Bill > HB5496

This bill, titled the "wireless communications device excise tax act," proposes to impose a new excise tax, which is a tax on specific goods or services, on the retail sale of wireless communications devices in Michigan, starting January 1, 2026. A wireless communications device is defined as any electronic device that can text, make calls, access the internet, send/receive photos and videos, or produce email, but it specifically excludes "basic telephones" which are devices primarily for voice calling that cannot support third-party applications or internet access via apps or web browsers. This tax will only apply to devices intended for the primary use of individuals under 18 years of age, and it will be levied at a rate of 32% of the purchase price, with the purchaser being responsible for paying the tax. The collection of this excise tax will be handled by the department of treasury in the same way as the state's use tax, which is a tax on goods purchased out-of-state for use within the state. The revenue generated from this tax, including any penalties, will be deposited into a newly created "children's mental health and safety fund" within the state treasury, which can be used for administering the act itself and for supporting programs aimed at improving the mental health and safety of children.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5496