A bill to amend 1933 PA 167, entitled “General sales tax act,” (MCL 205.51 to 205.78) by adding sections 4kk and 19a.
House Bill No. 5805 aims to amend the General Sales Tax Act of 1933 by introducing a sales tax holiday specifically for back-to-school purchases. This tax exemption event is scheduled annually from 12:01 a.m. on the third Saturday of August until 11:59 p.m. on the third Sunday of August. During this period, certain items are exempt from sales tax, including:
Clothing priced at $100 or less per item. School supplies priced at $20 or less per item. Computers for noncommercial use priced at $1,000 or less. School computer supplies for noncommercial use priced at $500 or less.
The bill clearly defines which items are eligible for the tax exemption, excluding clothing accessories, sports equipment, protective equipment, trade or business items, and furniture. It provides detailed definitions for terms such as "clothing," "computer," "school supplies," and others to clarify what qualifies for the exemption.
Additionally, the bill outlines specific conditions for layaway sales, the impact of discounts on the sales price for eligibility, and the treatment of coupons and exchanges. It specifies that the seller's location time zone determines the sales tax holiday period and sets a 60-day post-holiday period for customers to provide documentation for sales tax refunds on returned items.
Co-sponsored by Reps.
Referred to the Committee on Tax Policy
