Michigan Governor Signs Tax Exemption Bills

Michigan Gov. Gretchen Whitmer (D) signed Senate Bill 97 and House Bill 4054 into law. The bills will lower costs for Michigan residents by amending the Use Tax Act to exempt from taxation the sale of property, used for production, manufacturing or recycling of aggregate by the property if the aggregate would be used as an ingredient or component part for construction, maintenance, repair or reconstruction of real property in Michigan.

“This is great news for aggregates producers and, more importantly, for Michigan taxpayers,” Doug Needham, executive director for the Michigan Aggregates Association told Rock Products. “By clarifying, hopefully once and for all, the process for obtaining industrial processing equipment tax exemptions, we relieve burdens from the small businesses attempting to rebuild Michigan’s infrastructure and lower the costs for getting that done. The members of the Michigan Aggregates Association thanks Governor Whitmer and the bipartisan majority of the legislature for putting this commonsense reform into state law.”

Michigan state legislators also weighed in on the bills.

“This is about helping reduce taxes on Michigan businesses struggling with ever-increasing costs due to high inflation,” said state Sen. Joseph Bellino (R-Monroe). “I want to thank the governor for signing this bill to provide this relief by clarifying how state tax exemptions apply to producing aggregates, like crushed stone and gravel and recycled materials that are critical to improving our roads and reducing trash in our landfills.”

“This plan will help clear up Michigan’s tax code and remove costs and barriers for Michigan businesses,” said state Rep. Greg VanWoerkom (R-Norton Shores). “I’m glad the bill was able to receive clear bipartisan support and moved swiftly to provide relief for these businesses.”

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