HB 6574 Summary

• Amends the General Sales Tax Act to clarify and expand the agricultural production exemption for tangible personal property used in farming and related activities.

• Replaces restrictive language limiting exemptions to "owner-operators" with broader language allowing exemptions for members of unitary business groups, as defined under the Michigan Business Tax Act.

• Defines "agricultural production" to include tilling, planting, harvesting crops; breeding and raising livestock, poultry, and horticultural products; and direct fishing by owner-operators, while explicitly excluding charter fishing businesses.

• Defines "biomass" to include crop residue used for energy production, agricultural crops grown specifically for energy, and organic byproducts or waste from agricultural production, all of which qualify for the agricultural exemption.

• Exempts agricultural equipment and supplies including machinery capable of harvesting biomass, agricultural land tile and irrigation pipe, portable grain bins, and grain drying equipment fueled by natural or propane gas.