SENATE BILL NO. 734


   September 23, 1999, Introduced by Senators SCHUETTE, HAMMERSTROM, 
        A. SMITH, MC COTTER, MC MANUS, SHUGARS and JAYE and referred 
        to the Committee on Finance.



        A bill to amend 1937 PA 94, entitled

   "Use tax act,"

   by amending section 4d (MCL 205.94d), as amended by 1992 PA 267.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 4d.  (1) The tax levied under this act does not apply

 2    to a purchase of a prescription drug for human use or food for

 3    human consumption; to the deposit on a returnable container for a

 4    beverage or the deposit on a carton or case that is used for

 5    returnable containers; TO MEALS PROVIDED TO EMPLOYEES DURING

 6    WORKING HOURS; to food or tangible personal property purchased

 7    with federal food stamps; or to fruit or vegetable seeds and

 8    fruit or vegetable plants if purchased at a place of business

 9    authorized to accept food stamps by the food and nutrition

10    service of the United States department of agriculture or a place

11    of business that has made a complete and proper application for


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 1    authorization to accept food stamps but has been denied

 2    authorization and provides proof of denial to the department of

 3    treasury.

 4         (2) "Prescription drug for human use" means insulin or a

 5    drug dispensed by a licensed pharmacist pursuant to a written

 6    prescription prescribed by a licensed physician or other health

 7    professional as defined in section 21005 of the public health

 8    code,  Act No. 368 of the Public Acts of 1978, being section

 9     333.21005 of the Michigan Compiled Laws  1978 PA
                       368, MCL

10    333.21005, for the use of a designated person, or oxygen dis-

11    pensed pursuant to a written prescription or order issued by a

12    licensed physician or other health professional as defined in

13    section 21005 of  Act No. 368 of the Public Acts of 1978
              THE

14    PUBLIC HEALTH CODE, 1978 PA 368, MCL 333.21005.

15         (3) "Food for human consumption" means all food or drink

16    items, including bottled water, primarily intended for human con-

17    sumption except a beverage with an alcoholic content of 1/2 of 1%

18    or more by volume, tobacco, or tobacco products.





















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