SENATE BILL NO. 627


   June 1, 1999, Introduced by Senators NORTH, KOIVISTO, MC MANUS,
        GOUGEON, BULLARD, MC COTTER and STEIL and referred to the
        Committee on Finance.



        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 FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF THIS

 3    TAX SALES TO A DOMESTIC AIR CARRIER OF AN AIRCRAFT, OR PARTS AND

 4    MATERIALS, EXCLUDING SHOP EQUIPMENT OR FUEL, AFFIXED IN THIS

 5    STATE TO AN AIRCRAFT THAT HAS A MAXIMUM CERTIFIED TAKEOFF WEIGHT

 6    OF AT LEAST 6,000 POUNDS FOR USE IN THE TRANSPORT OF AIR CARGO,

 7    PASSENGERS, OR A COMBINATION OF AIR CARGO AND PASSENGERS.

 8         (2) AS USED IN THIS SECTION, "DOMESTIC AIR CARRIER" IS

 9    LIMITED TO ENTITIES ENGAGED IN THE COMMERCIAL TRANSPORT FOR HIRE

10    OF AIR CARGO, PASSENGERS, OR A COMBINATION OF AIR CARGO AND

11    PASSENGERS AS A BUSINESS ACTIVITY.


   03812'99                  Final Page                  CSC