Bill > HB5396

This bill eliminates the sales tax exemption for data centers by repealing section 4ee of the General Sales Tax Act. Specifically, the bill removes language that previously allowed data center equipment to be exempt from sales tax, which means businesses purchasing equipment for data centers will now be required to pay sales tax. The bill also modifies the existing law to remove reporting requirements related to the data center exemption and adjusts how revenue losses from various tax exemptions are calculated and reported to the state school aid fund. The change appears to be part of a broader effort to reduce tax exemptions and potentially increase state revenue, with the eliminated exemption potentially generating additional tax income for the state. By removing this specific exemption, the bill may impact businesses in the technology and data infrastructure sectors that previously benefited from tax-free equipment purchases.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5396