HOUSE BILL No. 5112


     September 30, 1997, Introduced by Reps. Profit and Alley 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 4o.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4o.  (1) THE TAX LEVIED UNDER THIS ACT DOES NOT APPLY

 2    TO THE STORAGE, USE, OR CONSUMPTION OF THE FOLLOWING TANGIBLE

 3    PERSONAL PROPERTY IF THE STORAGE, USE, OR CONSUMPTION TAKES PLACE

 4    WITHIN A TRADE FREE ZONE:

 5         (A) AN AIRCRAFT.

 6         (B) PARTS, ACCESSORIES, MATERIALS, SUPPLIES, SHOP EQUIPMENT,

 7    TOOLS, OR FUEL OR OTHER PETROLEUM PRODUCTS FOR SERVICING AND

 8    MAINTAINING AN AIRCRAFT.

 9         (2) AS USED IN THIS SECTION, "TRADE FREE ZONE" MEANS 1 OR

10    MORE OF THE FOLLOWING:




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 1         (A) AN AIRPORT THAT IS LOCATED WITHIN NOT LESS THAN 2

 2    CONTIGUOUS COUNTIES WITH A RUNWAY GREATER THAN 7,000 LINEAL

 3    FEET.

 4         (B) AN AIRPORT THAT IS LOCATED WITHIN A COUNTY WITH A POPU-

 5    LATION OF NOT MORE THAN 50,000 WITH A RUNWAY GREATER THAN 11,000

 6    LINEAL FEET.












































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