This bill amends the General Sales Tax Act of 1933 by adding a new section, 4hh, which establishes a temporary sales tax exemption for qualified building materials used in the construction of qualified residences. The exemption applies to sales made to either the owner or developer of the residence or to contractors engaged in construction activities. However, to qualify for the exemption, a valid building permit must be in good standing at the time of purchase. The bill defines "good standing" as a permit that is not expired, suspended, revoked, or canceled.

Additionally, the bill mandates that the Department of Treasury, in consultation with the Michigan State Housing Development Authority, submit an annual report for the first two years following the enactment of this exemption. This report will assess the impact of the exemption on residential housing, including metrics such as the number of qualified residences built, jobs created, and the overall state revenue effect. The bill also provides definitions for key terms such as "building permit," "qualified building materials," and "qualified residence." The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 205.51, 205.78