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SB 416

Education, Curriculum - As enacted, requires the state textbook and instructional materials quality commission, in consultation with the department of education, to develop a plan for the commission to review and submit to the state board of education for approval of electronic textbooks and instructional materials for use by virtual schools established by LEAs. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by Ferrell Haile

Micro brewers may use the purchaser’s MLCC license number to satisfy use-tax exemption identifying info, reducing paperwork for exemptions.

Pub. Ch. 427
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Bill Summary · SB 416

Summary — SB 416 (Michigan) — Use Tax: identifying information for exemptions; micro brewers added

Status: Enacted as Public Act 61 of 2024 (approved June 20, 2024). Amends the Use Tax Act (1937 PA 94), sections 14a and 14b (MCL 205.104a & 205.104b). Tie‑barred with SB 415 (sales tax counterpart).

Purpose / Intent

To streamline documentation required when a seller claims a resale/use‑tax exemption for sales of alcoholic liquor to another licensed liquor business by allowing a purchaser’s Michigan Liquor Control Commission (MLCC) license number to satisfy the “identifying information” requirement — and to extend that streamlined verification to sellers licensed as micro brewers. The change aligns micro brewers with wholesalers and authorized distribution agents for use‑tax exemption recordkeeping.

Key provisions

  • Adds “micro brewer” to the list of sellers for which obtaining the purchaser’s MLCC license number satisfies the identifying‑information requirement for claiming a use‑tax exemption (MCL 205.104b(1) / sec. 14b).
  • Clarifies that when the required MLCC license number (and other required information) is maintained, an exemption certificate or additional documentation is not required for exemption claims filed by those sellers (MCL 205.104a(6) / sec. 14a).
  • Retains existing recordkeeping, audit, and seller‑liability rules:
    • Sellers must keep accurate records (inventories, sales records, receipts, invoices) and retain them per statute.
    • A seller who complies with the information/recordkeeping requirements is shielded from tax liability if a purchaser improperly claims an exemption, except where the seller commits fraud, solicits improper claims, or otherwise knowingly accepts improper exemption claims.
    • Existing administrative provisions (e.g., use of standard electronic formats, 120‑day cure period for capturing exemption data) remain in force.
  • “Micro brewer” is the MLCC‑defined term (see Michigan Liquor Control Code section defining brewers that manufacture less than 60,000 barrels per year, etc.).

Who is affected

  • Primary: micro brewers licensed by the MLCC who sell alcoholic liquor to other MLCC licensees (retailers, restaurants, bars, etc.).
  • Secondary: wholesalers, MLCC authorized distribution agents (already covered), purchasers who are MLCC licensees, the Department of Treasury (audits/enforcement), and MLCC.
  • Impact: reduces administrative burden on micro brewers and their customers when claiming resale/use tax exemptions; aligns documentation rules across classes of liquor sellers.

Fiscal and procedural notes

  • Nonpartisan committee analyses reported no fiscal impact to state or local government.
  • The bill was tie‑barred with SB 415 (sales tax counterpart) and was enacted as Public Act 61 of 2024 (filed with the Secretary of State June 20, 2024).

Compiled from official sources — confirm details with the bill’s official record.

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