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HB 5169

Sales tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm.

2025-2026 Regular Session Introduced by Greg Alexander and 13 co-sponsors

Michigan bill creates sales tax exemption for large agricultural processing facilities to attract investment and jobs, reducing state revenue without specified limits.

referred to Committee on Rules
#salestax:exemptions
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WeVote Research Nonpartisan
Bill Summary · HB 5169

Legislative bill overview

HB 5169 proposes adding a sales tax exemption for large agricultural processing facility projects in Michigan. The bill amends the 1933 Sales Tax Act by creating a new exemption category (Section 4mm) specifically targeting substantial agricultural processing operations. The exact scope and qualifying criteria for these facilities are not detailed in the bill summary provided.

Why is this important

Agricultural processing facilities represent significant capital investment and job creation in Michigan's economy. Sales tax exemptions on such projects can substantially reduce startup costs and make Michigan more competitive for attracting major food processing operations, though they also reduce state tax revenue that funds public services.

Potential points of contention

  • Revenue impact: The exemption reduces sales tax collections without specified limits on project size, duration, or aggregate tax forgiveness, creating uncertainty about fiscal costs
  • Selective benefits: Singling out agricultural processing for exemptions while other industries pay full sales tax raises equity questions about which industries deserve preferential treatment
  • Definition ambiguity: The bill summary doesn't clarify what constitutes a "large" facility or which types of agricultural processing qualify, potentially creating disputes over eligibility

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

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