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SB 499

Use tax: exemptions; use tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 14c.

2025-2026 Regular Session Introduced by Jeff Irwin

Michigan bill creates back-to-school tax holiday exempting clothing and supplies from use tax to reduce family education costs and increase consumer spending.

REFERRED TO COMMITTEE ON EDUCATION
#usetax:collections #usetax:exemptions
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Bill Summary · SB 499

Legislative bill overview

SB 499 proposes to amend Michigan's use tax law to create a tax holiday exempting back-to-school clothing and school supplies from use tax. The bill would add a new section to the 1937 Public Act 94, creating a temporary period when these items would not be subject to the state's use tax.

Why is this important

Use tax holidays reduce the cost of purchasing school-related items for families, potentially easing financial burdens during back-to-school season. The measure could affect state revenue collection and impact how families budget for educational expenses, while also influencing retail spending patterns during the designated holiday period.

Potential points of contention

  • Revenue impact: The exemption would reduce state tax revenue; the fiscal cost depends on the holiday's duration and which items qualify, which the bill summary doesn't specify
  • Definition ambiguity: The bill doesn't clarify what constitutes "school supplies" or clothing eligible for exemption, potentially creating enforcement and compliance challenges
  • Equity concerns: Tax holidays may disproportionately benefit higher-income families with greater purchasing power, raising questions about whether this is the most effective way to assist students in need

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

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