Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).
Key claim: A Michigan Senate bill would prohibit collecting sales tax on utility bills by amending section 4n of the General Sales Tax Act.
Abstract
Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n). Sponsor: Sen. Jonathan Lindsey ® + 5 co-sponsors Latest action (2026-06-02): Senate Co-sponsor(s) Named: Lana Theis
Why this matters
Exempting utility bills from Michigan’s 6% sales tax would reduce household and business utility costs while decreasing state sales tax revenue, which partly funds schools and local government. The proposal fits a broader pattern of targeted sales tax carve-outs and would shift the tax base if enacted.