HB5397

Use tax: exemptions; data center exemption; eliminate. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & repeals sec. 4cc of 1937 PA 94 (MCL 205.94cc).

Introduced·12/17/25
Introduced Text

Michigan HB5397 repeals the exemption for data centers from the use tax.

Michigan HB5397 repeals the exemption for data centers from the use tax, ensuring that data centers will no longer be exempt from this tax. The bill amends the Michigan Compiled Laws to remove the exemption outlined in section 4cc of the use tax act. This change will affect data centers by making them subject to the use tax, which was previously exempt. The repeal of this exemption is intended to ensure that data centers contribute to the state's revenue through the use tax.

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Where it stands

Current
Economic Competitiveness Committee
Next
Committee decision

Sponsors

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9
2
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Democratic CaucusRepublican Caucus

History

Dec 18, 2025

House

Bill Electronically Reproduced 12/17/2025

Dec 17, 2025

House

Introduced By Representative Rep. James Desana

Dec 17, 2025

House

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