ANN ARBOR – The now-daily uniform of personal protective equipment wouldn’t have the 6% sales and use tax attached to it under legislation that moved out of a House committee Thursday morning.
HB 4224 from Rep. Jim Lilly (R-Park Twp.) and HB 4225 from Rep. Sarah Anthony (D-Lansing) allows for business enterprises to be reimbursed by Treasury for taxes paid while purchasing PPE. To receive a refund, a copy of the establishment’s COVID-19 safety protocol plan must be included.
According to the House Fiscal Agency and “based on national data scaled to Michigan,” the legislation is estimated to decrease sales and use tax revenue by $3 million to $4 million. However, Treasury said $18.5 million would be the lost revenue to the state, schools and local units of government.
“Similar tax breaks are already afforded to those companies purchasing PPE for the purpose of manufacturing,” Lilly said to the committee on Feb. 18. “These bills are aimed at providing some relief to employers who are keeping their employees safe while continuing their business activity — something that’s vital to our economy.”
This story was provided by the Small Business Association of Michigan.