MI HB4658

Eliminates the sales tax exemption for tangible personal property sold to inmates in penal or correctional institutions purchased with scrip or its equivalent, effective October 1, 2012.

Maintains all existing sales tax exemptions for nonprofits, religious organizations, agricultural businesses, educational institutions, and various other entities as previously established.

Exemptions apply only to the extent property is used for the stated exempt purpose, with usage percentages determined by reasonable formulas approved by the department.

Effective immediately upon approval by the Governor on May 8, 2012, though the prisoner purchase exemption phase-out takes effect October 1, 2012.