Bill would exempt coronavirus PPE and disinfecting supplies from Michigan sales tax

Legislation also would set a sales tax holiday on an undisclosed date
 Photo courtesy:; Capitol of Michigan photo courtesy of David Marvin.
Photo courtesy:; Capitol of Michigan photo courtesy of David Marvin. (WLUC)
Published: Aug. 10, 2020 at 12:31 PM EDT
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LANSING, Mich. (WJRT) - A Mid-Michigan lawmaker is hoping to boost Michigan’s economy by exempting coronavirus personal protective equipment and disinfecting supplies from the state sales tax.

If the legislation from Republican State Rep. Bed Frederick of Owosso passes, Michigan’s 6% sales tax would not be charged on those purchases. He also is sponsoring bills to set a state sales tax holiday on an undetermined date, when the sales tax wouldn’t be charged on many purchases made in retail stores.

The package of bills also would allow employers to offset part of their coronavirus PPE purchases as a corporate income tax credit for this year.

“These proactive measures would help Michigan continue to reopen its economy safely and sensibly,” Frederick said. “Helping job providers obtain the personal protective equipment their employees need and deserve is simply the right thing to do. These measures make PPE and related COVID-19 supplies more affordable, which means job providers can buy more of it to protect their workers and customers.”

Frederick noted that a sales and use tax exemption is a good way to prompt more purchases overall, which would help Michigan’s economy bounce back from the pandemic. He also helps sponsor House Bills 5680-81, which would provide a ‘sales tax holiday’ in the state – waiving Michigan’s 6 percent sales and use tax on a variety of purchases made at physical locations. Dates and other specifics for the sales tax holiday would be determined at a later time.

House bills 5680 and 5681, which would create the sales tax holiday, and House bills 6033 to 6035, which would allow the sales tax exemptions, all are pending in the House Tax Policy Committee. They still have to pass there and gain approval from the full Michigan House and Senate before Gov. Gretchen Whitmer could consider signing them into law.

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