MI SB0887

Exempts contractors engaged in constructing, altering, repairing, or improving real estate from use tax on tangible personal property purchased by the property owner for installation by the contractor.

Applies only when the tangible personal property is purchased by another person who is not exempt from use tax or general sales tax under 1933 PA 167.

Requires the tangible personal property be acquired solely for affixing to real estate on behalf of the property owner.

Effective date: June 20, 2018.

Clarifies existing law to establish that use tax does not apply to materials installed by contractors when purchased by property owners for that specific purpose.