Michigan House Bill HB5496

Michigan 2025-2026 Regular Session

• Introduced: 1/29/26
• Refer: 1/29/26

Caption

Taxation: excise taxes; excise tax on the purchase of wireless communications devices; require for purchases of devices primarily for the use of individuals under 18 years of age. Creates new act.

Summary

House Bill 5496 would create the “Wireless Communications Device Excise Tax Act” and impose a new 32% excise tax on the retail sale in Michigan of a wireless communications device intended for the primary use of an individual under 18 years of age, beginning January 1, 2026. The bill defines wireless communications devices broadly to include devices capable of texting, voice communication, internet access, navigation, email, and similar functions, while excluding basic telephones. The purchaser would be responsible for the tax, and collection would follow the same general process used for the state use tax. The bill directs the Department of Treasury to administer the tax, prescribe forms, and adopt rules as needed. It also creates the Children’s Mental Health and Safety Fund in the state treasury and requires all excise tax revenue, penalties, and costs collected under the act to be credited to that fund. Money in the fund would not lapse to the general fund at the end of the fiscal year, and expenditures would be limited to administration of the act and to activities supporting children’s mental health and safety under the state school aid act.

Impact

If enacted, the bill would add a new excise tax chapter to Michigan law and create a new dedicated state fund for children’s mental health and safety. It would expand the Department of Treasury’s administrative responsibilities, require retailers and purchasers to comply with a new tax collection regime, and establish rulemaking authority and penalties tied to the new tax. The bill would also affect families purchasing smartphones and similar devices for minors, as well as retailers selling those devices in Michigan.

Sentiment

Based on the available context, the bill appears to be framed as a revenue measure tied to child welfare, with its proceeds earmarked for children’s mental health and safety. However, there is no committee transcript or recorded vote history provided, so there is no direct evidence of support, opposition, or amendments from legislative discussion. The overall sentiment can only be characterized as policy-driven and revenue-focused, with the stated purpose of funding child-related services.

Contention

The main potential point of contention is the size and scope of the tax: a 32% excise tax on devices intended for minors is substantial and could be viewed as burdensome for families, retailers, or consumers purchasing phones and similar devices for children. Another likely issue is definitional and enforcement complexity, including how “primary use” by an individual under 18 would be determined and how the tax would be applied to shared or family devices. Supporters would likely emphasize the dedicated funding for children’s mental health and safety, while critics may question whether the tax is an appropriate or equitable way to raise those funds.