Michigan bill proposes 32% tax on any internet-enabled device purchased for minors

Two Metro Detroit state representatives are among a group of Republicans sponsoring a bill that calls for 32% in additional state taxes on any wireless communications device purchased in Michigan for the intended use of someone age 17 or younger. 

Any money raised through the proposed tax would be directed to mental health and safety services for youths in the state. 

State Rep. Mark Tisdel, R-District 55 of Rochester Hills, is leading the efforts on House Bill 5496, which is also sponsored by fellow Republican Reps. Thomas Kuhn (District 57 of Troy), Tim Kelly (District 93 of Saginaw Township) and Nancy DeBoer (District 86 of Holland). 

Tisdel was also the lead sponsor on House Bill 4141, an effort to implement a statewide ban on cellphone use during classroom time in Michigan's K-12 schools. A related bill has passed in the Senate. The legislation is pending signature from Gov. Gretchen Whitmer. 

House Bill 5496, also known as the Wireless Communications Device Excise Tax Act, calls for a 32% excise tax on the retail purchase price of any wireless communications device "intended for the primary use of an individual who is under 18 years old." 

As an example, the purchase of a wireless device costing about $360 retail would then result in about $115 in excise taxes. 

Any wireless electronic device that is capable of navigation, text messaging, sending and receiving photos and videos, or accessing email would fall under the rules that are spelled out in the bill. A basic telephone that is primarily used for voice calling and does not allow for access to the internet would be exempt.

All excise taxes collected would be paid to the State of Michigan treasury and directed to the Michigan Children's Mental Health and Safety Fund. 

House Bill 5496 has been referred to the Committee on Finance.