HB4026 extends Michigan’s existing use tax exemption for firearm safety devices. The bill amends the Use Tax Act to continue exempting the storage, use, or consumption of qualifying firearm safety devices from the state’s use tax through December 31, 2024, and it requires firearm sellers to provide purchasers with written notice and to post a notice at points of sale informing customers of the exemption.
The bill defines “firearm safety device” to include devices installed on a firearm to prevent operation until deactivated, as well as gun safes, gun cases, lockboxes, and similar storage designed to prevent access except by key, combination, biometric data, or comparable means. It excludes display-oriented glass-faced cabinets and similar storage primarily intended for showing firearms. The bill also includes an enacting section stating legislative intent to appropriate state general fund money to fully offset any loss of revenue to the State School Aid Fund caused by the exemption.
Impact
The bill continues a targeted tax exemption under Michigan’s Use Tax Act for firearm safety devices, affecting sales and use tax treatment for retailers, purchasers, and manufacturers or sellers of gun safes, locks, lockboxes, and similar products. It also imposes a notice requirement on firearm sellers. Because the exemption reduces revenue that would otherwise flow to the State School Aid Fund, the bill states an intent for annual general fund appropriations to replace any lost school aid revenue.
Sentiment
The available voting history suggests the bill had generally favorable support, passing committee 15-0 and receiving a strong House third-reading vote of 95-12 with immediate effect. That pattern indicates broad agreement on extending the exemption, likely reflecting support for firearm safety measures and the tax relief associated with them. No committee transcript was provided, so the record does not show detailed debate or amendments.
Contention
The main point of contention is likely the policy choice to continue a tax exemption tied to firearms, which may draw opposition from lawmakers concerned about tax expenditures, revenue loss, or the broader politics of gun policy. The bill’s revenue offset provision appears designed to address concerns about the State School Aid Fund, but the need for such an offset underscores the fiscal issue at stake. The recorded 12 no votes on the House floor suggest some resistance, though the bill still passed comfortably.