MI SB1149

Sales of fully automated consumer goods handling systems and system parts to wholesalers are exempt from Michigan sales tax, effective January 1, 2021.

"Fully automated consumer goods handling system" is defined as an integrated goods handling system occupying at least 190,000 square feet that separates, sorts, stores, recombines, and assembles palletized consumer goods units.

"System parts" includes supply chain optimization machinery, equipment, repair parts, and computer software that are components of a fully automated consumer goods handling system.

"Wholesaler" is defined as a person who purchases consumer goods from manufacturers or suppliers and sells them to retailers.

The act takes immediate effect upon passage.