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HB 5130

Use tax: exemptions; exemptions for the sale of investment coins and bullion; modify. Amends sec. 4u of 1937 PA 94 (MCL 205.94u). TIE BAR WITH: HB 5131'25, HB 5129'25

2025-2026 Regular Session Introduced by Steve Carra and 4 co-sponsors

Expands Michigan use-tax exemption for investment coins and bullion to cover leaf/foil/film currency-like products with 50%+ metal content, effective 1/1/2026 (conditional).

bill electronically reproduced 10/23/2025
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Bill Summary · HB 5130

Summary — HB 5130 (Use Tax: exemptions for investment coins and bullion)

Status: House introduced; bill text electronically reproduced 10/23/2025. Introduced March 13, 2025; referred to committee; public hearing held 4/24/2025 and left pending. Primary sponsor: Rep. Tim Kelly. Tie-bar: HB 5131 and HB 5129 — this bill will not take effect unless those companion bills are enacted.

Purpose / intent

HB 5130 updates the statutory exemption from Michigan use tax for “investment coins and bullion.” It clarifies and expands the statutory definitions of bullion and investment coins so certain additional forms of precious-metal products are explicitly exempt from the state use tax.

Key provisions

  • Amends section 4u of the Use Tax Act (1937 PA 94; MCL 205.94u).
  • Maintains the core rule (in place since July 7, 1999): the Michigan use tax does not apply to the storage, use, or consumption of investment coins and bullion.
  • Revises the statutory definitions:
    • “Bullion” (existing language retained) is gold, silver, or platinum in bulk form whose value is tied to metal content with purity of at least 900 parts per 1,000 (90%).
    • Adds that, beginning January 1, 2026, bullion also includes gold/silver/platinum leaf, foil, or film that: (1) has metallic content of 50% or more (exclusive of any transparent polymer holder, coating, or encasement), and (2) is used as currency but is not legal tender issued by the U.S. or a foreign government.
    • “Investment coins” is defined to include numismatic coins or other forms of money/legal tender manufactured of gold, silver, platinum, palladium, or other metals and issued by the U.S. or a foreign government where the coin’s fair market value exceeds its face value.
  • Enacting section: the amendment will not take effect unless HB 5131 and HB 5129 of the same legislature are also enacted.

Who is affected

  • Buyers, sellers, dealers, mints, and storage/precious-metals custodial services in Michigan who handle investment coins, bullion, or covered leaf/foil/film products.
  • State tax administration and local businesses that collect or remit use tax on precious-metal products.
  • Collectors and investors who purchase qualifying items will remain or become exempt from Michigan use tax on these items.

Practical impacts and considerations

  • Broadens exempt categories to include thin-form metallic leaf/foil/film currency-like products with at least 50% metal content (effective 1/1/2026), potentially expanding tax-exempt transactions and reducing state use-tax revenue on those items.
  • May require dealers and purchasers to document metal content, legal-tender status, and fair market value above face value to substantiate exemption claims.
  • No change to tax rates; the bill is definitional and exemption-focused.
  • Effectiveness is conditional on enactment of the two tied bills (HB 5131 and HB 5129).

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

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