HB5396

Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee).

Introduced·12/17/25
Introduced Text

Michigan HB5396 eliminates sales tax exemptions for data centers.

Michigan HB5396 amends the Michigan sales tax law by repealing the exemption for data centers, ensuring that sales tax is collected on these services. The bill also includes provisions for the distribution of tax revenue to various state funds, including the state school aid fund and the Michigan health initiative fund. The changes aim to ensure that revenue lost due to the data center exemption is accounted for and that funds are appropriately allocated to support state programs and services.

Included in complete analysis

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

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Where it stands

Current
Economic Competitiveness Committee
Next
Committee decision

Sponsors

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10
2
RR
Democratic CaucusRepublican Caucus

History

Dec 18, 2025

House

Bill Electronically Reproduced 12/17/2025

Dec 17, 2025

House

Introduced By Representative Rep. Dylan Wegela

Dec 17, 2025

House

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