Tax Relief

Chamber assertion on Governor Whitmer’s veto of gross sales tax relief for the protection of PPE staff

DETROIT (June 25, 2021) – Brad Williams, Vice President of the Detroit Regional Chamber for Government Relations, made the following statement regarding Governor Whitmer’s veto of House Laws 4224 and 4225, by companies purchasing personal protective equipment during the pandemic.

“The Chamber listened to Michigan companies and worked with a bipartisan group of lawmakers to develop a number of laws that would remove an onerous worker safety tax on personal protective equipment.

The tightly tailored House Bills 4224 and 4225 met the needs of companies doing whatever Governor Whitmer asked them to do to keep employees and customers safe. In a political era where there is very little cross-party cooperation, there has been overwhelming bipartisan support for this bill, which was reflected in a unanimous passage in the Michigan Senate. Such bipartisanism deserves to be celebrated rather than vetoed.

Despite this setback, the Chamber will continue to work with policy makers on both sides who are interested in addressing the needs of businesses and their employees after 16 months of challenge in the face of COVID-19. “

House Bill 4224 and 4225 would allow a company to avail of tax exemptions for personal protective equipment (PPE) in response to the COVID-19. The bills would only exempt PPE and other tangible personal items from taxes if used specifically related to COVID-19. If the governor legally signs it, companies with written COVID-19 safety plans required by the Michigan Occupational Safety and Health Administration would not have to pay the 6% state sales and use tax on purchases of PPE and disinfection supplies.

“During this pandemic, small businesses in our state paid taxes on the equipment needed to keep them operational at a high cost to their bottom line,” said Matt Patton, director of government relations for the chamber. “Despite a bitterly uncomfortable political climate, these bills have brought Democrats and Republicans together to make life-saving PPE more affordable by preventing the government from capitalizing on the necessity.”

Earlier, Matt Patton, director of government relations for the chamber, testified before the Michigan Senate Finance Committee on Wednesday, May 12, to campaign for House Laws 4224 and 4225, which would allow a company to offer tax exemptions for personal protective equipment ( PSA) in response to the COVID-19.

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