Bill > HB4119

This bill amends Michigan's General Sales Tax Act to modify sales tax exemptions for aircraft and aviation equipment. The bill provides tax exemptions for sales of aircraft to domestic air carriers when the aircraft weighs at least 6,000 pounds and is used for transporting cargo or passengers. It also exempts sales of aircraft parts and materials, excluding shop equipment and fuel, with specific conditions related to the aircraft's location and registration status. The bill clarifies definitions of key terms like "aircraft" (excluding unmanned aerial vehicles), "based in this state" (hangared or stored for certain periods), and "domestic air carrier" (primarily engaged in commercial air transport). Additionally, the bill outlines conditions for tax exemptions when an aircraft is temporarily located in Michigan for sale, evaluation, customization, maintenance, or repair, such as leaving the state within 15 days and not being registered in Michigan after the sale. The bill will take effect 90 days after enactment, and the legislature intends to appropriate funds to compensate for any potential revenue loss to the state school aid fund.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4119