HOUSE BILL No. 5098


     September 25, 2001, Introduced by Reps. Jansen, DeWeese, Hummel, Ruth Johnson, Voorhees, Richardville and Pappageorge and referred to the
Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 270.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 270.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2000, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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      THIS ACT EQUAL TO 50% OF THE FAIR MARKET VALUE OF A PASSENGER

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      VEHICLE DONATED BY THE TAXPAYER TO AN ORGANIZATION EXEMPT FROM

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      TAXATION UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE.

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           (2) THE VALUE OF A PASSENGER VEHICLE SHALL BE DETERMINED

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      USING EITHER OF THE FOLLOWING:

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           (A) THE NATIONAL AUTOMOTIVE DEALERS ASSOCIATION OFFICIAL

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      USED CAR GUIDE, COMMONLY REFERRED TO AS THE BLUE BOOK, OR A

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      SIMILAR, NATIONALLY RECOGNIZED VALUATION SYSTEM.




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           (B) THE INTERNAL REVENUE CODE VALUATION SYSTEM TO DETERMINE

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      THE VALUE OF PROPERTY DONATED TO QUALIFIED ORGANIZATIONS.

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           (3) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

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      LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT AMOUNT THAT

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      EXCEEDS THE TAX LIABILITY SHALL NOT BE REFUNDED.

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           (4) AS USED IN THIS SECTION:

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           (A) "GROSS VEHICLE WEIGHT RATING" MEANS THE VALUE SPECIFIED

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      BY THE MANUFACTURER AS THE LOADED WEIGHT OF A SINGLE VEHICLE.

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           (B) "PASSENGER VEHICLE" MEANS A MOTOR VEHICLE WITH MOTIVE

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      POWER DESIGNED TO CARRY 10 PASSENGERS OR LESS, OR A VAN HAVING A

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      GROSS VEHICLE WEIGHT RATING OF 5,000 POUNDS OR LESS, BUT NOT

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      INCLUDING A MULTIPURPOSE PASSENGER MOTOR VEHICLE OR MOTORCYCLE,

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      BUT INCLUDING A PICKUP TRUCK.































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