HB 4375 — Use tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: HB 4376'25

HB-4375, As Passed House, October 21, 2025 HOUSE BILL NO.

(a) "Person" means an individual, firm, partnership, joint venture, association, social club, fraternal organization, municipal or private corporation whether or not organized for profit, company, limited liability company, estate, trust, receiver, trustee, syndicate, the United States, this state, a KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 county, or any other group or combination acting as a unit, and includes the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context.

(e) "Purchase" means to acquire for a consideration, whether the acquisition is effected by a transfer of title, of possession, KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 or of both, or a license to use or consume;

KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 (iv) Except as otherwise provided in subparagraph (xv), delivery charges.

A preferred customer card that is available to any patron does not constitute membership in a group KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 or organization.

Except as otherwise provided under subparagraph (xiv), for purposes of this subparagraph, the KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 agreed-upon value of a motor vehicle or recreational vehicle used as part payment is limited as follows:

(xiv) Beginning January 1, 2018, credit for the agreed-upon value of a recreational vehicle used as part payment of the KAS H00963'25_HB4375_INTR_1H00963'25_HB4375_APH_1 t5o69xuqfsmw 1 purchase price of a recreational vehicle purchased from a dealer if the agreed-upon value is separately stated on the invoice, bill of sale, or similar document given to the purchaser.

As used in this subparagraph, "portable electronic device" means an electronic device that is portableeasily carried and includescan accessoriesstore, relatedtransmit, toor thatprocess device.data, such as smartphones, cellular phones, laptops, tablets, smartwatches, gaming consoles, digital cameras, fitness trackers, portable media players, digital audio players, personal digital assistants, pagers, cameras, and electronic readers.

(i) A person acquiring tangible personal property if engaged in the business of constructing, altering, repairing, or improving the KAS H00963'25_HB4375_APH_1 uqfsmw 1 real estate of others.

(ii) A person who has converted tangible personal property or services acquired for storage, use, or consumption in this state KAS H00963'25_HB4375_INTR_1 t5o69x 1 that is exempt from the tax levied under this act to storage, use, or consumption in this state that is not exempt from the tax levied under this act.

(n) "Qualified commercial motor vehicle" means that term as defined in section 1(l), (m), and (n) of the motor carrier fuel tax KAS H00963'25_HB4375_APH_1 uqfsmw 1 act, 1980 PA 119, MCL 207.211.

KAS H00963'25_HB4375_INTR_1 t5o69x 1 (p) "Sale" means a transaction by which tangible personal property or services are purchased or rented for storage, use, or other consumption in this state.

(ii) A person that operates equipment or facilities for producing, generating, transmitting, delivering, or furnishing KAS H00963'25_HB4375_APH_1 uqfsmw 1 electricity within this state for the public for compensation, regardless of the person's owner, ownership structure, or regulation by the Michigan public service commission.

KAS H00963'25_HB4375_INTR_1 t5o69x 1 (2) Notwithstanding anything to the contrary in this act, the following applies only to delivery and installation charges described in subsection (1)(f)(iv) or (v), except that this subsection does not apply to delivery and installation charges involving or relating to the sale of electricity, natural gas, or artificial gas by a utility:

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