Michigan Senate Bill SB0499

Michigan 2025-2026 Regular Session

• Introduced: 8/13/25
• Refer: 8/13/25

Caption

Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) by adding sec. 14c.

Impact

The bill aims to provide financial relief to families during the back-to-school shopping season by allowing them to recoup some of the taxes paid on essential items. This move positions the state as supportive of families and education-related expenditures, potentially increasing consumer spending during this period. It also creates an administrative process within the Department of Treasury to handle refund claims, which may necessitate additional resources or procedures.

Summary

Senate Bill 499 proposes amendments to the 1937 Use Tax Act in Michigan, specifically by introducing a tax refund mechanism for purchases of eligible back-to-school property. This refund will be available to purchasers who buy qualifying items between August 8th and August 24th of each eligible year. Eligible items include clothing priced under $100 and school supplies priced under $20. To claim the refund, purchasers must provide necessary documentation, including proof of purchase and the amount of use tax collected by the seller.

Contention

However, the introduction of a use tax holiday may provoke contention regarding its impact on state revenue. Critics could argue that while it encourages consumer spending, it undermines the tax base that funds essential public services. Concerns regarding the administrative burden on both the department and the retailers might also arise, particularly in ensuring compliance and accuracy in tracking and processing refunds.