Rep. Pamela Hornberger’s measure making it easier for schools, non-profits and qualified businesses to complete tax-exempt purchases in Michigan has been signed into law.
The new law assists buyers who qualify for sales use and tax exemptions on certain purchases but don’t claim the exemption at the time of purchase. Buyers now will be able to file for a refund directly with the state Treasury.
“This change will make the process of seeking a refund simpler and clearer for everyone involved in the transaction,” said Hornberger, of Macomb County’s Chesterfield Township.
Hornberger sponsored the legislation with state Rep. Sue Allor of Wolverine.
Michigan law already allows nonprofits and certain businesses – including many schools, churches and some agricultural producers — to claim a sales and use tax exemption on purchases of tangible personal property. Under the revised law, buyers who don’t claim the exemption at the time of purchase would need an exemption certificate and a record of the sale to qualify for the refund directly from Treasury.
After Gov. Rick Snyder’s approval, House Bills 5620-21 have become Public Acts 167 and 168 of 2018.