The bill amends the Use Tax Act of 1937 by updating definitions and provisions related to the taxation of tangible personal property and services in Michigan. Key insertions include the clarification of terms such as "person," "use," "storage," "seller," and "purchase," which now explicitly include various entities and scenarios. Notably, the definition of "purchase price" has been expanded to include a new subparagraph (xvi) that allows for credit for the agreed-upon value of a portable electronic device used as part payment for a new or used portable electronic device, provided that the value is separately stated on the invoice.

Additionally, the bill addresses delivery and installation charges, mandating the cancellation of outstanding balances related to these charges for assessments issued before April 26, 2023. It prohibits the issuance of new assessments for these charges for any tax period before that date. The bill emphasizes the importance of clarity in tax administration and aims to alleviate past tax burdens related to delivery and installation services. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 205.92
As Passed by the House: 205.92