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SB 498

Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & adds secs. 12a & 25a.

2025-2026 Regular Session Introduced by Jeff Irwin

Michigan would create a temporary sales tax holiday on back-to-school clothing and supplies to reduce education expenses for families during peak shopping season.

REFERRED TO COMMITTEE ON EDUCATION
#salestax:collections #salestax:exemptions
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Bill Summary · SB 498

Legislative bill overview

SB 498 would create a sales tax holiday for back-to-school clothing and school supplies in Michigan by amending the state's sales tax exemption statute. The bill adds provisions that would temporarily exempt qualifying items from the 6% state sales tax during a designated back-to-school period, reducing the immediate cost for families purchasing education-related goods.

Why is this important

Back-to-school shopping represents a significant annual expense for Michigan families, particularly low- and middle-income households. A sales tax exemption could provide measurable financial relief during a concentrated spending period while potentially stimulating retail activity. The bill's actual impact depends on which items qualify, the exemption's duration, and the resulting state revenue loss.

Potential points of contention

  • Revenue impact: The state would forgo sales tax revenue during the holiday period; fiscal analysis is needed to determine the budgetary cost and whether this conflicts with other spending priorities
  • Definition scope: Ambiguity over what qualifies as "school supplies" and "clothing" could create compliance issues for retailers and disputes over borderline items
  • Equity questions: A sales tax holiday may disproportionately benefit families with higher purchasing power who buy more items, while providing less relief to families with tighter budgets

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

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