LANSING, Mich. — Sen. Joseph Bellino’s legislation to clarify how a state tax exemption applies to producing aggregates like crushed stone and gravel products and industrial and recycled materials was signed by Gov. Gretchen Whitmer on Monday.
“This is about helping reduce taxes on Michigan businesses struggling with ever-increasing costs due to high inflation,” said Bellino, R-Monroe. “I want to thank the governor for signing this bill to provide this relief by clarifying how state tax exemptions apply to producing aggregates, like crushed stone and gravel and recycled materials that are critical to improving our roads and reducing trash in our landfills.”
Equipment used in processing aggregates includes loaders, feeders, crushers, screens, conveyors, dust control equipment and generators. Recent audits from the Michigan Department of Treasury have disputed the use tax industrial processing exemption on this equipment.
Bellino’s bill, Senate Bill 97, now Public Act 27 of 2023, amends the state’s Use Tax Act to clarify that the industrial processing exemption for machinery and equipment used in aggregate production is applicable as long as use tax is paid on the product.
House Bill 4054, now PA 30 of 2023, amends the state’s General Sales Tax Act by adding the production, manufacturing, or recycling of aggregate to the industrial processing exemption if the aggregate is subject to the use tax.
Both measures hold the state’s School Aid Fund harmless.