HOUSE BILL No. 5107


     September 30, 1997, Introduced by Reps. Palamara, Profit, DeHart and Dobronski 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    THE USE OR CONSUMPTION OF TANGIBLE PERSONAL PROPERTY PURCHASED BY

 3    A PERSON ENGAGED IN THE BUSINESS OF CONSTRUCTING, ALTERING,

 4    REPAIRING, OR IMPROVING THE REAL ESTATE OF OTHERS IF THE PROPERTY

 5    IS MATERIAL, EQUIPMENT, OR SUPPLIES USED OR CONSUMED IN CON-

 6    STRUCTING, OR INCORPORATED INTO THE CONSTRUCTION OF, AN AIRLINE

 7    PASSENGER TERMINAL, AIR CARGO OR MAIL FACILITY, OR AIRLINE MAIN-

 8    TENANCE FACILITY THAT IS OR WILL BE OWNED BY A COUNTY WITH A POP-

 9    ULATION GREATER THAN 2,000,000 OR A LOCAL GOVERNMENTAL UNIT

10    WITHIN A COUNTY WITH A POPULATION GREATER THAN 2,000,000.  THIS

11    EXEMPTION ALSO INCLUDES ALL MACHINERY, EQUIPMENT, AND TOOLS


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 1    NECESSARY FOR CONSTRUCTING AND EQUIPPING THAT FACILITY EXCEPT FOR

 2    EQUIPMENT OWNED OR LEASED BY A CONTRACTOR.




















































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