Sales tax: exemptions; exemption for building materials purchased for the construction of a new single-family residence; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4hh. TIE BAR WITH: HB 6269’26
Key claim: This bill would exempt building materials purchased to construct a new single-family home from Michigan sales tax.
Abstract
(HB6270 · 103rd Legislature) Sales tax: exemptions; exemption for building materials purchased for the construction of a new single-family residence; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4hh. TIE BAR WITH: HB 6269’26 Sponsor: Rep. Steve Frisbie ® + 16 co-sponsors In committee: H Economic Competitiveness Latest action (2026-08-27): Bill Electronically Reproduced 08/26/2026
Why this matters
Removing the 6% sales tax on building materials for new single-family homes would reduce upfront construction costs for builders and, potentially, purchase prices for buyers, while narrowing the state’s sales tax base — a trade-off that pits housing affordability against General Fund and School Aid Fund revenue. The exemption is narrowly targeted to one housing type (new single-family residences), leaving multifamily, rehab, and commercial construction unaffected. As an introduced bill tie-barred to a companion use-tax measure, its fiscal impact and implementation details remain to be scored.