HOUSE BILL No. 5213 October 1, 1997, Introduced by Rep. Profit and referred to the Committee on Tax Policy. A bill to amend 1937 PA 94, entitled "Use tax act," by amending sections 2, 4, and 10 (MCL 205.92, 205.94, and 205.100), section 2 as amended by 1995 PA 208, section 4 as amended by 1996 PA 436, and section 10 as amended by 1993 PA 263. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2. As used in this act: 2 (a) "Person" means an individual, firm, partnership, joint 3 venture, association, social club, fraternal organization, munic- 4 ipal or private corporation whether or not organized for profit, 5 company, estate, trust, receiver, trustee, syndicate, the United 6 States, this state, county, or any other group or combination 7 acting as a unit, and the plural as well as the singular number, 03554'97 ** CSC 2 1 unless the intention to give a more limited meaning is disclosed 2 by the context. 3 (b) "Use" means the exercise of a right or power over tangi- 4 ble personal property incident to the ownership of that property 5 including transfer of the property in a transaction where posses- 6 sion is given. 7 (c) "Storage" means a keeping or retention of property in 8 this state for any purpose after the property loses its inter- 9 state character. 10 (d) "Seller" means the person from whom a purchase is made 11 and includes every person selling tangible personal property or 12 services for storage, use, or other consumption in this state. 13 If, in the opinion of the department, it is necessary for the 14 efficient administration of this act to regard a salesperson, 15 representative, peddler, or canvasser as the agent of a dealer, 16 distributor, supervisor, or employer under whom the person oper- 17 ates or from whom he or she obtains tangible personal property or 18 services sold by him or her for storage, use, or other consump- 19 tion in this state, irrespective of whether or not he or she is 20 making the sales on his or her own behalf or on behalf of the 21 dealer, distributor, supervisor, or employer, the department may 22 so consider him or her, and may consider the dealer, distributor, 23 supervisor, or employer as the seller for the purpose of this 24 act. 25 (e) "Purchase" means to acquire for a consideration, whether 26 the acquisition is effected by a transfer of title, of 27 possession, or of both, or a license to use or consume; whether 03554'97 ** 3 1 the transfer is absolute or conditional, and by whatever means 2 the transfer is effected; and whether consideration is a price or 3 rental in money, or by way of exchange or barter. 4 (f) "Price" means the aggregate value in money of anything 5 paid or delivered, or promised to be paid or delivered, by a con- 6 sumer to a seller in the consummation and complete performance of 7 the transaction by which tangible personal property or services 8 are purchased or rented for storage, use, or other consumption in 9 this state, without a deduction for the cost of the property 10 sold, cost of materials used, labor or service cost, interest or 11 discount paid, or any other expense. The price of tangible per- 12 sonal property, for affixation to real estate, withdrawn by a 13 construction contractor from inventory available for sale to 14 others or made available by publication or price list as a fin- 15 ished product for sale to others is the finished goods inventory 16 value of the property. If a construction contractor manufac- 17 tures, fabricates, or assembles tangible personal property before 18 affixing it to real estate, the price of the property is equal to 19 the sum of the materials cost of the property and the cost of 20 labor to manufacture, fabricate, or assemble the property but 21 does not include the cost of labor to cut, bend, assemble, or 22 attach property at the site of affixation to real estate. For 23 the purposes of the preceding sentence, for property withdrawn by 24 a construction contractor from inventory available for sale to 25 others or made available by publication or price list as a fin- 26 ished product for sale to others, the materials cost of the 27 property means the finished goods inventory value of the 03554'97 ** 4 1 property. For purposes of this subdivision, "manufacture" means 2 to convert or condition tangible personal property by changing 3 the form, composition, quality, combination, or character of the 4 property and "fabricate" means to modify or prepare tangible per- 5 sonal property for affixation or assembly. The price of a motor 6 vehicle, trailer coach, or titled watercraft is the full retail 7 price of the motor vehicle, trailer coach, or titled watercraft 8 being purchased. The tax collected by the seller from the con- 9 sumer or lessee under this act is not considered part of the 10 price, but is a tax collection for the benefit of the state, and 11 a person other than the state shall not derive a benefit from the 12 collection or payment of this tax. A price does not include an 13 assessment imposed under the convention and tourism marketing 14 act,Act No. 383 of the Public Acts of 1980, being sections15141.881 to 141.889 of the Michigan Compiled Laws, Act No. 263 of16the Public Acts of 1974, being sections 141.861 to 141.867 of the17Michigan Compiled Laws1980 PA 383, MCL 141.881 TO 141.889, 1974 18 PA 263, MCL 141.861 TO 141.867, the state convention facility 19 development act,Act No. 106 of the Public Acts of 1985, being20sections 207.621 to 207.640 of the Michigan Compiled Laws1985 21 PA 106, MCL 207.621 TO 207.640, the regional tourism marketing 22 act,Act No. 244 of the Public Acts of 1989, being23sections 141.891 to 141.900 of the Michigan Compiled Laws, Act24No. 180 of the Public Acts of 1991, being sections 207.751 to25207.759 of the Michigan Compiled Laws1989 PA 244, MCL 141.891 26 TO 141.900, 1991 PA 180, MCL 207.751 TO 207.759, or the community 27 convention or tourism marketing act,Act No. 395 of the Public03554'97 ** 5 1Acts of 1980, being sections 141.871 to 141.880 of the Michigan2Compiled Laws1980 PA 395, MCL 141.871 TO 141.880, that was 3 added to charges for rooms or lodging otherwise subject, pursuant 4 to section 3a, to tax under this act. Price does not include 5 specific charges for technical support or for adapting or modify- 6 ing prewritten, standard, or canned computer software programs to 7 a purchaser's needs or equipment if the charges are separately 8 stated and identified. The tax imposed under this act shall not 9 be computed or collected on rental receipts if the tangible per- 10 sonal property rented or leased has previously been subjected to 11 a Michigan sales or use tax when purchased by the lessor. 12 (g) "Consumer" means the person who has purchased tangible 13 personal property or services for storage, use, or other consump- 14 tion in this state and includes a person acquiring tangible per- 15 sonal property if engaged in the business of constructing, alter- 16 ing, repairing, or improving the real estate of others. 17 (h) "Business" means all activities engaged in by a person 18 or caused to be engaged in by a person with the object of gain, 19 benefit, or advantage, either direct or indirect. 20 (i) "Department" means the revenue division of the depart- 21 ment of treasury. 22 (j) "Tax" includes all taxes, interest, or penalties levied 23 under this act. 24 (k) "Tangible personal property" includes computer software 25 offered for general use by the public or software modified or 26 adapted to the user's needs or equipment by the seller, only if 27 the software is available from a seller of software on an as is 03554'97 ** 6 1 basis or as an end product without modification or adaptation. 2 Tangible personal property does not include computer software 3 originally designed for the exclusive use and special needs of 4 the purchaser. As used in this subdivision, "computer software" 5 means a set of statements or instructions that when incorporated 6 in a machine usable medium is capable of causing a machine or 7 device having information processing capabilities to indicate, 8 perform, or achieve a particular function, task, or result. 9 (l) "Tangible personal property" does not include a commer- 10 cial advertising element if the commercial advertising element is 11 used to create or develop a print, radio, television, or other 12 advertisement, the commercial advertising element is discarded or 13 returned to the provider after the advertising message is com- 14 pleted, and the commercial advertising element is custom devel- 15 oped by the provider for the purchaser. As used in this subdivi- 16 sion, "commercial advertising element" means a negative or posi- 17 tive photographic image, an audiotape or videotape master, a 18 layout, a manuscript, writing of copy, a design, artwork, an 19 illustration, retouching, and mechanical or keyline 20 instructions. "Tangible personal property" includes black and 21 white or full color process separation elements, an audiotape 22 reproduction, or a videotape reproduction. 23 (M) "TEXTILES" MEANS GOODS THAT ARE MADE OF OR INCORPORATE 24 WOVEN OR NONWOVEN FABRIC, INCLUDING, BUT NOT LIMITED TO, CLOTH- 25 ING, SHOES, HATS, GLOVES, HANDKERCHIEFS, CURTAINS, TOWELS, 26 SHEETS, PILLOWS, PILLOWCASES, TABLECLOTHS, NAPKINS, APRONS, 27 LINENS, FLOOR MOPS, FLOOR MATS, AND THREAD. TEXTILES ALSO 03554'97 ** 7 1 INCLUDE MATERIALS USED TO REPAIR OR CONSTRUCT TEXTILES, OR OTHER 2 GOODS USED IN THE RENTAL, SALE, OR CLEANING OF TEXTILES. 3 Sec. 4. The tax levied does not apply to the following: 4 (a) Property sold in this state on which transaction a tax 5 is paid under the general sales tax act,Act No. 167 of the6Public Acts of 1933, being sections 205.51 to 205.78 of the7Michigan Compiled Laws1933 PA 167, MCL 205.51 TO 205.78, if the 8 tax was due and paid on the retail sale to a consumer. 9 (b) Property, the storage, use, or other consumption of 10 which this state is prohibited from taxing under the constitution 11 or laws of the United States, or under the constitution of this 12 state. 13 (c) Property purchased for resale, demonstration purposes, 14 or lending or leasing to a public or parochial school offering a 15 course in automobile driving except that a vehicle purchased by 16 the school shall be certified for driving education and shall not 17 be reassigned for personal use by the school's administrative 18 personnel. For a dealer selling a new car or truck, exemption 19 for demonstration purposes shall be determined by the number of 20 new cars and trucks sold during the current calendar year or the 21 immediately preceding year without regard to specific make or 22 style according to the following schedule of 0 to 25, 2 units; 26 23 to 100, 7 units; 101 to 500, 20 units; 501 or more, 25 units; but 24 not to exceed 25 cars and trucks in 1 calendar year for demon- 25 stration purposes. Property purchased for resale includes promo- 26 tional merchandise transferred pursuant to a redemption offer to 27 a person located outside this state or any packaging material, 03554'97 ** 8 1 other than promotional merchandise, acquired for use in 2 fulfilling a redemption offer or rebate to a person located out- 3 side this state. 4 (d) Property that is brought into this state by a nonresi- 5 dent person for storage, use, or consumption while temporarily 6 within this state, except if the property is used in this state 7 in a nontransitory business activity for a period exceeding 15 8 days. 9 (e) Property the sale or use of which was already subjected 10 to a sales tax or use tax equal to, or in excess of, that imposed 11 by this act under the law of any other state or a local govern- 12 mental unit within a state if the tax was due and paid on the 13 retail sale to the consumer and the state or local governmental 14 unit within a state in which the tax was imposed accords like or 15 complete exemption on property the sale or use of which was sub- 16 jected to the sales or use tax of this state. If the sale or use 17 of property was already subjected to a tax under the law of any 18 other state or local governmental unit within a state in an 19 amount less than the tax imposed by this act, this act shall 20 apply, but at a rate measured by the difference between the rate 21 provided in this act and the rate by which the previous tax was 22 computed. 23 (f) Property sold to a person engaged in a business enter- 24 prise and using and consuming the property in the tilling, plant- 25 ing, caring for, or harvesting of the things of the soil or in 26 the breeding, raising, or caring for livestock, poultry, or 27 horticultural products, including transfers of livestock, 03554'97 ** 9 1 poultry, or horticultural products for further growth. At the 2 time of the transfer of that tangible personal property, the 3 transferee shall sign a statement, in a form approved by the 4 department, stating that the property is to be used or consumed 5 in connection with the production of horticultural or agricul- 6 tural products as a business enterprise. The statement shall be 7 accepted by the courts as prima facie evidence of the exemption. 8 This exemption includes agricultural land tile, which means fired 9 clay or perforated plastic tubing used as part of a subsurface 10 drainage system for land used in the production of agricultural 11 products as a business enterprise and includes a portable grain 12 bin, which means a structure that is used or is to be used to 13 shelter grain and that is designed to be disassembled without 14 significant damage to its component parts. This exemption does 15 not include transfers of food, fuel, clothing, or similar tangi- 16 ble personal property for personal living or human consumption. 17 This exemption does not include tangible personal property per- 18 manently affixed and becoming a structural part of real estate. 19 (g) Property sold to the following: 20 (i) An industrial processor for use or consumption in indus- 21 trial processing. Property used or consumed in industrial pro- 22 cessing does not include tangible personal property permanently 23 affixed and becoming a structural part of real estate; office 24 furniture, office supplies, and administrative office equipment; 25 or vehicles licensed and titled for use on public highways other 26 than a specially designed vehicle, together with parts, used to 27 mix and agitate materials added at a plant or jobsite in the 03554'97 ** 10 1 concrete manufacturing process. Industrial processing does not 2 include receipt and storage of raw materials purchased or 3 extracted by the user or consumer, or the preparation of food and 4 beverages by a retailer for retail sale. As used in this subdi- 5 vision, "industrial processor" means a person who transforms, 6 alters, or modifies tangible personal property by changing the 7 form, composition, or character of the property for ultimate sale 8 at retail or sale to another industrial processor to be further 9 processed for ultimate sale at retail. EFFECTIVE JANUARY 1, 10 1993, INDUSTRIAL PROCESSOR INCLUDES, BUT IS NOT LIMITED TO, A 11 PERSON WHO LAUNDERS OR CLEANS TEXTILES FOR REUSE, SALE, OR RENTAL 12 UNDER A SERVICE OR RENTAL AGREEMENT WITH A TERM OF AT LEAST 5 13 DAYS. Sales to a person performing a service who does not act as 14 an industrial processor while performing the service may not be 15 excluded under this subdivision, except as provided in 16subparagraphSUBPARAGRAPHS (ii) AND (iii). 17 (ii) A person, whether or not the person is an industrial 18 processor, when the property is a computer used in operating 19 industrial processing equipment; equipment used in a computer 20 assisted manufacturing system; equipment used in a computer 21 assisted design or engineering system integral to an industrial 22 process; or a subunit or electronic assembly comprising a compo- 23 nent in a computer integrated industrial processing system. 24 (iii) A RESTAURANT OR OTHER RETAIL SALES BUSINESS, WHETHER 25 OR NOT THE RESTAURANT OR BUSINESS IS AN INDUSTRIAL PROCESSOR, IF 26 THE TANGIBLE PERSONAL PROPERTY IS A TEXTILE THAT HAS BEEN 03554'97 ** 11 1 LAUNDERED OR CLEANED FOR REUSE, SALE, OR RENTAL UNDER A SERVICE 2 OR RENTAL AGREEMENT WITH A TERM OF AT LEAST 5 DAYS. 3 (h) Property or services sold to the United States, an unin- 4 corporated agency or instrumentality of the United States, an 5 incorporated agency or instrumentality of the United States 6 wholly owned by the United States or by a corporation wholly 7 owned by the United States, the American red cross and its chap- 8 ters or branches, this state, a department or institution of this 9 state, or a political subdivision of this state. 10 (i) Property or services sold to a school, hospital, or home 11 for the care and maintenance of children or aged persons, oper- 12 ated by an entity of government, a regularly organized church, 13 religious, or fraternal organization, a veterans' organization, 14 or a corporation incorporated under the laws of this state, if 15 not operated for profit, and if the income or benefit from the 16 operation does not inure, in whole or in part, to an individual 17 or private shareholder, directly or indirectly, and if the activ- 18 ities of the entity or agency are carried on exclusively for the 19 benefit of the public at large and are not limited to the advan- 20 tage, interests, and benefits of its members or a restricted 21 group. The tax levied does not apply to property or services 22 sold to a parent cooperative preschool. As used in this subdivi- 23 sion, "parent cooperative preschool" means a nonprofit, nondis- 24 criminatory educational institution, maintained as a community 25 service and administered by parents of children currently 26 enrolled in the preschool that provides an educational and 27 developmental program for children younger than compulsory school 03554'97 ** 12 1 age, that provides an educational program for parents, including 2 active participation with children in preschool activities, that 3 is directed by qualified preschool personnel, and that is 4 licensed by the department of consumer and industry services pur- 5 suant toAct No. 116 of the Public Acts of 1973, being sections6722.111 to 722.128 of the Michigan Compiled Laws1973 PA 116, 7 MCL 722.111 TO 722.128. 8 (j) Property or services sold to a regularly organized 9 church or house of religious worship except the following: 10 (i) Sales in which the property is used in activities that 11 are mainly commercial enterprises. 12 (ii) Sales of vehicles licensed for use on the public high- 13 ways other than a passenger van or bus with a manufacturer's 14 rated seating capacity of 10 or more that is used primarily for 15 the transportation of persons for religious purposes. 16 (k) A vessel designed for commercial use of registered ton- 17 nage of 500 tons or more, if produced upon special order of the 18 purchaser, and bunker and galley fuel, provisions, supplies, 19 maintenance, and repairs for the exclusive use of a vessel of 500 20 tons or more engaged in interstate commerce. 21 (l) Property purchased by a person engaged in the business 22 of constructing, altering, repairing, or improving real estate 23 for others to the extent the property is affixed to and made a 24 structural part of the real estate of a nonprofit hospital or a 25 nonprofit housing entity qualified as exempt pursuant to section 26 15a of the state housing development authority act of 1966,Act27No. 346 of the Public Acts of 1966, being section 125.1415a of03554'97 ** 13 1the Michigan Compiled Laws1966 PA 346, MCL 125.1415A. A 2 nonprofit hospital or nonprofit housing includes only the prop- 3 erty of a nonprofit hospital or the homes or dwelling places con- 4 structed by a nonprofit housing entity, the income or property of 5 which does not directly or indirectly inure to the benefit of an 6 individual, private stockholder, or other private person. 7 (m) Property purchased for use in this state where actual 8 personal possession is obtained outside this state, the purchase 9 price or actual value of which does not exceed $10.00 during 1 10 calendar month. 11 (n) A newspaper or periodical classified under federal 12 postal laws and regulations effective September 1, 1985 as second 13 class mail matter or as a controlled circulation publication or 14 qualified to accept legal notices for publication in this state, 15 as defined by law, or any other newspaper or periodical of gen- 16 eral circulation, established at least 2 years, and published at 17 least once a week, and a copyrighted motion picture film. 18 Tangible personal property used or consumed, and not becoming a 19 component part of a copyrighted motion picture film, newspaper or 20 periodical, except that portion or percentage of tangible per- 21 sonal property used or consumed in producing an advertising sup- 22 plement that becomes a component part of a newspaper or periodi- 23 cal is subject to tax. For purposes of this subdivision, tangi- 24 ble personal property that becomes a component part of a newspa- 25 per or periodical and consequently not subject to tax, includes 26 an advertising supplement inserted into and circulated with a 27 newspaper or periodical that is otherwise exempt from tax under 03554'97 ** 14 1 this subdivision, if the advertising supplement is delivered 2 directly to the newspaper or periodical by a person other than 3 the advertiser, or the advertising supplement is printed by the 4 newspaper or periodical. 5 (o) Property purchased by persons licensed to operate a com- 6 mercial radio or television station if the property is used in 7 the origination or integration of the various sources of program 8 material for commercial radio or television transmission. This 9 subdivision does not include a vehicle licensed and titled for 10 use on public highways or property used in the transmitting to or 11 receiving from an artificial satellite. 12 (p) A person who is a resident of this state who purchases 13 an automobile in another state while in the military service of 14 the United States and who pays a sales tax in the state where the 15 automobile is purchased. 16 (q) A vehicle for which a special registration is secured in 17 accordance with section 226(12) of the Michigan vehicle code, 18Act No. 300 of the Public Acts of 1949, being section 257.226 of19the Michigan Compiled Laws1949 PA 300, MCL 257.226. 20 (r) A hearing aid, contact lenses if prescribed for a spe- 21 cific diseasewhichTHAT precludes the use of eyeglasses, or 22 any other apparatus, device, or equipment used to replace or sub- 23 stitute for any part of the human body, or used to assist the 24 disabled person to lead a reasonably normal life when the tangi- 25 ble personal property is purchased on a written prescription or 26 order issued by a health professional as defined by section 4 of 27 formerAct No. 264 of the Public Acts of 19741974 PA 264, or 03554'97 ** 15 1 section 21005 of the public health code,Act No. 368 of the2Public Acts of 1978, being section 333.21005 of the Michigan3Compiled Laws1978 PA 368, MCL 333.21005, or eyeglasses pre- 4 scribed or dispensed to correct the person's vision by an oph- 5 thalmologist, optometrist, or optician. 6 (s) Water when delivered through water mains or in bulk 7 tanks in quantities of not less than 500 gallons. 8 (t) The purchase of machinery and equipment for use or con- 9 sumption in the rendition of any combination of services, the use 10 or consumption of which is taxable under section 3a(a) or (c) 11 except that this exemption is limited to the tangible personal 12 property located on the premises of the subscriber and to central 13 office equipment or wireless equipment, directly used or consumed 14 in transmitting, receiving, or switching or the monitoring of 15 switching of a 2-way interactive communication. As used in this 16 subdivision, central office equipment or wireless equipment does 17 not include distribution equipment including cable or wire 18 facilities. 19 (u) A vehicle not for resale used by a nonprofit corporation 20 organized exclusively to provide a community with ambulance or 21 fire department services. 22 (v) Tangible personal property purchased and installed as a 23 component part of a water pollution control facility for which a 24 tax exemption certificate is issued pursuant to part 37 (water 25 pollution control facilities; tax exemption) of the natural 26 resources and environmental protection act,Act No. 451 of the27Public Acts of 1994, being sections 324.3701 to 324.3708 of the03554'97 ** 16 1Michigan Compiled Laws1994 PA 451, MCL 324.3701 TO 324.3708, or 2 an air pollution control facility for which a tax exemption cer- 3 tificate is issued pursuant to part 59 (air pollution control 4 facility; tax exemption) ofAct No. 451 of the Public Acts of51994, being sections 324.5901 to 324.5908 of the Michigan6Compiled LawsTHE NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION 7 ACT, 1994 PA 451, MCL 324.5901 TO 324.5908. 8 (w) Tangible real or personal property donated by a manufac- 9 turer, wholesaler, or retailer to an organization or entity 10 exempt pursuant to subdivision (i) or (j) or section 4a(a) or (b) 11 ofAct No. 167 of the Public Acts of 1933, being section 205.54a12of the Michigan Compiled LawsTHE GENERAL SALES TAX ACT, 1933 PA 13 167, MCL 205.54A. 14 (x) The storage, use, or consumption by a domestic air car- 15 rier of an aircraft purchased after December 31, 1992 for use 16 solely in the transport of air cargo that has a maximum certifi- 17 cated takeoff weight of at least 12,500 pounds. For purposes of 18 this subdivision, the term "domestic air carrier" is limited to 19 entities engaged in the commercial transport for hire of cargo or 20 entities engaged in the commercial transport of passengers as a 21 business activity. 22 (y) The storage, use, or consumption by a domestic air car- 23 rier of an aircraft purchased after June 30, 1994 that is used 24 solely in the regularly scheduled transport of passengers. For 25 purposes of this subdivision, the term "domestic air carrier" is 26 limited to entities engaged in the commercial transport for hire 03554'97 ** 17 1 of cargo or entities engaged in the commercial transport of 2 passengers as a business activity. 3 (z) The storage, use, or consumption by a domestic air car- 4 rier of an aircraft, other than an aircraft described under 5 subdivision (y), purchased after December 31, 1994, that has a 6 maximum certificated takeoff weight of at least 12,500 pounds and 7 that is designed to have a maximum passenger seating configura- 8 tion of more than 30 seats and used solely in the transport of 9 passengers. For purposes of this subdivision, the term "domestic 10 air carrier" is limited to entities engaged in the commercial 11 transport for hire of cargo or entities engaged in the commercial 12 transport of passengers as a business activity. 13 (aa) Property or services sold to a health, welfare, educa- 14 tional, cultural arts, charitable, or benevolent organization not 15 operated for profit that has been issued before June 13, 1994 an 16 exemption ruling letter to purchase items exempt from tax signed 17 by the administrator of the sales, use, and withholding taxes 18 division of the department. The department shall reissue an 19 exemption letter to each of those organizations after June 13, 20 1994 that shall remain in effect unless the organization fails to 21 meet the requirements that originally entitled it to this exemp- 22 tion; or to an organization not operated for profit and exempt 23 from federal income tax under section 501(c)(3) or 501(c)(4) of 24 the internal revenue code of 1986, 26 U.S.C. 501. The exemption 25 does not apply to sales of tangible personal property and sales 26 of vehicles licensed for use on public highways, that are not 27 used primarily to carry out the purposes of the organization as 03554'97 ** 18 1 stated in the bylaws or articles of incorporation of the exempt 2 organization. 3 Sec. 10. (1) The tax imposed by this act shall be adminis- 4 tered by the revenue commissioner underAct No. 122 of the5Public Acts of 1941, as amended, being sections 205.1 to 205.316of the Michigan Compiled Laws1941 PA 122, MCL 205.1 TO 205.31, 7 and this act.In case of conflict between Act No. 122 of the8Public Acts of 1941, as amendedIF 1941 PA 122, MCL 205.1 TO 9 205.31, and this act CONFLICT, the provisions of this act apply. 10 (2) Rules shall be promulgatedunderTO IMPLEMENT this act 11pursuant toUNDER the administrative procedures act of 1969, 12Act No. 306 of the Public Acts of 1969, as amended, being sec-13tions 24.201 to 24.328 of the Michigan Compiled Laws1969 PA 14 306, MCL 24.201 TO 24.328. 15 (3) Claims for refund pursuant to the 1988 amendatory act 16 amending section 2 shall be filed not later than March 31, 1989. 17 The approved refunds shall be paid without interest. The depart- 18 ment shall not pay refunds totaling more than $1,000,000.00 in 19 any 1 fiscal year, unless the single business tax act,Act20No. 228 of the Public Acts of 1975, being sections 208.1 to21208.145 of the Michigan Compiled Laws1975 PA 228, MCL 208.1 TO 22 208.145, is amended to impose a 1-year surcharge on the business 23 activity of contract construction to recover the cost of the 24 refunds. 25 (4) A claim for a refund pursuant to the final decision of 26 the Michigan court of appeals in the case of GTE Sprint 27 Communications Corp. v Michigan Department of Treasury, 179 Mich 03554'97 ** 19 1 App 276, 1989, LV DEN 436 Mich 874, 1990, shall be filed not 2 later than January 1, 1994 by a person that paid the tax under 3 this act for interstate access telephone services for the period 4 beginning August 1, 1988 through January 1, 1991. The approved 5 refund shall be paid without interest. The department shall pay 6 the refund in 12 equal installments commencing in the month that 7 the person begins applying the refunds to the billings of its 8 current Michigan interstate subscribers in a manner consistent 9 with the requirements of the federal communications commission. 10 (5) A CLAIM FOR A REFUND UNDER THE 1997 AMENDATORY ACT 11 AMENDING SECTION 4 TO INCLUDE A PERSON WHO LAUNDERS OR CLEANS 12 TEXTILES FOR REUSE, SALE, OR RENTAL UNDER A SERVICE AGREEMENT 13 WITH A TERM OF AT LEAST 5 DAYS WITHIN THE EXEMPTION FOR AN INDUS- 14 TRIAL PROCESSOR SHALL BE FILED NOT LATER THAN 90 DAYS AFTER THE 15 EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION. 03554'97 ** Final page. CSC