Update: Chamber-Backed PPE Tax Relief Bills Pass in Michigan Senate

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On Wednesday, June 2, the Michigan Senate passed their version of a package of Personal Protective Equipment (PPE) tax relief bills. The Detroit Regional Chamber helped introduce this bipartisan legislation in the Michigan House of Representatives and has advocated for its passage.

Once the Michigan House concurs, the bills will go to Gov. Whitmer for her signature. This legislation will help Michigan businesses offset the unplanned cost of operating during the pandemic.

Previously, Matt Patton, director of government relations for the 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.

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 Governor signs them 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 Patton. “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 also 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.


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