Bill Text: MI HB4825 | 2019-2020 | 100th Legislature | Introduced
Bill Title: 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 sec. 4ff.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-08-20 - Bill Electronically Reproduced 08/13/2019 [HB4825 Detail]
Download: Michigan-2019-HB4825-Introduced.html
HOUSE BILL No. 4825
August 13, 2019, Introduced by Reps. Koleszar and Shannon and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
(MCL 205.91 to 205.111) by adding section 4ff.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4ff. (1) Subject to subsection (2), the tax under this
act does not apply to the sale of any of the following items if the
sale is made between 12:01 a.m. and 11:59 p.m. on the third
Saturday of August each year:
(a) Clothing if the sales price of each individual item is not
greater than $100.00.
(b) School supplies if the sales price of each individual item
is not greater than $20.00.
(c) A personal computer purchased for noncommercial home or
personal use, if the sales price, less any manufacturer's rebate,
of each individual personal computer is not greater than $1,000.00.
(d) A personal computer accessory purchased for noncommercial
home or personal use, if the sales price, less any manufacturer's
rebate, of each individual personal computer accessory is not
greater than $500.00.
(2) The exemption in subsection (1) does not apply to the
following:
(a) Clothing accessories or equipment.
(b) Protective, sport, or recreational equipment.
(c) Any item sold for use in a trade or business.
(d) Furniture.
(3) As used in this section:
(a) "Clothing" means any article of wearing apparel, including
all footwear, intended to be worn on or about the human body.
(b) "Clothing accessories or equipment" means incidental items
worn on the person or in conjunction with clothing, including, but
not limited to, watches, watchbands, jewelry, umbrellas, or
handkerchiefs.
(c) "Monitor" does not include a device that includes a
television tuner.
(d) "Personal computer" means an electronic device that
accepts information in digital or similar form and manipulates that
information for a result based on a sequence of instructions.
Personal computer includes, but is not limited to, an electronic
book reader or a laptop, desktop, handheld, tablet, or tower
computer. Personal computer does not include a cellular telephone,
video game console, digital media receiver, or any other device not
primarily designed to process data.
(e) "Personal computer accessory" includes a keyboard, mouse,
personal digital assistant, monitor, peripheral device, modem,
router, and nonrecreational software, regardless of whether the
personal computer accessory is used in association with a personal
computer. Personal computer accessory does not include any system,
device, software, or peripheral device that is designed or intended
primarily for recreational use.
(f) "Protective, sport, or recreational equipment" means items
designed for human use and worn in conjunction with an athletic or
recreational activity and that are not suitable for general use,
including, but not limited to, skis, swim fins, rollerblades, and
skates.
(g) "School supplies" means pens, pencils, erasers, crayons,
notebooks, notebook filler paper, legal pads, binders, lunch boxes,
construction paper, markers, folders, poster board, composition
books, poster paper, scissors, cellophane tape, glue, paste,
rulers, computer disks, protractors, compasses, calculators, and
similar items.
