HOUSE BILL No. 4520


     March 27, 2001, Introduced by Reps. Spade, Bernero, Adamini, Wojno, Lipsey, Dennis, Bovin, Woodward, Basham,
Sheltrown, Zelenko, Gieleghem, Whitmer, Plakas, Rich Brown, Lockwood and Garza and referred to the Committee on Tax Policy.


        A bill to amend 1937 PA 94, entitled

   "Use tax act,"

   by amending section 3 (MCL 205.93), as amended by 1999 PA 117.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 3.  (1) There is levied upon and there shall be col-

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      lected from every person in this state a specific tax for the

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      privilege of using, storing, or consuming tangible personal prop-

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      erty in this state at a rate equal to 6% of the price of the

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      property or services specified in section 3a.  Penalties and

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      interest shall be added to the tax if applicable as provided in

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      this act.  For the purpose of the proper administration of this

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      act and to prevent the evasion of the tax, it is presumed that

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      tangible personal property purchased is subject to the tax if

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      brought into the state within 90 days of the purchase date and is




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      considered as acquired for storage, use, or other consumption in

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      this state.

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           (2) The tax imposed by this section for the privilege of

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      using, storing, or consuming a vehicle, ORV, mobile home, air-

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      craft, snowmobile, or watercraft shall be collected before the

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      transfer of the vehicle, ORV, mobile home, aircraft, snowmobile,

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      or watercraft, except a transfer to a licensed dealer or retailer

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      for purposes of resale that arises by reason of a transaction

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      made by a person who does not transfer vehicles, ORVs, mobile

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      homes, aircraft, snowmobiles, or watercraft in the ordinary

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      course of his or her business done in this state.  The tax on a

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      vehicle, ORV, snowmobile, and watercraft shall be collected by

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      the secretary of state before the transfer of the vehicle, ORV,

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      snowmobile, or watercraft registration.  The tax on a mobile home

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      shall be collected by the department of consumer and industry

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      services, mobile home commission, or its agent before the trans-

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      fer of the certificate of title.  The tax on an aircraft shall be

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      collected by the department of treasury.  Notwithstanding any

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      limitation contained in section 2, the price tax base of any

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      vehicle, ORV, mobile home, aircraft, snowmobile, or watercraft

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      subject to taxation under this act shall be not less than its

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      retail dollar value at the time of acquisition as fixed pursuant

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      to rules promulgated by the department.

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           (3) The following transfers or purchases are not subject to

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      use tax:

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           (a) A transaction or a portion of a transaction if the

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      transferee or purchaser is the spouse, mother, father, brother,



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      sister, child, stepparent, stepchild, stepbrother, stepsister,

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      grandparent, grandchild, MOTHER-IN-LAW, FATHER-IN-LAW,

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      SISTER-IN-LAW, BROTHER-IN-LAW, DAUGHTER-IN-LAW, SON-IN-LAW, legal

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      ward, or a legally appointed guardian with a certified letter of

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      guardianship, of the transferor.

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           (b) A transaction or a portion of a transaction if the

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      transfer is a gift to a beneficiary in the administration of an

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      estate.

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           (c) If a vehicle, ORV, mobile home, aircraft, snowmobile, or

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      watercraft that has once been subjected to the Michigan sales or

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      use tax is transferred in connection with the organization, reor-

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      ganization, dissolution, or partial liquidation of an incorpo-

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      rated or unincorporated business and the beneficial ownership is

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      not changed.

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           (d) If an insurance company licensed to conduct business in

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      this state acquires ownership of a late model distressed vehicle

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      as defined in section 12a of the Michigan vehicle code, 1949

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      PA 300, MCL 257.12a, through payment of damages in response to a

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      claim or when the person who owned the vehicle before the insur-

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      ance company reacquires ownership from the company as part of the

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      settlement of a claim.

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           (4) The department may utilize the services, information, or

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      records of any other department or agency of state government in

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      the performance of its duties under this act, and other depart-

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      ments or agencies of state government are required to furnish

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      those services, information, or records upon the request of the

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      department.



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