SENATE BILL NO. 1180

October 01, 2020, Introduced by Senators HERTEL and MACGREGOR and referred to the Committee on Economic and Small Business Development.

A bill to amend 1937 PA 94, entitled

"Use tax act,"

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

the people of the state of michigan enact:

Sec. 4hh. (1) Beginning January 1, 2021, the tax under this act does not apply to the storage, use, or consumption of an automated consumer goods micro-fulfillment system or system parts by a retailer.

(2) As used in this section:

(a) "Automated consumer goods micro-fulfillment system" means an automated goods-handling system that temporarily stores, selects, retrieves, assembles, and stages consumer goods ordered by a consumer for delivery to the consumer or distribution to a retail store where the goods are picked up by the consumer and that occupies not less than 10,000 square feet of space in a building in which at least half of the building's square footage is used as an operating retail store and is owned, leased, or used by a retailer.

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

(c) "System parts" means machinery, equipment, repair parts, and computer software that are component parts of an automated consumer goods micro-fulfillment system.