This 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 clarifications on terms such as "person," "use," "storage," "seller," and "purchase," which now encompass a broader range of entities and transactions. The bill also specifies that the Department of Treasury must cancel outstanding balances related to delivery and installation charges for assessments issued before April 26, 2023, and prohibits new assessments for these charges for any tax period prior to that date.

Additionally, the bill outlines various exemptions from the use tax, including rental receipts for property previously taxed, specific charges for technical support, and sales of certain medical supplies like insulin and oxygen. Notably, it introduces an exemption for the sale of diesel fuel to interstate motor carriers and the use of electric fuel for vehicles if taxed under existing fuel tax acts. The enactment of this bill is contingent upon the passage of two other related bills in the 103rd Legislature.

Statutes affected:
House Introduced Bill: 205.92, 205.94