MI HB4635

Amends the Use Tax Act to modify exemptions and definitions related to prepared food and eating utensils.

Clarifies that "food sold with eating utensils provided by the seller" depends on the seller's prepared food sales percentage: sellers with over 75% prepared food sales must make utensils available or hand them to purchasers for multi-serving items, while sellers with 75% or less must hand utensils to purchasers as business practice.

Establishes that sellers must calculate their prepared food sales percentage annually within 90 days of their tax year beginning, based on prior year sales data, using a formula dividing prepared food sales by total food sales.

Defines "food sold in an unheated state by weight or volume as a single item" to mean food where the price is determined by multiplying per-unit price by weight or volume, and specifies that bakery items sold without utensils are not considered prepared food.

Excludes utensils pre-packaged by manufacturers (NAICS code 311) from being considered as provided by the seller, but includes utensils packaged by non-manufacturers.