The bill amends the General Sales Tax Act of 1933 by updating sections 6 and 25 and adding a new section 18a. Key changes include the requirement for taxpayers to submit a report on the sales tax attributable to parts and accessories of motor vehicles starting October 1, 2027. This report must be submitted in a form prescribed by the department and will require taxpayers to implement a system to identify and assign unique identifiers to these taxable goods at the point of sale. Additionally, the bill specifies that the department must issue a revenue administrative bulletin defining what constitutes parts and accessories of motor vehicles by March 31, 2027.

Furthermore, the bill modifies the distribution of sales tax collections, particularly regarding the comprehensive transportation fund. It establishes that beginning October 1, 2027, 25% of the collections from the general sales tax on fuels, motor vehicles, and their parts and accessories will be deposited into this fund. The bill also clarifies the definitions of terms related to aviation fuel and various funds, ensuring that the revenue generated is appropriately allocated to support transportation and education initiatives in Michigan.

Statutes affected:
House Introduced Bill: 205.56, 205.75