The bill amends the Use Tax Act to exempt the storage, use, or consumption of firearm safety devices from the sales and use tax in Michigan. Specifically, it establishes that this exemption applies to the retail sale or transfer of firearms, requiring sellers to provide written notice to purchasers and to display a conspicuous notice at points of sale. The notice informs customers that the state has exempted firearm safety devices from sales and use tax.

Additionally, the bill defines "firearm safety device" as equipment designed to prevent unauthorized access to or operation of a firearm, including devices that deactivate the firearm or secure it in a safe manner. However, it explicitly excludes display cabinets primarily designed for showcasing firearms. The legislation also expresses the intent of the legislature to ensure that any revenue loss to the state school aid fund due to this exemption will be compensated through annual appropriations from the state general fund.

Statutes affected:
Substitute (H-2): 205.94
House Introduced Bill: 205.94
As Passed by the House: 205.94