Bill > HB6269

This bill amends Michigan's Use Tax Act—a tax levied on the purchase, storage, or consumption of tangible goods—to temporarily exempt building materials purchased for the construction of new single-family and small multi-family residences (such as townhouses, duplexes, or modular homes) from the state's use tax. To qualify for this two-year tax break, the property owner, developer, or contractor must purchase materials like lumber, roofing, plumbing, and electrical supplies while holding a valid, active building permit. The legislation includes safeguard rules stating that if a project is abandoned, a building permit lapses, or materials are not actually built into the structure before a certificate of occupancy is issued, the exemption is canceled and the materials become subject to the use tax. Additionally, the Michigan Department of Treasury, in consultation with the Michigan State Housing Development Authority (an agency that works to provide affordable housing and economic development), is required to submit annual reports to the legislature and the governor measuring the exemption's impact on home construction, job creation, and state revenue. Finally, the bill is tied to a companion measure, meaning it cannot become law unless House Bill 6270 is also enacted.