MI HB5175

Creates an annual sales tax holiday on the third Saturday of August for eligible back-to-school items, exempting clothing ($100 per item), school supplies ($20 per item), computers ($1,000 per computer for personal use), and school computer supplies ($500 per item).

Excludes from the exemption clothing accessories, sport/recreational equipment, protective equipment, items for business use, and furniture.

Defines "clothing" broadly to include apparel like underwear, shoes, hats, gloves, and uniforms, but excludes sewing materials, costume masks, and belt buckles sold separately.

Establishes detailed rules for layaway sales, discounts, rain checks, exchanges, and returns to determine tax eligibility during the exemption period.

Requires the Department to provide at least 60 days' notice before the exemption period and specifies that the seller's time zone determines when the tax holiday period applies.