Rep. Lynn Afendoulis, chair of the Michigan House Tax Policy Committee, today introduced a plan designed to boost retail sales and the state’s economy after it emerges from the coronavirus threat.
The measure would provide a ‘sales tax holiday’ in the state – waiving Michigan’s 6 percent sales tax on a variety of purchases made at physical locations. Dates and other specifics for the sales tax holiday would be determined at a later time, but Afendoulis said preparations should begin now. A companion bill for a use tax holiday was introduced by Rep. Ben Frederick of Owosso.
“This is a bill to get Main Street Michigan back on its feet after this unprecedented, challenging time,” said Afendoulis, of Grand Rapids Township. “We don’t know how long coronavirus will be a public health threat – but we do know challenges will remain from the disruption it is causing to our economy and way of life. When the time is appropriate, a sales tax holiday is one of the tools we can use to incentivize spending and get our economy get back on track. It’s an important sign of support for retailers, their employees, and customers – all of whom will need support as this situation evolves.”
Afendoulis said she is working through possible issues to ensure the measure would be constitutional and in compliance with federal law.
Afendoulis stressed she remains committed to helping fight coronavirus as a health threat first and foremost. Last week, she voted in favor of an emergency budget bill that includes $75 million overall – including $25 million in state funding – to combat and deal with the virus.