Sales tax: exemptions; sales tax holiday for back-to-school clothing and school supplies; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & adds secs. 12a & 25a.

Michigan Senate Bill 498 proposes a sales tax holiday for back-to-school shopping. Between August 8 and August 24 each year from 2025 to 2030, consumers can purchase eligible clothing items priced under $100 and school supplies priced under $20 without paying sales tax. To benefit, buyers must submit a refund claim with proof of purchase within 30 days. Excluded items include accessories, sports gear, protective equipment, and items for business use, except for teachers buying classroom supplies.

Supporters argue that the bill provides financial relief to families during the costly back-to-school season, making education-related purchases more affordable. It is seen as a measure to ease the financial burden on middle-income families by offering temporary tax relief on essential items.

Critics express concerns about the administrative burden on consumers, who must submit refund claims to receive the tax benefit. There are also worries about potential revenue loss for the state and the exclusion of certain items, which may limit the bill's effectiveness in providing comprehensive relief.