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Michigan House passes trade‑in sales tax changes, broader sales‑tax bill and 529 deduction bill

October 24, 2025 | 2025 House Legislature MI, Michigan


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Michigan House passes trade‑in sales tax changes, broader sales‑tax bill and 529 deduction bill
The Michigan House of Representatives passed three bills on third reading that change how sales and use taxes apply to certain transactions and permit a state income tax deduction for certain education savings contributions. House Bill 4375, House Bill 4376 and House Bill 4747 won final passage with roll call tallies of 71‑33, 71‑33 and 72‑32, respectively, and the House ordered immediate effect for each measure.

The measures matter because they alter the state tax treatment of consumer transactions and education savings. Representative Rachael Frisbie introduced House Bill 4375 as a change to the Use Tax Act to remove the sales/use tax on trade‑ins of portable electronic devices. “This legislation … removes the sales tax and use tax for trade in portable electronic devices,” Frisbie said on the floor and said the change would provide “$42 in … relief for someone trading in a cell phone.” The bill advanced through amendment votes at second reading and was placed on immediate passage at third reading. The clerk announced the final tally as “71 aye votes and 33 nay votes.”

House Bill 4376, introduced by Representative Snyder, would amend the General Sales Tax Act. At second reading the House adopted one amendment and rejected others, then advanced the bill to third reading. On final passage the clerk announced 71 aye votes and 33 nay votes and the majority floor leader moved for immediate effect, which the House ordered.

House Bill 4747, introduced by Representative Tisdale, would amend the Income Tax Act of 1967 to allow Michigan taxpayers who make contributions to qualified education and special‑needs savings accounts to take a Michigan tax deduction regardless of where an IRS‑certified 529 program is located. “If our residents want to be responsible and start saving now, let them take the tax deduction regardless of where the program that best meets their needs is located,” Tisdale told the House. The clerk announced 72 aye votes and 32 nay votes on final passage; the House ordered immediate effect.

Floor amendments and debate: Several floor amendments were offered on the bills during second‑reading consideration. Representative Weiss offered amendments to at least two bills; in the record for House Bill 4375 and House Bill 4376 some amendments were adopted and others were rejected. On House Bill 4375, Frisbie’s proponents argued the measure aligns Michigan with other states that exempt trade‑ins of portable electronics; opponents’ amendment attempts failed on the floor.

Votes at a glance

- House Bill 4375 (Use Tax Act amendment, introduced by Representative Frisbie): final passage recorded 71 ayes, 33 nays; immediate effect ordered.
- House Bill 4376 (General Sales Tax Act amendment, introduced by Representative Snyder): final passage recorded 71 ayes, 33 nays; immediate effect ordered.
- House Bill 4747 (Income Tax Act of 1967 amendment re: 529 deductions, introduced by Representative Tisdale): final passage recorded 72 ayes, 32 nays; immediate effect ordered.

The House concluded the day’s business and announced it would stand adjourned until Wednesday, 10/22/2025, at 1:30 p.m.

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Scribe from Workplace AI
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