MI HB6069

Adds new section 3d to the Use Tax Act, effective January 1, 2026, imposing a 6% use tax on seven categories of services: accommodation and food services, administrative and support services, arts and entertainment, educational services, real estate leasing, nonfinancial intangible asset leasing, and professional and scientific services.

Exempts from the new service tax: construction, transportation and warehousing, health care and social assistance, and other services (except public administration), though tangible personal property used in these services remains taxable.

Dedicates revenue from the 4% tax on services (of the 6% total rate) collected beginning January 1, 2026, to water infrastructure and transportation infrastructure projects, with at least 30% required for water infrastructure.

Provides $100,000 appropriation for the fiscal year ending September 30, 2025, to implement the new service tax requirements.

Makes technical changes to section 3 by replacing "shall" with "must" and updating references to the department of treasury and mobile home commission terminology.