MI SB1178

Exempts sales of automated consumer goods micro-fulfillment systems and system parts from Michigan sales tax, effective January 1, 2021.

Defines an "automated consumer goods micro-fulfillment system" as an automated goods-handling system that stores, selects, retrieves, assembles, and stages consumer goods for delivery or in-store pickup, occupying at least 10,000 square feet in a building where at least half the space is used as an operating retail store.

Limits the exemption to systems owned, leased, or used by retailers for handling consumer goods (finished goods for personal, family, or household use).

Defines "system parts" as machinery, equipment, repair parts, and computer software that are component parts of a qualifying micro-fulfillment system.