HOUSE BILL No. 6051


     September 16, 1998, Introduced by Rep. Profit 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 4r.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4R.  (1) A PERSON SUBJECT TO TAX UNDER THIS ACT MAY

 2    EXCLUDE THE FOLLOWING FROM GROSS PROCEEDS USED FOR THE COMPUTA-

 3    TION OF THE TAX:

 4         (A) THE AMOUNT OF GROSS PROCEEDS FROM THE SALE OF AN

 5    ALTERNATIVE-FUELED VEHICLE, INCLUDING AN ALTERNATIVE-FUELED VEHI-

 6    CLE PURCHASED FOR LEASE TO ANOTHER PERSON, EQUAL TO THE DIFFER-

 7    ENCE BETWEEN THE COST OF THE ALTERNATIVE-FUELED VEHICLE AND THE

 8    COST THAT SAME MOTOR VEHICLE WOULD HAVE HAD WITH A TRADITIONAL

 9    FUEL SOURCE.

10         (B) THE SALE OF EQUIPMENT USED TO CONVERT A MOTOR VEHICLE TO

11    AN ALTERNATIVE-FUELED VEHICLE.


   06385'98                                                 CSC
                                              2

 1         (2) AS USED IN THIS SECTION:

 2         (A) "ALTERNATIVE FUEL" MEANS METHANOL, DENATURED ETHANOL,

 3    AND OTHER ALCOHOLS; MIXTURES CONTAINING 50% OR MORE BY VOLUME OF

 4    METHANOL, DENATURED ETHANOL, AND OTHER ALCOHOL, WITH GASOLINE OR

 5    OTHER FUELS; NATURAL GAS; LIQUEFIED PETROLEUM GAS; HYDROGEN;

 6    COAL-DERIVED LIQUID FUELS; AND ELECTRICITY.

 7         (B) "ALTERNATIVE-FUELED VEHICLE" MEANS A MOTOR VEHICLE THAT

 8    USES AN ALTERNATIVE FUEL AS THE SOLE SOURCE OF PROPULSION OR A

 9    DUAL-FUELED VEHICLE.

10         (C) "DUAL-FUELED VEHICLE" MEANS A MOTOR VEHICLE THAT HAS THE

11    CAPACITY TO BE PROPELLED BY EITHER CONVENTIONAL FUEL OR ALTERNA-

12    TIVE FUEL.

13         (D) "MOTOR VEHICLE" MEANS THAT TERM AS DEFINED IN SECTION 33

14    OF THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 257.33.





























   06385'98          Final page.                            CSC