HOUSE BILL No. 4211


     February 13, 2001, Introduced by Rep. Vear 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 4d.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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      EXCLUDE FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF THE

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      TAX THE COST OF THE LABOR REQUIRED TO MANUFACTURE A MODULAR

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      BUILDING THAT WHEN SITUATED ON REAL PROPERTY WILL BECOME SUBJECT

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      TO PROPERTY TAXES UNDER THE GENERAL PROPERTY TAX ACT, 1893 PA

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      206, MCL 211.1 TO 211.157.  IF THE ACTUAL COST OF MATERIALS IS

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      NOT AVAILABLE, THERE IS A PRESUMPTION THAT THE COST OF MATERIALS

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      IS EQUAL TO 60% OF THE MODULAR BUILDING MANUFACTURER'S INVOICE

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      PRICE TO THE MODULAR BUILDER.

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           (2) AS USED IN THIS SECTION:




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           (A) "MODULAR BUILDING" INCLUDES, BUT IS NOT LIMITED TO,

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      SINGLE AND MULTIFAMILY HOUSES, APARTMENT UNITS, COMMERCIAL

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      BUILDINGS, AND ADDITIONS, COMPRISED OF 1 OR MORE SECTIONS

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      INTENDED TO BECOME REAL PROPERTY AND WHICH ARE PRIMARILY CON-

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      STRUCTED AT A LOCATION OTHER THAN THE PERMANENT SITE AT WHICH

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      THEY ARE TO BE FINALLY ASSEMBLED AND WHICH ARE SHIPPED TO THE

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      SITE WITH MOST PERMANENT COMPONENTS IN PLACE.

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           (B) "MODULAR BUILDING MANUFACTURER" MEANS A PERSON OR CORPO-

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      RATION WHO OWNS OR OPERATES A MANUFACTURING FACILITY AND IS

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      ENGAGED IN THE FABRICATION, CONSTRUCTION, AND ASSEMBLING OF

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      BUILDING SUPPLIES AND MATERIALS INTO MODULAR BUILDINGS AT A LOCA-

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      TION OTHER THAN AT THE SITE WHERE THE MODULAR BUILDING WILL BE

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      ASSEMBLED ON THE PERMANENT FOUNDATION AND MAY OR MAY NOT BE

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      ENGAGED IN THE PROCESS OF AFFIXING THE MODULAR BUILDING TO THE

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      FOUNDATION AT THE PERMANENT SITE.



























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