Sales Tax Exemption for Aircraft & Aviation Equipment

Current understanding

HB 4119 proposes to amend section 4x of the General Sales Tax Act (1933 PA 167, MCL 205.54x) to exempt the purchase of certain aircraft and aviation equipment from Michigan’s 6% sales tax. The bill has been introduced; specific scope (which aircraft classes, which equipment categories, and any conditions such as commercial use or weight thresholds) will be recorded once the bill text is analyzed. If enacted, buyers of qualifying aircraft and aviation equipment would see reduced acquisition costs while the state would forgo the associated sales tax revenue.

Evidence log

• 2025-02-25 — Use tax: exemptions; purchase of certain aircraft and aviation equipment; exempt. Amends sec. 4k of 1937 PA 94 (MCL 205.94k). TIE BAR WITH: HR 0002’25: HB 4120 (companion to the sales tax measure, tie-barred with HR 0002’25) amends sec. 4k of the Use Tax Act (1937 PA 94, MCL 205.94k) to exempt purchases of certain aircraft and aviation equipment from use tax, mirroring the sales tax exemption on the use-tax side. (novelty: 2)

Open questions

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