Restoring sales and use tax exemptions for dental devices

Senator John Proos

Senator John Proos

LANSING, Mich. — Michigan sales and use taxes on dental bridges, crowns, dentures and other prosthetics have been eliminated by legislation supported by Sen. John Proos and signed into law.

“The ever-increasing costs of health and dental care are common frustrations of Southwest Michigan families and job providers,” said Proos, R-St. Joseph. “Dental prosthetics that greatly improve the health of hundreds of people every year were exempt from the state’s sales and use taxes for more than three decades, until this summer, when the Michigan Department of Treasury arbitrarily started applying the tax to them.

“I strongly supported measures to help control costs for residents who need dental prosthetics by stopping the taxes and ensuring that the prosthetics will not be taxed in the future.”

Since a Department of Treasury opinion letter in 1985, Michigan had exempted dental prosthetics from the state’s sales and use taxes. Many Michigan tax laws were rewritten in 2004 to reduce the burden of compliance and improve tax administration.

Citing language in the 2004 rewrite, the department recently decided that dental prosthetics are not exempt and made the decision to start charging sales tax on the products beginning July 1.

Senate Bills 566 and 567 and House Bills 5164 and 5173, now Public Acts 218-221 of 2017, restore the sales and use tax exemptions for dental prosthetics. The savings is estimated to be more than $8 million per year.

“These products were never supposed to be taxed, and I applaud the governor for signing the bills and helping curb unnecessary cost hikes for dental care,” Proos said.