MI HB5678

Expands sales tax exemption to include over-the-counter drugs purchased pursuant to a prescription, in addition to existing exemptions for prescription drugs.

Maintains existing exemptions for food and food ingredients (except prepared food intended for immediate consumption), live animals for slaughter, and federal food stamp purchases.

Defines "prepared food" as food sold heated, mixed food ingredients, or food sold with eating utensils provided by the seller.

Excludes from "prepared food" definition: bakery items sold without utensils, raw meats/fish/eggs, foods only cut or repackaged, and unheated food sold by weight or volume without utensils.

Establishes vending machine tax calculation method allowing taxpayers to use either actual gross proceeds or 45 percent of proceeds from taxable/exempt items (excluding carbonated beverages).