MI HB5805

Establishes annual sales tax holiday from 12:01 a.m. on the third Saturday of August through 11:59 p.m. on the third Sunday of August each year for qualifying back-to-school items.

Exempts clothing priced at $100.00 or less per item, school supplies priced at $20.00 or less per item, computers for personal use priced at $1,000.00 or less, and school computer supplies priced at $500.00 or less from sales tax during the holiday period.

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

Requires the department to provide at least 60 days advance notice before the exemption period begins and establishes detailed rules for layaway sales, discounts, exchanges, rain checks, and returns during the holiday period.

Specifies that the seller's time zone determines the authorized time period when the purchaser and seller are in different time zones, and provides that rain checks issued before the holiday qualify for exemption if used during the holiday period.