Michigan House Bill HB5640

Michigan 2025-2026 Regular Session

• Introduced: 2/26/26
• Refer: 2/26/26

Caption

State agencies (existing): treasury; monthly report on fiscal impact of tariffs on the economy of this state; require. Amends sec. 18 of 1941 PA 122 (MCL 205.18).

Summary

HB5640 amends Section 18 of the Revenue Act to require the Michigan Department of Treasury to produce an additional monthly report beginning January 1, 2026 on the fiscal and economic effects of tariffs. The report must address tariffs imposed by the United States on other nations, or by foreign governments on the United States, if imposed on or after January 20, 2025, and must include the net fiscal impact on the state’s revenue collections during the prior month. The department must also provide a copy of each report to the attorney general. The bill also preserves the department’s existing annual revenue collections report and its authority to use dynamic revenue forecasting in revenue reports. Dynamic revenue forecasting is defined as estimating not only the direct revenue effects of tax law changes, but also the behavioral and broader economic effects of those changes. HB5640 does not change tax rates or collection procedures; it adds a new reporting obligation focused on tariffs and their economic consequences.

Impact

HB5640 would amend MCL 205.18 to expand the Department of Treasury’s reporting duties by adding a mandatory monthly tariff-impact report and a transmission requirement to the attorney general. It would create a new statutory obligation for the department to analyze and publish the economic and revenue effects of specified tariffs, while leaving existing revenue collection and forecasting provisions intact. The bill primarily affects the Department of Treasury and, indirectly, state fiscal analysis and policymaking by requiring more frequent reporting on trade policy impacts.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available record. Based on the bill text alone, the measure appears administrative and informational in nature, which often draws limited controversy compared with substantive tax changes. The overall tone of the proposal is neutral and technical, focused on reporting and analysis rather than imposing new taxes or penalties.

Contention

The main potential point of contention is the scope and usefulness of the required tariff reporting, including whether the Department of Treasury should be tasked with monthly analysis of federal and foreign trade actions and their economic effects. Another possible issue is the bill’s definition of tariffs, which is tied to actions taken on or after January 20, 2025 and may raise questions about implementation, methodology, and the breadth of events covered. Because no testimony or votes are available, no specific individuals or groups are identified as holding these concerns.