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MI SB0776

MI SB0776
Use tax: other; exemptions for certain watercraft; provide for. Amends secs. 2 & 4 of 1937 PA 94 (MCL 205.92 & 205.94).


summary

Introduced
02/04/2026
In Committee
02/04/2026
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1937 PA 94, entitled"Use tax act,"by amending sections 2 and 4 (MCL 205.92 and 205.94), section 2 as amended by 2023 PA 94 and section 4 as amended by 2021 PA 109.

AI Summary

This bill amends Michigan's Use Tax Act to provide exemptions for certain watercraft. Specifically, it clarifies that a watercraft is considered "documented" if it is registered with the U.S. Coast Guard, and it exempts from use tax the purchase of a watercraft for which a 15-day permit is issued. Additionally, the bill caps the use tax on the purchase of a recreational watercraft at $18,000, meaning any tax exceeding that amount is exempt, and it clarifies that this exemption does not affect existing provisions for trade-ins of titled or documented watercraft. The bill also defines "recreational watercraft" based on its primary use for pleasure or recreation, as indicated on registration or documentation applications, or through a purchaser's certification.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection (on 02/04/2026)

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