HB 6061 Summary

• Establishes a 6% combined use tax rate on tangible personal property and services, split between state share and local community stabilization share levied by an authority.

• Adds exemption from use tax for tangible personal property used solely for personal, nonbusiness purposes purchased outside Michigan if brought into the state more than 90 days after purchase (non-residents) or more than 360 days after purchase (residents).

• Applies use tax to persons who acquire property for tax-exempt use but subsequently convert it to taxable use, including interim taxable uses, without regard to any later tax-exempt use.

• Sets specific revenue targets for the local community stabilization share for fiscal years 2015-2016 through 2027-2028, ranging from $96.4 million to $572.6 million, with automatic adjustments for fiscal year 2028-2029 and beyond based on personal property growth factor.

• Requires collection of use tax on vehicles, ORVs, manufactured housing, aircraft, snowmobiles, and watercraft before transfer of registration or title, with exemptions for transfers between disabled veterans and certain business reorganizations.