Michigan – Exemption for Sales to Prison Inmates Eliminated

SALT Report 1517 – The Michigan State Legislature recently passed legislation that eliminates the sales tax exemption for purchases of tangible personal property by prison inmates effective October 1, 2012.
The bill, HB 4658, amends the General Sales Tax Act which provides a sales tax exemption to inmates in a penal or correctional institution. The items must be purchased items with scrip which is issued and redeemed by the correctional institution.  By eliminating the exemption, the state will increase sales tax revenue by approximately $500,000 annually.
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