STREAMLINED TAX: SALES TAX H.B. 5503 (H-1): FLOOR ANALYSIS
House Bill 5503 (Substitute H-1 as reported by the Committee of the Whole)
Sponsor: Representative Dianne Byrum
House Committee: Tax Policy
Senate Committee: Finance
CONTENT
The bill would amend the General Sales Tax Act to do the following:
-- Redefine "sale at retail" and define "sales price" and other terms.
-- Extend the sales tax to additional transactions, including the transmission and distribution of electricity, and telephone calling cards.
-- Create some exemptions and remove others.
-- Revise the deduction of a seller's bad debt.
-- Establish new record-keeping requirements for sellers of tangible personal property if Michigan became a member of the Streamlined Sales and Use Tax Agreement.
-- Provide for the determination of the source of a sale subject to the use tax.
The bill, together with House Bills 5502 (H-1), 5504 (H-2), and 5505 (H-1), would authorize Michigan's participation in the Streamlined Sales Tax Project (a multistate effort to simplify and modernize sales and use tax collection and administration). All of the bills are tie-barred to each other. House Bill 5503 (H-1) would take effect September 1, 2004.
MCL 205.51 et al. Legislative Analyst: J.P. Finet
FISCAL IMPACT
Please see FISCAL IMPACT on House Bill 5502 (H-1).
Date Completed: 6-8-04 Fiscal Analyst: Jay Wortley
floor\hb5503 (H-1) Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb5503/0304