SB-0335 Summary

• Amends the General Sales Tax Act to revise definitions in section 1a, including adding or clarifying definitions for alcoholic beverages, computers, computer software, dietary supplements, drugs, durable medical equipment, and other tangential items.

• Establishes that "prewritten computer software" excludes granting the right to use prewritten software installed on another person's server, clarifying the taxable status of cloud-based software services.

• Defines "prewritten computer software" to include combinations of multiple software programs, custom software sold to persons other than the original purchaser, and modifications to prewritten software with separately stated charges.

• Clarifies delivery charge allocation methods when shipments contain both exempt and taxable property, allowing sellers to use either a sales price fraction method or a weight-based fraction method.

• Designates the amendment as curative legislation intended to express the original legislative intent regarding taxation of prewritten computer software under Michigan's sales tax law.