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 that has already been taxed under the general sales tax act, property exempt under U.S. or state constitutions, and specific categories such as items purchased for resale, demonstration, or educational purposes. Additionally, the bill introduces new exemptions for agricultural and environmental equipment, services related to the transportation of school children, and feminine hygiene products, which are defined to include items like tampons and menstrual cups. The bill also specifies that exemptions for feminine hygiene products and children's diapers are limited to their use for exempt purposes.

A significant deletion in the bill removes a previous reference to the state school aid fund, instead requiring the state treasurer to estimate the revenue lost due to the act and ensure that amount is deposited into the state school aid fund from the general fund. This change aims to maintain stable funding for education despite the new tax exemptions. The amendments are retroactive, applying to all periods open under the relevant law, but do not apply to refund claims filed before April 9, 2018. The bill will take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 205.94