Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0098

Introduced
3/1/23  

Caption

Sales tax: exemptions; industrial processing exemption; clarify. Amends sec. 4t of 1933 PA 167 (MCL 205.54t). TIE BAR WITH: SB 0097'23

Impact

The passage of SB0098 is expected to have significant implications for state tax policy, particularly in its support for the industrial sector. By providing clearer guidelines on what constitutes an exemption for sales tax, the legislation seeks to stimulate growth in manufacturing and related industries. The exemptions would allow companies to invest more in machinery and technology crucial for their operations, thereby potentially creating jobs and enhancing overall economic development in Michigan.

Summary

Senate Bill 0098 aims to amend the General Sales Tax Act of 1933 by clarifying the provisions related to exemptions for industrial processing. The bill specifies that the sale of tangible personal property to industrial processors is exempt from sales tax if used in industrial processing activities. This exemption is intended to support the manufacturing sector by reducing the tax burden on companies engaged in various processing activities, such as production, engineering, testing, and recycling. Furthermore, the bill ensures that the exemption only applies to property used for exempt purposes with appropriate use percentages defined.

Conclusion

Ultimately, SB0098 strives to address the needs of the manufacturing sector in Michigan while also navigating the complexities of tax policy and fiscal responsibility. As discussions continue, stakeholders from various sectors will be watching closely to assess how amendments and changes to this bill could influence the state's economic landscape.

Contention

Notably, discussions around SB0098 indicate potential contention regarding the transparency and fairness of tax exemptions. Opponents may argue that broad tax exemptions for industrial processing could lead to lost revenue for the state, affecting funding for public services. There is concern among some legislative members that while supporting industries is vital, the lack of strict oversight or limitations could result in misuse of the exemptions or a competitive disadvantage for smaller enterprises that do not qualify for such exemptions.

Companion Bills

MI SB0097

Same As Use tax: exemptions; industrial processing exemption; clarify. Amends sec. 4o of 1937 PA 94 (MCL 205.94o). TIE BAR WITH: HB 4054'23

Similar Bills

MI SB0097

Use tax: exemptions; industrial processing exemption; clarify. Amends sec. 4o of 1937 PA 94 (MCL 205.94o). TIE BAR WITH: HB 4054'23

MI HB4054

Sales tax: exemptions; industrial processing exemption; clarify. Amends sec. 4t of 1933 PA 167 (MCL 205.54t). TIE BAR WITH: SB 0097'23

MI SB0232

Sales tax: exemptions; industrial processing exemption; clarify. Amends sec. 4t of 1933 PA 167 (MCL 205.54t). TIE BAR WITH: SB 0233'23

MI SB0233

Use tax: exemptions; industrial processing exemption; clarify. Amends sec. 4o of 1937 PA 94 (MCL 205.94o). TIE BAR WITH: SB 0232'23

MI HB4055

Use tax: exemptions; industrial processing exemption; clarify. Amends sec. 4o of 1937 PA 94 (MCL 205.94o). TIE BAR WITH: HB 4054'23

MI HB6289

Marihuana: other; cross-references to industrial hemp research and development act within the medical marihuana facilities licensing act; amend. Amends title & secs. 102, 206, 502 & 505 of 2016 PA 281 (MCL 333.27102 et seq.). TIE BAR WITH: HB 6288'24

MI HB4601

Medical marihuana: administration; transfer of medical marihuana from 1 facility to another; allow under certain circumstances, and prohibit a background check of an applicant's spouse under certain circumstances. Amends secs. 102, 402, 501, 502 & 504 of 2016 PA 281 (MCL 333.27102 et seq.).

KS SB292

Prohibiting the transfer of hemp-derived cannabinoid products to any person under the age of 21, establishing packaging and labeling requirements for such products and amending the definition of industrial hemp and hemp products.