Sales tax: collections; collection of sales tax on utility bills; prohibit. Amends sec. 4n of 1933 PA 167 (MCL 205.54n).

SB 986 amends Michigan's General Sales Tax Act to clarify how the 2% additional sales tax applies to residential utility bills for electricity, gas, and home heating fuels. The bill requires large utility providers with 100,000 or more customers to prorate usage calculations based on days after April 30, 1994, while smaller providers have the option to either prorate or apply the tax starting with the first bill covering usage after that date. This legislative change directly affects utility companies and their residential customers by standardizing the timing and calculation of sales tax on essential energy services. The amendment aims to ensure consistent application of the tax across different provider sizes while maintaining the exemption for residential use of these utilities.