H.B. 4222 (H-1): COMMITTEE SUMMARY                         SALES TAX: BAKERY PRODUCTS

House Bill 4222 (Substitute H-1)

Sponsor: Representative Kirk A. Profit

House Committee: Tax Policy

Senate Committee: Finance

Date Completed: 5-2-95

SUMMARY OF HOUSE BILL 4222 (Substitute H-1) as passed by the House:

The bill would amend the General Sales Tax Act to exempt from taxation bakery products, if they are sold for immediate consumption from a vending machine or by a vendor from a mobile facility.

Generally, under the Act, food for human consumption is exempt from the sales tax. Prepared food intended for immediate consumption is taxable, although there are some exceptions. Food or drink intended for immediate consumption sold from a vending machine or by a vendor from a mobile facility is taxable; however, milk, juice, fresh fruit, candy, nuts, chewing gum, cookies, crackers, and chips are exempt if sold in this manner. Further, bakery products intended for off-premises consumption, such as doughnuts, pastry, bread, and cakes, are exempt.

MCL 205.54g                                                                                     Legislative Analyst: G. Towne

FISCAL IMPACT

It is estimated that this bill would reduce sales tax collections by less than $500,000 a year.

Fiscal Analyst: J. Wortley

S9596\S4222SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Page 1 of 1                                                                                                                    hb4222/9596