HOUSE BILL No. 5108


     September 30, 1997, Introduced by Reps. Profit, Palamara, DeHart and Dobronski and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   (MCL 205.51 to 205.78) by adding section 4p.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4P.  A PERSON SUBJECT TO THE TAX LEVIED UNDER THIS ACT

 2    MAY EXCLUDE FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF

 3    THE TAX THE SALE OF TANGIBLE PERSONAL PROPERTY PURCHASED BY A

 4    PERSON ENGAGED IN THE BUSINESS OF CONSTRUCTING, ALTERING, REPAIR-

 5    ING, OR IMPROVING THE REAL ESTATE OF OTHERS IF THE PROPERTY IS

 6    MATERIAL, EQUIPMENT, OR SUPPLIES USED OR CONSUMED IN CONSTRUCT-

 7    ING, OR INCORPORATED INTO THE CONSTRUCTION OF, AN AIRLINE PASSEN-

 8    GER TERMINAL, AIR CARGO OR MAIL FACILITY, OR AIRLINE MAINTENANCE

 9    FACILITY THAT IS OR WILL BE OWNED BY A COUNTY WITH A POPULATION

10    GREATER THAN 2,000,000 OR A LOCAL GOVERNMENTAL UNIT WITHIN A

11    COUNTY WITH A POPULATION GREATER THAN 2,000,000.  THIS EXEMPTION


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 1    ALSO INCLUDES ALL MACHINERY, EQUIPMENT, AND TOOLS NECESSARY FOR

 2    CONSTRUCTING AND EQUIPPING THAT FACILITY EXCEPT FOR EQUIPMENT

 3    OWNED OR LEASED BY A CONTRACTOR.


















































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