Bill > HB4120

This bill amends the Michigan Use Tax Act to modify tax exemptions for aircraft and aviation equipment. The legislation expands the existing tax exemption for domestic air carriers by simplifying the requirements for aircraft used in transporting air cargo, passengers, or a combination of both, specifically applying to aircraft with a maximum certificated takeoff weight of at least 6,000 pounds. The bill removes previous detailed conditions about aircraft weight and passenger seating configurations. It also clarifies definitions related to aircraft, including defining "aircraft" as an aerial vehicle used in aviation (excluding unmanned aerial vehicles) and refining terms like "based in this state," "domestic air carrier," and "registered in this state." Additionally, the bill maintains existing provisions about temporary aircraft location and sales, such as requiring aircraft to leave the state within 15 days and not be permanently based or registered in Michigan. The amendment aims to provide more straightforward tax exemptions for aircraft and aviation equipment while preserving the intent of supporting domestic air carriers. The bill will take effect 90 days after enactment and includes legislative intent to appropriate funds to compensate for any potential revenue losses to the state school aid fund.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4120