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 clarifications on terms such as "person," "use," "storage," "seller," "purchase," and "purchase price," which now encompass a broader range of entities and transactions. Notably, the bill specifies that delivery and installation charges are subject to certain conditions, and it introduces a provision that mandates the cancellation of outstanding balances related to these charges for assessments issued before April 26, 2023.

Additionally, the bill outlines that the Department of Treasury is prohibited from issuing new assessments for delivery and installation charges for any tax period prior to April 26, 2023, that remains open under the statute of limitations. This legislative change aims to streamline the administration of the Use Tax Act and provide relief to taxpayers regarding past assessments. The enactment of this bill is contingent upon the passage of Senate Bill No. 997.

Statutes affected:
Senate Introduced Bill: 205.92