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Bill

SB 229

Sales tax: other; deduction or exclusion and audit of qualified delivery network sales; provide for. Amends sec. 2d of 1933 PA 167 (MCL 205.52d).

2025-2026 Regular Session Introduced by Jeremy Moss

Michigan bill grants sales tax deduction/exclusion for qualified delivery network sales and creates audit procedures to regulate gig economy delivery platform taxation.

referred to Committee on Economic Competitiveness
#salestax:other
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WeVote Research Nonpartisan
Bill Summary · SB 229

Legislative bill overview

SB 229 modifies Michigan's sales tax code to create a deduction or exclusion for qualified delivery network sales and establishes audit procedures for these transactions. The bill amends the state's 1933 Sales Tax Act to clarify tax treatment of delivery services, likely targeting gig economy delivery platforms like DoorDash, Uber Eats, and similar services.

Why is this important

This bill directly affects how Michigan taxes the rapidly growing delivery economy, influencing costs for consumers, tax revenue for the state, and operational expenses for delivery platforms. The unanimous 37-0 passage suggests broad bipartisan support for the tax treatment being established, indicating this may address a perceived gap or ambiguity in current tax law that needed clarification.

Potential points of contention

  • Revenue impact: Depending on the scope of the deduction/exclusion, Michigan could lose sales tax revenue if delivery services receive favorable treatment, shifting the tax burden to other sectors
  • Definition ambiguity: "Qualified delivery network" requires precise definition; unclear criteria could create confusion for businesses determining tax obligations or enable unintended tax avoidance
  • Competitive fairness: Traditional delivery services (restaurants' own drivers) versus third-party platforms may face different tax treatments, potentially disadvantaging one business model over another

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

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