HB 5436 Summary

• Clarifies that property used or consumed in industrial processing is exempt from use tax if the finished product is subject to sales tax or use tax under Michigan law.

• Adds language specifying that industrial processing includes converting tangible personal property "used for a purpose that subjects the product to the tax" under the use tax act.

• Applies the same clarification to the definition of "industrial processor" to ensure consistency across the statute.

• Enacting section states this amendment clarifies existing law as originally intended regarding industrial processing exemptions for property subject to Michigan sales or use tax.