The bill amends the Use Tax Act of 1937 by updating Section 4 to clarify and expand various exemptions from the tax. Key insertions include provisions that exempt property sold in Michigan already taxed under the general sales tax act, property exempt under U.S. or state constitutions, and specific categories such as vehicles for educational purposes, demonstration vehicles for new car dealers, and property used in agricultural activities. Additionally, the bill introduces exemptions for nonprofit organizations and educational institutions, as well as for specific items like feminine hygiene products and school buses used for student transportation.

Moreover, the bill deletes previous language regarding the state school aid fund and replaces it with a requirement for the state treasurer to estimate revenue lost from the act, ensuring that this amount is deposited into the state school aid fund from the general fund. This change aims to maintain educational funding while adjusting the tax structure. The bill also introduces new exemptions for feminine hygiene products and children's diapers, defining these items and limiting exemptions based on their specified use. The amendments are designed to alleviate the tax burden on various sectors and organizations, with the bill set to take effect 90 days after enactment.

Statutes affected:
House Introduced Bill: 205.94