Back to Michigan

SB986 • 2026

Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).

Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Jonathan Lindsey (District 17), John Damoose (District 37), Kevin Daley (District 26), Dan Lauwers (District 25), Roger Victory (District 31), Lana Theis (District 22)
Last action
2026-06-02
Official status
SENATE CO-SPONSOR(S) NAMED: LANA THEIS
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).

Sales tax: collections; collection of sales tax on utility bills; prohibit.

What This Bill Does

  • Sales tax: collections; collection of sales tax on utility bills; prohibit.
  • Amends sec.
  • 4n of 1933 PA 167 (MCL 205.54n).

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-06-02 SJ 48 Pg. 571

    SENATE CO-SPONSOR(S) NAMED: LANA THEIS

  2. 2026-05-20 SJ 45 Pg. 546

    INTRODUCED BY SENATOR JONATHAN LINDSEY

  3. 2026-05-20 SJ 45 Pg. 546

    REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS

Official Summary Text

Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).

Current Bill Text

Read the full stored bill text
ERE S05676'25_SB0986_INTR_1 kcu4xv

SENATE BILL NO. 986

A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4n (MCL 205.54n), as added by 1994 PA 111.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4n. The sale for residential use of electricity, natural 1
or artificial gas, or home heating fuels is exempt from the sales 2
tax at the additional rate of 2% approved by the electors on March 3
15, 1994. For purposes of applying the sales tax at the additional 4
rate of 2% to the sale of electricity, natural or artificial gas, 5
or steam, the taxpayer, with respect to all its customers to which 6
May 20, 2026, Introduced by Senators LINDSEY, DAMOOSE, DALEY, LAUWERS and
VICTORY and referred to Committee on Government Operations.
2
Final Page
ERE S05676'25_SB0986_INTR_1 kcu4xv
the additional rate of 2% applies, shall prorate usage for a period 1
that includes May 1, 1994 based on the number of days occurring 2
after April 30, 1994 if the taxpayer has 100,000 or more customers 3
in this state. If the taxpayer has less than 100,000 customers in 4
this state, the taxpayer shall either prorate usage for a period 5
that includes May 1, 1994 based on the number of days occurring 6
after April 30, 1994, or shall apply the additional rate of 2% 7
beginning with the first bill that covers a usage period that 8
begins after April 30, 1994.tax under this act. 9