MI HB4054

Expands industrial processing tax exemptions to include production, manufacturing, or recycling of aggregate (sand, gravel, crushed stone, slag, recycled concrete, recycled asphalt, and geosynthetic aggregates) when used for construction, maintenance, repair, or reconstruction of real property in Michigan.

Requires the Michigan Department of Treasury to cancel within 90 days all outstanding balances on notices of intent to assess and final assessments issued before the effective date related to the newly exempt aggregate processing activities.

Prohibits the department from issuing new assessments for aggregate-related industrial processing activities for any tax period that was open under the statute of limitations before the bill's effective date.

Defines "aggregate" as common variety building materials and clarifies that aggregate-related activities qualify as industrial processing if the aggregate is subject to Michigan's use tax.

Takes effect immediately upon enactment but is contingent on Senate Bill No. 97 of the 102nd Legislature being enacted into law; legislature intends to annually appropriate funds to compensate the state school aid fund for any revenue loss.