Use tax: collections; collection of use tax on utility bills; prohibit. Amends sec. 4n of 1937 PA 94 (MCL 205.94n).

Michigan Senate Bill 0987, introduced on May 20, 2026, aims to amend Section 4n of the Use Tax Act (1937 PA 94, MCL 205.94n) to prohibit the collection of use tax on utility bills. This means that utility companies would no longer be required to collect use tax from consumers on their utility services.

Supporters of SB0987 argue that eliminating the use tax on utility bills will reduce the financial burden on consumers, especially during times of economic hardship. They believe this measure will make utility services more affordable for Michigan residents.

Opponents of SB0987 contend that removing the use tax on utility bills could lead to a significant decrease in state revenue, potentially affecting funding for public services. They also express concern that the bill may disproportionately benefit higher-income households that consume more utilities.