Sales Tax Exemption for Large Agricultural Processing Facility Projects

Current understanding

HB 5169 would amend the General Sales Tax Act (1933 PA 167, MCL 205.51–205.78) by adding section 4mm to create a new sales tax exemption for property used in large agricultural processing facility projects. The bill is introduced and parallels a companion use tax exemption for the same project category. Specific eligibility thresholds, project definitions, and fiscal impact remain to be recorded from the bill text.

Evidence log

• 2025-10-30 — Sales tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm.: cross-connection with use-tax-agricultural-processing-exemption: HB 5169 (sales tax) pairs with the parallel use tax exemption bill to create a matched sales/use tax carve-out for large agricultural processing facility projects — the standard two-bill structure for Michigan transactional tax exemptions. (novelty: 2)

Open questions

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