Michigan House Bill HB5370

Michigan 2023-2024 Regular Session

• Introduced: 11/14/23
• Refer: 11/14/23

Caption

Taxation: excise taxes; tax levy per gallon of paint; provide for, and earmark revenue for a lead remediation program. Creates new act.

Impact

One of the notable provisions of HB 5370 is that it earmarks the proceeds from this excise tax for lead abatement and lead reduction initiatives in residential dwellings. The funds will be allocated to a restricted account within the state treasury, emphasizing the state's commitment to addressing public health concerns associated with lead exposure. This targeted use of revenue is indicative of a broader strategy to improve environmental health standards in Michigan.

Summary

House Bill 5370 aims to establish an excise tax on the sale of certain architectural paints within Michigan. Specifically, the bill levies a tax of 25 cents per gallon, which is applicable to interior and exterior architectural coatings sold in containers of 5 gallons or less. The measure delineates that the tax will be collected from either the manufacturer or the wholesaler depending on where the paint is sourced. This tax is intended to standardize the collection process by aligning it with existing use tax regulations in the state.

Contention

While the bill seeks to promote public health through lead reduction financing, it may face pushback from various stakeholders, including paint manufacturers and retailers who could argue that the new tax could impose additional burdens on their operations. Furthermore, concerns may arise regarding the administration of the tax and its impact on pricing for consumers purchasing architectural paints, as businesses may pass on the cost of the excise tax to their customers.

Additional_points

HB 5370 also empowers the state treasurer to prescribe the necessary forms and rules for the administration of the act. This provision is significant in ensuring that the process for tax collection remains efficient and transparent. However, as is common with new taxation measures, the discussions surrounding the implementation may also delve into the intricacies of managing funds collected from the tax and ensuring they are effectively utilized for the intended public health purposes.