HB 4376 — Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).

HB-4376, 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, or not, company, limited liability company, estate, trust, receiver, trustee, syndicate, the United States, this state, KAS H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3 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.

KAS H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3 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 or KAS H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3 1 organization.

Except as otherwise provided under subparagraph (xiv), for purposes of this subparagraph, the KAS H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3 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 H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3 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 telephones, laptops, tablets, smartwatches, gaming consoles, digital cameras, fitness trackers, portable media players, digital audio players, personal digital assistants, pagers, cameras, and electronic readers.

(f) "Tax year" or "taxable year" means the fiscal year of the state or the taxpayer's fiscal year if permission is obtained by the taxpayer from the department to use the taxpayer's fiscal year KAS H00616'25_HB4376_APH_1 85eaq3 1 as the tax period instead.

KAS H00616'25_HB4376_INTR_1 2rmt34 1 (i) "Tax" includes a tax, interest, or penalty levied under this act.

KAS H00616'25_HB4376_APH_1 85eaq3 1 (2) If the department determines that it is necessary for the efficient administration of this act to regard an unlicensed person, including a salesperson, representative, peddler, or KAS H00616'25_HB4376_INTR_1 2rmt34 1 canvasser as the agent of the dealer, distributor, supervisor, or employer under whom the unlicensed person operates or from whom the unlicensed person obtains the tangible personal property sold by the unlicensed person, irrespective of whether the unlicensed person is making sales on the unlicensed person's own behalf or on behalf of the dealer, distributor, supervisor, or employer, the department may so regard the unlicensed person and may regard the dealer, distributor, supervisor, or employer as making sales at retail at the retail price for the purposes of this act.

(b) Not later than 90 days after the effective date of the amendatory act that added this subsection, July 25, 2023, the department shall cancel all outstanding balances related to such KAS H00616'25_HB4376_APH_1 85eaq3 1 delivery and installation charges on final assessments that were issued under section 22 of 1941 PA 122, MCL 205.22, for the tax levied under this act, and that were issued before the effective KAS H00616'25_HB4376_INTR_1 2rmt34 date of the amendatory act that added this subsection.April 26, 2023.

Final Page KAS H00616'25_HB4376_INTR_1H00616'25_HB4376_APH_1 2rmt3485eaq3