Chamber Advocates for Passage of PPE Tax Exemptions for Michigan Business

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Matt Patton, director of government relations for the Detroit Regional Chamber, testified before the Michigan Senate Finance Committee on Wednesday, May 12, to advocate for House Bill 4224 and 4225, which would allow a business to claim personal protective equipment (PPE) tax exemptions in response to the COVID-19. Patton had previously testified before the House in February.

Matt Patton, Director of Government Relations, Detroit Regional Chamber.

The bills would only exempt PPE and other tangible personal property from the taxes if they were specifically used in relation to COVID-19. If the bill passes the Senate and the Governor signs it into law, businesses with written COVID-19 safety plans required by the Michigan Occupational Safety and Health Administration would not have to pay the state’s 6% sales and use tax on purchases of PPE and disinfecting supplies. House Bill 4224 and House Bill 4225 both passed 104-6, with broad bipartisan support.

“Throughout this pandemic, small businesses around our state have paid taxes on the equipment needed to remain operational at great cost to their bottom line,” said Matt Patton, director of government relations for the Chamber. “Despite a bitterly disagreeable political climate, these bills brought Democrats and Republicans together in order to make life-saving PPE more affordable by stopping the government from profiting off of the necessity of it.”

Patton testified on behalf of business before the House Rules and Competitiveness Committee in February, which was a critical step in these bills’ ultimate passage. In that committee hearing, Democratic co-sponsor of the bill Rep. Sarah Anthony (D-Lansing) said she was impressed by the perseverance of small businesses fighting to keep their doors open during the pandemic.

The bills’ exemptions would be retroactive and would apply beginning March 10, 2020, until Dec. 31, 2021. The next step for the bills would are a vote in the Senate Finance Committee.

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