The bill amends the General Sales Tax Act to exempt the sale of firearm safety devices from sales and use tax in Michigan. This exemption applies to the retail sale or transfer of firearms, and sellers are required to provide written notice to purchasers and display a conspicuous notice at points of sale indicating that firearm safety devices are exempt from the state's sales tax. The bill specifies that a "firearm safety device" includes equipment designed to prevent unauthorized access to or operation of a firearm, such as locks or safes, but excludes display cabinets primarily intended for showcasing firearms.

Additionally, the bill expresses the legislature's intent to ensure that the state school aid fund is fully compensated for any revenue losses resulting from this tax exemption. This provision aims to maintain funding for education despite the potential decrease in tax revenue due to the new exemption for firearm safety devices.

Statutes affected:
Substitute (H-2): 205.54
House Introduced Bill: 205.54
As Passed by the House: 205.54