Michigan House Bill HB5809

Michigan 2023-2024 Regular Session

• Introduced: 6/12/24
• Refer: 6/12/24

Caption

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.

Impact

The introduction of HB5809 is designed to alleviate financial burdens on families during the back-to-school shopping period, making essential items more affordable. By exempting these particular categories of items, the bill aims to encourage consumer spending and support educational preparedness in the state of Michigan. The provisions lay out clear pricing thresholds and exclude certain categories like clothing accessories and recreational equipment from the exemptions, ensuring that the focus remains on essential school-related purchases.

Summary

House Bill 5809 aims to amend the Use Tax Act of 1937 in Michigan by providing exemptions for certain purchases made during a specified tax holiday period each year. This bill establishes that between 12:01 a.m. on the third Saturday of August and 11:59 p.m. on the third Sunday of August, specific items, including clothing priced below $100, school supplies priced below $20, and computers for personal use priced below $1,000, will be exempt from use tax. Additionally, it enables exemptions for school computer supplies priced under $500.

Contention

Notable points of contention may arise regarding the specifics of eligible items and potential implications for retailers. Critics could argue that while the intent of the bill is to support families, it also places an administrative burden on businesses to navigate the qualifications for tax exemptions during a busy shopping period. Moreover, concerns may be raised regarding the effectiveness of such tax holidays in significantly impacting overall household budgets, as families might still face high costs for other necessary items outside the exemption categories.