This bill amends the Use Tax Act of 1937 by introducing a temporary exemption from the use tax for qualified building materials used in constructing qualified residences. The exemption applies to materials sold to the owner, developer, or contractor of the residence, contingent upon having a valid building permit at the time of sale. This exemption is set to last for two years following the bill's enactment. The bill also specifies conditions under which the materials would be deemed converted to a taxable use, such as the expiration of the building permit or abandonment of the construction project.

Additionally, the bill requires the Department of Treasury, in collaboration with the Michigan State Housing Development Authority, to produce an annual report assessing the exemption's impact on residential housing in Michigan. This report will cover metrics such as the number of qualified residences built, jobs created, and the overall effect on state revenue. The bill further clarifies definitions related to building permits and qualified building materials, expanding the definition to include a wide range of construction materials. It also defines "qualified residence" to include various types of single-family and multi-family dwellings. Notably, the bill will only take effect if either Senate Bill No. ____ or House Bill No. 6270 of the 103rd Legislature is enacted into law, ensuring alignment with other legislative efforts.

Statutes affected:
House Introduced Bill: 205.92