transportation fund.85% confidence ✓ TransportationSupports TransportationBill establishes a dedicated funding mechanism for the comprehensive transportation fund by taxing auto parts, intended to strengthen transportation infrastructure.85% confidence

Sub-Topics Appropriations Revenue Sales Tax Transportation Funding

Track

in committee · Michigan · Senate Jun 2, 2026

SB 987: Use tax: collections; collection of use tax on utility bills; prohibit. Amends sec. 4n of 1937 PA 94 (MCL 205.94n).

Senate Bill 987 amends Michigan's use tax law to maintain the exemption of electricity, natural gas, and home heating fuels from the additional 2% use tax for residential use. This change ensures that households continue to pay only the standard sales tax rate on these essential utilities rather than the higher rate. The bill directly affects Michigan residents by preserving the current tax treatment of residential energy consumption. Introduced by Senator Jonathan Lindsey on May 20, 2026, the legislation is currently under review by the Committee on Government Operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill maintains exemption of essential utilities from additional use tax, providing tax relief to households and preserving lower tax rates for residential energy consumption.90% confidence ✓ EnergySupports EnergyBill protects residential energy consumers by maintaining exemptions from higher use taxes on essential utilities like electricity and gas.90% confidence

Sub-Topics Sales Tax Oil & Gas

Track

in committee · Michigan · Senate May 21, 2026

SB 998: Use tax: collections; credit for trade-in vehicles; modify. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: SB 0997'26

Senate Bill 998 modifies Michigan's use tax law to clarify how credit for trade-in vehicles is calculated when determining the taxable amount of a purchase. The bill updates the definition of 'purchase price' to ensure that the value of a trade-in vehicle used as part payment is properly excluded from the tax base, aligning the rules with existing provisions for watercraft. This change directly affects vehicle dealers and consumers who trade in their current vehicles to buy new ones, ensuring the tax is applied only to the net cost rather than the full purchase price.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies use tax calculations to exclude trade-in values, preventing double taxation and ensuring consumers pay tax only on the net purchase price, which aligns with fiscal fairness.85% confidence

Sub-Topics Sales Tax

Track

in committee · Michigan · House Apr 15, 2026

HB 5790: Local government: financing; requirements for enterprise data centers; modify. Amends sec. 4ee of 1933 PA 167 (MCL 205.54ee).

This bill modifies Michigan's sales tax laws to provide tax exemptions for equipment used in enterprise data centers, which are facilities that meet specific size and job creation criteria. To qualify for these exemptions, operators must receive a certificate from the Michigan Strategic Fund and submit annual reports detailing employment, investment, and compliance with green building standards. The legislation establishes a formal application process where the fund reviews requests within 120 days and sets a maximum six-year timeline for facilities to meet their operational requirements. Additionally, the bill mandates that the fund report job numbers to state leadership by April 1, 2026, to ensure the program continues to generate the intended economic benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for enterprise data centers, promoting economic development and job creation, which aligns with fiscal management goals.85% confidence ✓ TechnologySupports TechnologyBill provides tax exemptions for enterprise data center equipment and establishes criteria to promote investment and job creation in technology infrastructure.85% confidence

Sub-Topics Sales Tax

Track

in committee · Michigan · Senate Apr 15, 2026

SB 897: Sales tax: exemptions; exemption for certain generators; provide for. Amends sec. 4a of 1933 PA 167 (MCL 205.54a).

Senate Bill 897 amends Michigan's General Sales Tax Act to clarify and expand exemptions for specific entities and agricultural activities. The bill directly affects nonprofit organizations, religious institutions, schools, and agricultural businesses by defining which sales of tangible personal property are not subject to sales tax. Key provisions include explicit exemptions for parent cooperative preschools, expanded definitions for agricultural machinery and equipment used in farming, and specific rules for newspapers and periodicals. The legislation also clarifies that certain structures like greenhouses and portable grain bins are not considered real estate for tax purposes if they can be disassembled without affecting their functionality.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands sales tax exemptions for nonprofits, schools, and agriculture, reducing tax burdens on essential services and specific sectors.85% confidence ✓ EducationSupports EducationBill expands sales tax exemptions for schools and preschools, effectively reducing costs and protecting educational funding.75% confidence

Sub-Topics Sales Tax

Track

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

Track

in committee · Michigan · Senate May 14, 2026

SB 965: Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c).

Senate Bill 965 updates Michigan's use tax laws to clarify registration requirements for businesses and strengthen rules for online marketplace facilitators. The bill mandates that foreign corporations must register for use tax before obtaining permission to do business in the state and requires aircraft lessors to pay use tax on lease receipts instead of sales tax on the full property cost. It also defines marketplace facilitators as entities that must collect and remit use tax on sales made by third-party sellers on their platforms, even if those sellers do not have a physical presence in Michigan. Additionally, the bill limits the ability to sue marketplace facilitators for overpaid taxes and protects them from liability if sellers fail to provide accurate information about their transactions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens use tax laws, closes loopholes for foreign corporations and marketplace facilitators, and ensures aircraft lessors pay appropriate taxes, promoting fiscal responsibility.90% confidence

Sub-Topics Sales Tax

Track