State representative introduces ‘sales tax holiday’ plan

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Lynn Afendoulis Courtesy Michigan House Republicans

State Rep. Lynn Afendoulis, R-Grand Rapids, introduced a bill to provide a “sales tax holiday” once the COVID-19 pandemic ends.

She is the chair of the Michigan House Tax Policy Committee, and her plan would waive Michigan’s 6% sales tax on a variety of purchases made at physical locations. A companion bill for a use tax holiday was introduced by Rep. Ben Frederick, R-Owosso.

“This is a bill to get Main Street Michigan back on its feet after this unprecedented, challenging time,” Afendoulis said. “We don’t know how long coronavirus will be a public health threat, but we do know challenges will remain from the disruption it is causing to our economy and way of life.

“When the time is appropriate, a sales tax holiday is one of the tools we can use to incentivize spending and get our economy get back on track. It’s an important sign of support for retailers, their employees and customers — all of whom will need support as this situation evolves.”

The specifics of the sales tax holiday plan have not yet been finalized. Last week, Afendoulis voted in favor of an emergency budget bill that includes $75 million overall — including $25 million in state funding — to combat and deal with the virus.

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