HOUSE BILL No. 6058


     October 3, 2000, Introduced by Reps. Raczkowski, Bishop, Van Woerkom, Richner and Toy 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 4t.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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      TO THE STORAGE, USE, OR CONSUMPTION OF THE FOLLOWING:

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           (A) ENGINES OR CHASSIS THAT ARE LEASED, OWNED, OR OPERATED

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      BY A PROFESSIONAL RACING TEAM.

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           (B) SPARE, REPLACEMENT, OR REBUILDING PARTS OR COMPONENTS

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      FOR ENGINES AND CHASSIS DESCRIBED IN SUBDIVISION (A), BUT NOT

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      TIRES AND ACCESSORIES.

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           (2) AS USED IN THIS SECTION:

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           (A) "COMPETITIVE PROFESSIONAL RACING EVENT" MEANS A MOTOR

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      VEHICLE RACING EVENT SANCTIONED BY 1 OR MORE MOTOR RACING




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      SANCTIONED ORGANIZATIONS AT WHICH AGGREGATE CASH PRIZES IN EXCESS

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      OF $800,000.00 ARE AWARDED TO COMPETITORS.

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           (B) "FULL-TIME EMPLOYEE" MEANS AN INDIVIDUAL WHO IS EMPLOYED

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      FOR CONSIDERATION FOR 35 OR MORE HOURS PER WEEK OR WHO PROVIDES

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      ANY OTHER STANDARD OF SERVICE GENERALLY ACCEPTED BY CUSTOM OR

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      SPECIFIED BY CONTRACT AS FULL-TIME EMPLOYMENT.

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           (C) "MOTOR RACING VEHICLE" MEANS A VEHICLE WITH A CHASSIS,

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      ENGINE, AND PARTS DESIGNED EXCLUSIVELY FOR MOTOR RACING AND DOES

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      NOT INCLUDE A STOCK OR PRODUCTION MODEL VEHICLE THAT MAY BE MODI-

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      FIED FOR USE IN RACING.

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           (D) "PROFESSIONAL RACING TEAM" MEANS A PERSON THAT EMPLOYS

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      20 OR MORE FULL-TIME EMPLOYEES FOR THE PURPOSE OF CONDUCTING A

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      MOTOR VEHICLE RACING BUSINESS FOR PROFIT.  THE RACING BUSINESS

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      SHALL EXIST FOR THE PURPOSE OF RACING 1 OR MORE MOTOR RACING

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      VEHICLES IN 10 OR MORE COMPETITIVE PROFESSIONAL RACING EVENTS

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      EACH YEAR THAT COMPRISE ALL OR A PART OF A MOTOR RACING SERIES

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      SANCTIONED BY 1 OR MORE MOTOR RACING SANCTIONING ORGANIZATIONS.























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