Use tax: other; exemptions for certain watercraft; provide for. Amends secs. 2 & 4 of 1937 PA 94 (MCL 205.92 & 205.94).

Michigan Senate Bill 776, introduced on February 4, 2026, proposes amendments to the state's use tax law to exempt certain watercraft from taxation. Specifically, it seeks to modify sections 2 and 4 of the 1937 Public Act 94 (MCL 205.92 & 205.94) to provide these exemptions. The bill is sponsored by Senator Kevin Hertel (D) and co-sponsored by Senator John Damoose (R). As of its introduction, the bill has been referred to the Senate Committee on Finance, Insurance, and Consumer Protection for further consideration.

While specific media coverage on SB0776 is limited, proponents of similar tax exemption bills often argue that such measures can stimulate economic activity by encouraging the purchase of watercraft, benefiting local businesses and the broader maritime industry. Additionally, bipartisan sponsorship suggests a collaborative effort to address constituents' interests across party lines.

Critics of tax exemption bills like SB0776 may express concerns about potential revenue losses for the state, which could impact funding for public services. They might also argue that such exemptions disproportionately benefit higher-income individuals who are more likely to purchase watercraft, thereby raising questions about tax fairness and equity.