HOUSE BILL No. 4970


     June 25, 1997, Introduced by Reps. Palamara, Profit, DeHart, Kelly, Schermesser, Dobronski and Perricone and referred to the Committee on Tax Policy.


        A bill to amend 1937 PA 94, entitled

   "Use tax act,"

   (MCL 205.91 to 205.111) by adding section 4m.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4M.  THE TAX LEVIED UNDER THIS ACT DOES NOT APPLY TO

 2    TANGIBLE PERSONAL PROPERTY PURCHASED BY A PERSON ENGAGED IN THE

 3    BUSINESS OF CONSTRUCTING, ALTERING, REPAIRING, OR IMPROVING REAL

 4    ESTATE FOR OTHERS IF THE PROPERTY IS MATERIAL, EQUIPMENT, OR SUP-

 5    PLIES USED OR CONSUMED IN CONSTRUCTING, OR INCORPORATED INTO THE

 6    CONSTRUCTION OF, A HEAVY MAINTENANCE FACILITY FOR AIRCRAFT THAT

 7    IS OR WILL BE OWNED BY THIS STATE OR A LOCAL GOVERNMENTAL UNIT

 8    AND LEASED BY AN AIRLINE COMPANY OR AN AIRCRAFT ENGINE REPAIR

 9    COMPANY.  THIS EXEMPTION ALSO INCLUDES ALL MACHINERY, EQUIPMENT,

10    AND TOOLS NECESSARY FOR CONSTRUCTING AND EQUIPPING THAT FACILITY

11    EXCEPT FOR EQUIPMENT OWNED OR LEASED BY A CONTRACTOR.


   03934'97                                                 CSC