Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding secs. 4kk & 19a.
Impact
If enacted, this legislation would have a significant impact on state revenue, particularly during the holiday period when many families typically shop for clothing and school supplies. While the bill promotes economic relief for consumers, it also raises concerns about lost sales tax revenues for the state. Additionally, the bill's stipulations that certain items are excluded from the tax exemption, such as clothing accessories and equipment, aim to mitigate the potential revenue loss while still providing a meaningful benefit to families.
Summary
House Bill 5805 amends the General Sales Tax Act (1933 PA 167) in Michigan to establish a sales tax holiday each year from 12:01 a.m. on the third Saturday of August to 11:59 p.m. on the third Sunday of August. During this period, specific items, including clothing priced under $100, school supplies under $20, and certain computers intended for noncommercial home or personal use valued under $1,000, will be exempt from sales tax. This bill aims to ease the financial burden on families preparing for the back-to-school season by allowing them to make tax-free purchases of essential items.
Contention
Notably, there may be contention surrounding the implementation of the tax holiday and its potential effects on local businesses and retailers. Critics may argue that while the intent is to support consumers, the lack of exemptions for other essential children’s items or school-related costs could inadvertently hinder families by not addressing the broader financial demands of back-to-school shopping. Furthermore, defining what constitutes an ‘eligible’ item can lead to confusion among both sellers and buyers, which might complicate compliance.
Notable_points
HB5805 reflects a growing trend among states to provide sales tax holidays focused on educational needs and family support. As schools resume, such fiscal measures could encourage spending on necessary supplies and clothing. However, the discussion also highlights an ongoing debate regarding the balance between providing tax relief to families and ensuring adequate revenue for state services.
Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding secs. 4kk & 19a.
Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding secs. 4kk & 20a.
Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding secs. 4kk & 20a.
Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.
Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.
Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding secs. 4kk & 20a.
Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding secs. 4kk & 20a.
Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding secs. 4kk & 19a.
Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.
Substitute for SB 55 by Committee on Assessment and Taxation - Expanding and clarifying the property tax exemption for Strother field airport property.