HB 5366 Summary

• Levies a 25-cent per gallon excise tax on architectural paint (interior and exterior coatings in containers of 5 gallons or less) sold in Michigan.

• Tax is collected from manufacturers if paint is made in Michigan, from wholesalers/purchasers if made outside Michigan but sold there, or from the end purchaser if made and purchased outside the state.

• Excise tax is administered by the state treasurer using existing use tax collection procedures and the general tax administration statute.

• Taxpayers may pass the excise tax cost to buyers by adding it to the sale price of architectural paint.

• All revenue from the excise tax is deposited into a restricted state treasury account dedicated exclusively to lead abatement and lead reduction programs in residential dwellings under the public health code.