SB 159 Summary

• Exempts delivery and installation charges from use tax if separately stated on invoices and taxpayer maintains separate books and records, excluding charges for utilities (electricity, natural gas, artificial gas).

• Requires the Department of Treasury to cancel outstanding balances on delivery and installation charges within 90 days for both notices of intent to assess and final assessments issued before the bill's effective date.

• Prohibits new assessments for delivery and installation charges for tax periods before the effective date that remain open under the statute of limitations.

• Adds definition of "utility" to include entities regulated by the Michigan Public Service Commission and persons operating equipment for producing or delivering electricity within the state.

• Modifies use tax revenue distribution to the state school aid fund to include revenue lost from the new delivery and installation charge exemption under Section 2(1)(f)(xv).