Bill Text: MI HB6079 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Sales tax: distribution; reporting and earmark of auto-related sales tax for the comprehensive transportation fund; provide for. Amends secs. 6 & 25 of 1933 PA 167 (MCL 205.56 & 205.75) & adds sec. 18a.
Sponsorship: Slight Partisan Bill (Democrat 6-2)
Status: (Introduced) 2026-06-16 - Bill Electronically Reproduced 06/11/2026 [HB6079 Detail]
Download: Michigan-2025-HB6079-Introduced.html
HOUSE BILL NO. 6079
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending sections 6 and 25 (MCL 205.56 and 205.75), section 6 as amended by 2014 PA 425 and section 25 as amended by 2025 PA 17, and by adding section 18a.
the people of the state of michigan enact:
Sec. 6. (1) Each taxpayer, unless except as otherwise provided by law or as otherwise required pursuant to under subsection (2), (4), or (5), on or before the twentieth day of each month shall make out a return for the preceding month on a form prescribed by the department showing the entire amount of all sales and gross proceeds of his or her the taxpayer's business, the allowable deductions, and the amount of tax for which he or she the taxpayer is liable. The taxpayer shall also transmit the return, together with a remittance for the amount of the tax, to the department on or before the twentieth day of that month.
(2) Each taxpayer that had a total tax liability after subtracting the tax payments made to the secretary of state under this act or the use tax act, 1937 PA 94, MCL 205.91 to 205.111, or after subtracting the tax credits available under section 6a, in the immediately preceding calendar year of $720,000.00 or more shall remit to the department, by an electronic funds transfer method approved by the department on or before the twentieth day of the month, an amount equal to the following:
(a) Beginning January 1, 1999 through December 31, 2013, 50% of the taxpayer's liability under this act for the same month in the immediately preceding calendar year, or 50% of the actual liability for the month being reported, whichever is less, plus a reconciliation payment equal to the difference between the tax liability determined for the immediately preceding month minus the amount of tax previously paid for that month. Additionally, the seller shall remit to the department, by an electronic funds transfer method approved by the department on or before the last day of the month, an amount equal to 50% of the taxpayer's liability under this act for the same month in the immediately preceding calendar year, or 50% of the actual liability for the month being reported, whichever is less.
(b) Beginning January 1, 2014, 75% of the taxpayer's liability under this act in the immediately preceding month or 75% of the taxpayer's liability for the same month in the immediately preceding calendar year, whichever is less, plus a reconciliation payment equal to the difference between the tax liability determined for the immediately preceding month minus the amount of tax previously paid for that month. Payment remitted to the department by electronic funds transfer may include as a single payment any amount due under section 6 of the use tax act, 1937 PA 94, MCL 205.96.
(3) The tax imposed under this act shall accrue to this state on the last day of the month in which the sale is incurred.
(4) The department, if necessary to insure payment of the tax or to provide a more efficient administration, may require the filing of returns and payment of the tax for other than monthly periods.
(5) A taxpayer who is a materialperson may at the option of the taxpayer include the amount of all taxable sales and gross proceeds from materials furnished to an owner, contractor, subcontractor, repairperson, or consumer on a credit sale basis for the purpose of making an improvement to real property in his or her the taxpayer's return in the first quarterly return due following the date in which the materialperson made the credit sale to the owner, contractor, subcontractor, repairperson, or consumer. Notwithstanding subsections (1) through (3), a materialperson may at the option of the taxpayer file quarterly returns for a credit sale only as determined by the department. As used in this subsection: , "credit
(a) "Credit sale" means an extension of credit for the sale of taxable goods by a seller other than a credit card sale. ; and "materialperson"
(b) "Materialperson" means a person who that provides materials for the improvement of real property, who that has registered with and has demonstrated to the department that he or she the person is primarily engaged in the sale of lumber and building material related products, precast concrete products, or conduit or fitting products used in the collection, conveyance, or distribution of water or sewage to owners, contractors, subcontractors, repairpersons, or consumers, and who that is authorized to file a construction lien upon real property and improvements under the construction lien act, 1980 PA 497, MCL 570.1101 to 570.1305.
(6) If a due date falls on a Saturday, Sunday, state holiday, or legal banking holiday, the taxes are due on the next succeeding business day.
(7) Beginning October 1, 2027, each taxpayer shall, in a form as prescribed by the department under section 18a, separately submit a report on the amount of the remittance that is attributable to parts and accessories of motor vehicles with the taxpayer's return required under this section.
Sec. 18a. (1) Not later than March 31, 2027, the department shall do all of the following:
(a) Issue a revenue administrative bulletin that defines what tangible personal property falls within the category of parts and accessories of motor vehicles.
(b) Develop a separate line item, form, or schedule for taxpayers to separately report the amount of sales tax attributable to the category of parts and accessories of motor vehicles.
(2) Not later than 90 days after the department issues the revenue bulletin required under subsection (1), a taxpayer must implement a system to identify and assign a unique identifier to those taxable goods and products at the point of sale that fall within the category of parts and accessories of motor vehicles.
(3) Beginning October 1, 2027, taxpayers shall separately report and remit the sales tax collected on parts and accessories of motor vehicles in a form as prescribed by the department in the same manner as required under section 6.
Sec. 25. (1) All money received and collected under this act must be deposited by the department in the state treasury to the credit of the general fund, except as otherwise provided in this section.
(2) Fifteen percent of the collections of the tax imposed at a rate of 4% must be distributed to cities, villages, and townships pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.
(3) Sixty percent of the collections of the tax imposed at a rate of 4% must be deposited in the state school aid fund and distributed as provided by law. In addition, all of the collections of the tax imposed at the additional rate of 2% approved by the electors on March 15, 1994 must be deposited in the state school aid fund.
(4) Except as otherwise provided in this subsection, Through September 30, 2027, not less than 27.9% of 25% of the collections of the general sales tax imposed at a rate of 4% directly or indirectly on fuels sold to propel motor vehicles upon highways, on the sale of motor vehicles, and on the sale of the parts and accessories of motor vehicles by new and used car businesses, used car businesses, accessory dealer businesses, and gasoline station businesses as classified by the department must be deposited each year into the comprehensive transportation fund. For the fiscal year ending September 30, 2021 only, the amount deposited into the comprehensive transportation fund under this subsection must be reduced by $18,000,000.00 and that $18,000,000.00 must be deposited into the transportation administration collection fund.Beginning October 1, 2027, 25% of the collections of the general sales tax imposed at a rate of 4% directly or indirectly on fuels sold to propel motor vehicles upon highways, on the sale of motor vehicles, and on the sale of the parts and accessories of motor vehicles by new and used car businesses, used car businesses, accessory dealer businesses, gasoline station businesses, and warehouse clubs and supercenters as classified by the department and including all sales reported and remitted under section 18a(3) must be deposited each year into the comprehensive transportation fund.
(5) Beginning October 1, 2016 and the first day of each calendar quarter thereafter, an amount equal to the collections for the calendar quarter that is 2 calendar quarters immediately preceding the current calendar quarter of the tax imposed under this act at the additional rate of 2% approved by the electors on March 15, 1994 from the sale at retail of aviation fuel must be distributed as follows:
(a) An amount equal to 35% of the collections of the tax imposed at a rate of 2% on the sale at retail of aviation fuel must be deposited in the state aeronautics fund and must be expended, on appropriation, only for those purposes authorized in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.
(b) An amount equal to 65% of the collections of the tax imposed at a rate of 2% on the sale at retail of aviation fuel must be deposited in the qualified airport fund and must be expended, on appropriation, only for those purposes authorized under section 35 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.35.
(6) The department shall, on an annual basis, reconcile the amounts distributed under subsection (5) during each fiscal year with the amounts actually collected for a particular fiscal year and shall make any necessary adjustments, positive or negative, to the amounts to be distributed for the next successive calendar quarter that begins January 1. The state treasurer or the state treasurer's designee shall annually provide to the operator of each qualified airport a report of the reconciliation performed under this subsection. The reconciliation report is subject to the confidentiality restrictions and penalties provided in section 28(1)(f) of 1941 PA 122, MCL 205.28.
(7) An amount equal to the collections of the tax imposed at a rate of 4% under this act from the sale at retail of computer software must be deposited in the Michigan health initiative fund created in section 5911 of the public health code, 1978 PA 368, MCL 333.5911, and must be considered in addition to, and is not intended as a replacement for any other money appropriated to the department of health and human services. The funds deposited in the Michigan health initiative fund on an annual basis must not be less than $9,000,000.00 or more than $12,000,000.00.
(8) In addition to the money deposited in the state school aid fund under subsection (3), from the collections of the tax imposed at a rate of 4% under this act, an amount equal to the sum of the following, as determined by the department, must be deposited into the state school aid fund:
(a) All revenue lost to the state school aid fund as a result of the exemption under section 4a(1)(u).
(b) All revenue lost to the state school aid fund as a result of the exemption under section 4ee. A person that claims an exemption under section 4ee shall report the sales price of the data center equipment as that term is defined in section 4ee and any other information necessary to determine the amount of revenue lost to the state school aid fund as a result of the exemption under section 4ee annually on a form at the time and in a manner prescribed by the department. The report required under this subdivision must not include any remittance for tax, and does not constitute a return or otherwise alleviate any obligations under section 6.
(c) All revenue lost to the state school aid fund as a result of the exclusion under section 1(1)(d)(xv).
(d) All revenue lost to the state school aid fund as a result of both of the following:
(i) The exemption under section 4gg.
(ii) The exemption under section 4gg of the use tax act, 1937 PA 94, MCL 205.94gg.
(9) The balance in the state general fund shall be disbursed only on an appropriation or appropriations by the legislature.
(10) As used in this section:
(a) "Aviation fuel" means fuel as that term is defined in section 4 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.4.
(b) "Comprehensive transportation fund" means the comprehensive transportation fund created in section 10b of 1951 PA 51, MCL 247.660b.
(c) "Qualified airport" means that term as defined in section 109 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.109.
(d) "Qualified airport fund" means the qualified airport fund created in section 34(2) of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.34.
(e) "State aeronautics fund" means the state aeronautics fund created in section 34(1) of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.34.
(f) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963.
(g) "Transportation administration collection fund" means the transportation administration collection fund created in section 810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b.
