state of michigan

100th Legislature

Regular session of 2020

Introduced by Senators Nesbitt, MacGregor, Outman, VanderWall and Schmidt

ENROLLED SENATE BILL No. 1150

AN ACT to amend 1937 PA 94, entitled “An act to provide for the levy, assessment, and collection of a specific excise tax on the storage, use, or consumption in this state of tangible personal property and certain services; to appropriate the proceeds of that tax; to prescribe penalties; and to make appropriations,” (MCL 205.91 to 205.111) by adding section 4gg.

The People of the State of Michigan enact:

Sec. 4gg. (1) Beginning January 1, 2021, the tax under this act does not apply to the storage, use, or consumption of a fully automated consumer goods handling system or system parts by a wholesaler for fulfillment of orders to persons engaged in the business of making sales at retail of consumer goods.

(2) As used in this section:

(a) “Consumer goods” means finished goods for use primarily for personal, family, or household purposes.

(b) “Fully automated consumer goods handling system” means a fully automated, integrated goods handling system that separates, sorts, temporarily stores, recombines, and assembles palletized units of consumer goods and that occupies not less than 190,000 square feet of space in a facility owned, leased, or used by a wholesaler.

(c) “System parts” means supply chain optimization machinery, equipment, repair parts, and computer software that are component parts of a fully automated consumer goods handling system.

(d) “Wholesaler” means a person that purchases consumer goods from a manufacturer, producer, or other supplier and sells those consumer goods to another person for sale at retail.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved___________________________________________

____________________________________________________

Governor