HOUSE BILL No. 4565


     April 8, 1997, Introduced by Rep. Profit and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   (MCL 211.1 to 211.157) by adding section 9f.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 9F.  (1) RENTAL INVENTORY IS EXEMPT FROM THE COLLECTION

 2    OF TAXES UNDER THIS ACT IF THE OWNER OF THAT RENTAL INVENTORY

 3    DERIVED 50% OR MORE OF THE OWNER'S BUSINESS INCOME IN THE IMMEDI-

 4    ATELY PRECEDING TAX YEAR FROM THE RENTAL OF THAT RENTAL

 5    INVENTORY.

 6         (2) AS USED IN THIS SECTION:

 7         (A) "BUSINESS INCOME" MEANS THAT TERM AS DEFINED IN SECTION

 8    3 OF THE SINGLE BUSINESS TAX ACT, 1975 PA 228, MCL 208.3.

 9         (B) "RENTAL INVENTORY" MEANS TANGIBLE PERSONAL PROPERTY THAT

10    IS SUBJECT TO A RENTAL AGREEMENT OR THAT IS PRINCIPALLY INTENDED

11    FOR RENT RATHER THAN SALE, THE POSSESSION OF WHICH IS TRANSFERRED


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 1    FOR CONSIDERATION FOR AN HOURLY, DAILY, WEEKLY, OR MONTHLY

 2    PERIOD.




















































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