2025 House Bill 5396

Sales tax: exemptions; data center exemption; eliminate.

A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 25 (MCL 205.75), as amended by 2025 PA 17; and to repeal acts and parts of acts.

AI Analysis – Experimental

House Bills 5396–5398 amend Michigan’s sales, use, and property tax laws to repeal the data center equipment tax exemption, adjust revenue allocations to bolster the School Aid Fund while maintaining distributions to local governments and other priorities, and clarify property tax exemption rules for renaissance zone properties, including special provisions for large data centers, contingent on related legislation.

Introduced in the House

Dec. 17, 2025

Introduced by Rep. Dylan Wegela (D-26) and 11 co-sponsors

Co-sponsored by Reps. James DeSana (R-29), Laurie Pohutsky (D-17), Noah Arbit (D-20), Carrie Rheingans (D-47), Emily Dievendorf (D-77), Sharon MacDonell (D-56), Erin Byrnes (D-15), Jimmie Wilson (D-32), Phil Skaggs (D-80), Matt Longjohn (D-40) and Josh Schriver (R-66)

Referred to the Committee on Economic Competitiveness