Bill
HB 5396
Overview: HB 5396, "Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee)", was elect
Overview: HB 5396, "Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee)", was electronically reproduced on 12/17/2025.
Purpose and Intent: The primary purpose of this bill is to eliminate the sales tax exemption for data centers, which was previously granted to encourage the development of data center infrastructure in the state.
Key Provisions:
- Repeals the existing sales tax exemption for data centers
- Amends the relevant section of the Michigan Sales Tax Act to remove the data center exemption
Affected Parties and Impacts: This bill would primarily impact data center operators and owners, who would no longer be able to benefit from the sales tax exemption. This change could potentially increase the operating costs for data centers and affect their competitiveness in the state.
Procedural and Timeline Considerations: The bill has been electronically reproduced, indicating that it is in the early stages of the legislative process. The next steps would involve the bill being formally introduced and referred to the appropriate committee for further consideration and potential advancement.
Compiled from official sources — confirm details with the bill’s official record.
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