MI SB1365

Sets Michigan use tax rate at 6% on tangible personal property and specified services, with tax applying to property brought into the state within 90 days of purchase or within 360 days for state residents.

Exempts tangible personal property used solely for personal, nonbusiness purposes if purchased outside Michigan and brought into the state after 90 days (non-residents) or 360 days (residents) from the date of purchase.

Requires use tax collection before transfer of vehicles, ORVs, manufactured housing, aircraft, snowmobiles, and watercraft, with collection by the Secretary of State, Department of Licensing and Regulatory Affairs, or Department of Treasury depending on the asset type.

Exempts certain transfers from use tax including those to family members, estate beneficiaries, business reorganizations where beneficial ownership is unchanged, and insurance company acquisitions of distressed vehicles.

Eliminates the fiscal year 2010 provision directing $9,500,000 to the Michigan promotion fund and clarifies that manufactured housing tax collection is handled by the Department of Licensing and Regulatory Affairs (renamed from Department of Consumer and Industry Services).