SENATE BILL NO. 957

A bill to amend 1937 PA 94, entitled

"Use tax act,"

(MCL 205.91 to 205.111) by adding section 4gg.

the people of the state of michigan enact:

Sec. 4gg. (1) Beginning January 1, 2023, the tax under this act does not apply to the storage, use, or consumption of a fully automated consumer goods handling system or system parts by a wholesaler for fulfillment of orders to persons engaged in the business of making sales at retail of consumer goods.

(2) As used in this section:

(a) "Consumer goods" means finished goods for use primarily for personal, family, or household purposes.

(b) "Fully automated consumer goods handling system" means a fully automated, integrated goods handling system that separates, sorts, temporarily stores, recombines, and assembles palletized units of consumer goods owned, leased, or used by a wholesaler.

(c) "System parts" means supply chain optimization machinery, equipment, repair parts, and computer software that are component parts of a fully automated consumer goods handling system.

(d) "Wholesaler" means a person that purchases consumer goods from a manufacturer, producer, or other supplier and sells those consumer goods to another person for sale at retail.