HB4375

Use tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: HB 4376'25

Chamber Passed·10/21/25

Michigan HB4375 amends the use tax to provide exemptions for trade-in values of personal electronics and other specified items.

Michigan HB4375 amends the use tax to provide exemptions for the trade-in value of personal electronics, motor vehicles, recreational vehicles, and titled watercraft when the agreed-upon value is separately stated on the invoice. It also exempts delivery and installation charges if separately stated, and excludes certain charges like employee discounts, interest, financing, and taxes imposed directly on the consumer. The bill specifies that these exemptions do not apply to leases or rentals and mandates the cancellation of outstanding balances related to certain charges by a specified date.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Last
Passed the House · 71–33 · Oct 21, 2025
Current
Finance, Insurance, And Consumer Protection Committee
Next
Senate floor vote

Sponsors

D
1
16
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Democratic CaucusRepublican Caucus

Roll Call Votes

71 Yea

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33 Nay

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Calendar

Sep 9, 2025

10:30 AM

House Finance

May 13, 2025

10:30 AM

House Finance

History

Oct 23, 2025

Senate

Passed By House With Immediate Effect

Oct 23, 2025

Senate

Passed By House With Immediate Effect

Oct 23, 2025

Senate

Referred To Committee On Finance, Insurance, And Consumer Protection