2023 House Bill 4054 / Public Act 30

Sales tax: exemptions; industrial processing exemption; clarify.

An act to amend 1933 PA 167, entitled “An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,” by amending section 4t (MCL 205.54t), as amended by 2015 PA 205.

Mackinac Center Analysis

Includes some road construction material under existing industrial processing exemptions from sales and use tax. Also exempts outstanding balances for sales and use taxes owed on the sale of these materials.

Introduced in the House

Feb. 1, 2023

Introduced by Reps. Greg VanWoerkom (R-88) and Jamie Thompson (R-28)

Referred to the Committee on Tax Policy

March 15, 2023

Reported with substitute H-1

March 16, 2023

Substitute H-1 concurred in by voice vote

Passed in the House 80 to 23 (details)

Motion to give immediate effect by Rep. Kara Hope (D-74)

The motion prevailed by voice vote

Received in the Senate

March 21, 2023

Referred to the Committee of the Whole

April 20, 2023

Reported with substitute S-1

1. Amend page 9, following line 14, by inserting:

“Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 97 of the 102nd Legislature is enacted into law.”

Substitute S-1 concurred in by voice vote

Passed in the Senate 33 to 4 (details)

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Received in the House

April 20, 2023

April 26, 2023

Amendment offered by Rep. Greg VanWoerkom (R-88)

1. Amend page 7, line 20, by striking out all of subsection (8) and renumbering the remaining subsection.

2. Amend page 9, following line 17, by inserting:

“Enacting section 2. It is the intent of the legislature to annually appropriate sufficient funds from the state general fund to the state school aid fund created in section 11 of article IX of the state constitution of 1963 to fully compensate for any loss of revenue to the state school aid fund resulting from the enactment of this amendatory act.”.

The amendment passed by voice vote

Substitute S-1 concurred in 85 to 23 (details)

Received in the Senate

April 27, 2023

Amendment concurred in 32 to 5 (details)

Signed by Gov. Gretchen Whitmer

May 8, 2023