MI SB0198

Amends Michigan's use tax law to clarify exemptions for property used in industrial processing activities, effective July 13, 2010.

Extends industrial processing exemptions to include front-end loaders, forklifts, and log loaders used at sawmill sites for unloading logs from trucks and loading finished lumber onto trucks for transportation.

Defines eligible property for exemption as machinery, equipment, fuel, energy, and materials consumed in production activities, but excludes office equipment for non-industrial purposes, finished goods storage, and vehicles requiring highway permits.

Limits exemptions to the percentage of property actually used for the exempt industrial processing purpose, as determined by a reasonable formula approved by the Michigan Department of Treasury.

Enactment is contingent upon House Bill No. 4404 of the 95th Legislature being enacted into law.