HB 4018 Summary

• Amends the General Sales Tax Act to revise Section 1a (MCL 205.51a) by adding and clarifying numerous tax-related definitions.

• Defines "prewritten computer software" as computer software not designed and developed to the specifications of a specific purchaser, excluding software accessed on another person's server, and specifies that combinations of prewritten software and customized modifications are included.

• Establishes definitions for medical and health-related items including durable medical equipment, mobility enhancing equipment, prosthetic devices, and prescriptions to clarify their tax treatment.

• Clarifies delivery charges allocation methods when shipments include both exempt and taxable property, allowing sellers to use either sales price or weight-based fractions to allocate charges.

• Declares the amendments to be curative legislation expressing the original legislative intent regarding taxation of prewritten computer software under the General Sales Tax Act.