MI HB4636

Modifies the sales tax exemption definition for "prepared food" by establishing a "prepared food sales percentage" threshold of 75% to determine when food sold with eating utensils is taxable.

For sellers with prepared food sales exceeding 75%, eating utensils must be made available to purchasers, or given to purchasers for items with 4 or more servings packaged as a single item.

For sellers with prepared food sales at 75% or less, the business practice of giving or handing eating utensils to purchasers determines whether food is taxable.

Requires sellers to calculate their prepared food sales percentage annually within 90 days of the tax year beginning, based on prior year sales data, using a numerator of prepared food sales and denominator of total food and food ingredient sales.

Clarifies that bakery items sold without eating utensils, and food sold in an unheated state by weight or volume as a single item without eating utensils, are not considered taxable prepared food.