HB-5503, As Passed House, May 20, 2004
SUBSTITUTE FOR
HOUSE BILL NO. 5503
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending sections 1, 2, 2a, 3, 4, 4a, 4e, 4f, 4g, 4i, 4j, 4k,
4m, 4o, 4p, 4q, 4r, 4s, 4t, 4u, 4w, 4x, 5b, 6, 8, 9, 10, 17, and
23 (MCL 205.51, 205.52, 205.52a, 205.53, 205.54, 205.54a,
205.54e, 205.54f, 205.54g, 205.54i, 205.54j, 205.54k, 205.54m,
205.54o, 205.54p, 205.54q, 205.54r, 205.54s, 205.54t, 205.54u,
205.54w, 205.54x, 205.55b, 205.56, 205.58, 205.59, 205.60,
205.67, and 205.73), section 1 as amended by 2000 PA 390,
sections 2 and 23 as amended by 1993 PA 325, section 2a as added
by 1984 PA 228, section 3 as amended by 2002 PA 457, section 4 as
amended by 1998 PA 267, sections 4a, 4j, and 4q as amended and
sections 4r, 4t, 4u, and 4w as added by 1999 PA 116, section 4g
as amended by 2000 PA 417, section 4i as added by 1982 PA 23,
section 4k as added by 1986 PA 42, section 4m as added by 1993 PA
238, section 4o as added by 1994 PA 156, section 4p as added by
1998 PA 274, section 4s as added by 1999 PA 105, section 4x as
amended by 2001 PA 40, section 5b as added by 2002 PA 510,
section 6 as amended by 1998 PA 453, section 9 as amended by 1998
PA 365, section 10 as added by 2000 PA 149, and section 17 as
amended by 2001 PA 102, and by adding sections 1a, 4d, 4h, 6b,
11, 12, 18, 19, 20, and 21; and to repeal acts and parts of
acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 1. (1) As used in this act:
2 (a) "Person" means an individual, firm, partnership, joint
3 venture, association, social club, fraternal organization,
4 municipal or private corporation whether organized for profit or
5 not, company, estate, trust, receiver, trustee, syndicate, the
6 United States, this state, county, or any other group or
7 combination acting as a unit, and includes the plural as well as
8 the singular number, unless the intention to give a more limited
9 meaning is disclosed by the context.
10 (b) "Sale at
retail" means a transaction by which the
11 ownership of tangible
personal property is transferred for
12 consideration, if the
transfer is made in the ordinary course of
13 the transferor's
business and is made to the transferee for
14 consumption or use, or
for any purpose other than for resale, or
15 for lease, if the
rental receipts are taxable under the use tax
16 act, 1937 PA 94, MCL
205.91 to 205.111, in the form of tangible
17 personal property to a
person licensed under this act, or for
18 demonstration purposes
or lending or leasing to a public or
1 parochial school
offering a course in automobile driving.
2 However, a vehicle
purchased by the school shall be certified for
3 driver education and
shall not be reassigned for personal use of
4 the school's
administrative personnel. For a dealer selling a
5 new car or truck, the
exemption for demonstration purposes shall
6 be determined by the
number of new cars and trucks sold during
7 the current calendar
year or the immediately preceding year
8 without regard to
specific make or style in accordance with the
9 following schedule of
0 to 25, 2 units; 26 to 100, 7 units; 101
10 to 500, 20 units; 501
or more, 25 units; but not to exceed 25
11 cars and trucks in a
calendar year for demonstration purposes.
12 (c) "Sale at
retail" includes a conditional sale,
13 installment lease
sale, or other transfer of property if title is
14 retained as security
for the purchase price but is intended to be
15 transferred later.
16 (d) "Sale at
retail" includes the sale of electricity,
17 natural or artificial
gas, or steam, if the sale is made to the
18 consumer or user for
consumption or use rather than for resale.
19 Beginning September
20, 1999, sale at retail also includes the
20 sale of the
transmission and distribution of electricity, whether
21 the electricity is
purchased from the delivering utility or from
22 another provider, if
the sale is made to the consumer or user of
23 the electricity for
consumption or use rather than for resale.
24 Sale at retail also
includes the sale of a prepaid telephone
25 calling card or a
prepaid authorization number for telephone use,
26 rather than for
resale, and also includes the reauthorization of
27 a prepaid telephone
calling card or a prepaid authorization
1 number. Sale at
retail does not include the sale of water
2 through water mains or
the sale of water delivered in bulk tanks
3 in quantities of not
less than 500 gallons.
4 (e) "Sale at
retail" includes computer software offered for
5 general sale to the
public or software modified or adapted to the
6 user's needs or
equipment by the seller, only if the software is
7 available for sale
from a seller of software on an as is basis or
8 as an end product
without modification or adaptation. Sale at
9 retail does not
include specific charges for technical support or
10 for adapting or
modifying prewritten, standard, or canned
11 computer software
programs to a purchaser's needs or equipment if
12 those charges are
separately stated and identified. Sale at
13 retail does not
include computer software originally designed for
14 the exclusive use and
special needs of the purchaser. As used in
15 this subdivision,
"computer software" means a set of statements
16 or instructions that
when incorporated in a machine usable medium
17 is capable of causing
a machine or device having information
18 processing
capabilities to indicate, perform, or achieve a
19 particular function,
task, or result.
20 (f) "Sale at
retail" includes the sale of tangible personal
21 property by an
industrial laundry under a sale, rental, or
22 service agreement with
a term of at least 5 days.
23 (g) "Sale at
retail" does not include an isolated transaction
24 by a person not
licensed or required to be licensed under this
25 act, in which tangible
personal property is offered for sale,
26 sold, transferred, and
delivered by the owner.
27 (h) "Sale at
retail" does not include a commercial
1 advertising element if
the commercial advertising element is used
2 to create or develop a
print, radio, television, or other
3 advertisement, the
commercial advertising element is discarded or
4 returned to the
provider after the advertising message is
5 completed, and the
commercial advertising element is custom
6 developed by the
provider for the purchaser. As used in this
7 subdivision,
"commercial advertising element" means a negative or
8 positive photographic
image, an audiotape or videotape master, a
9 layout, a manuscript,
writing of copy, a design, artwork, an
10 illustration,
retouching, and mechanical or keyline
11 instructions. Sale at
retail includes black and white or full
12 color process
separation elements, an audiotape reproduction, or
13 a videotape
reproduction.
14 (i) "Gross
proceeds" means the amount received in money,
15 credits, subsidies,
property, or other money's worth in
16 consideration of a
sale at retail within this state, without a
17 deduction for the cost
of the property sold, the cost of material
18 used, the cost of
labor or service purchased, an amount paid for
19 interest or a
discount, a tax paid on cigarettes or tobacco
20 products at the time
of purchase, a tax paid on beer or liquor at
21 the time of purchase
or other expenses. Also, a deduction is not
22 allowed for losses.
Gross proceeds do not include an amount
23 received or billed by
the taxpayer for remittance to the employee
24 as a gratuity or tip,
if the gratuity or tip is separately
25 identified and
itemized on the guest check or billed to the
26 customer. In a
taxable sale at retail of a motor vehicle, if
27 another motor vehicle
is used as part payment of the purchase
1 price, the value of
the motor vehicle used as part payment of the
2 purchase price shall
be that value agreed to by the parties to
3 the sale as evidenced
by the signed statement executed pursuant
4 to section 251 of the
Michigan vehicle code, 1949 PA 300,
5 MCL 257.251. A credit
or refund for returned goods or a refund
6 less an allowance for
use made for a motor vehicle returned under
7 1986 PA 87, MCL
257.1401 to 257.1410, as certified by the
8 manufacturer on a form
provided by the department of treasury,
9 may be deducted.
10 (b) "Sale at retail" or "retail sale" means a sale, lease, or
11 rental of tangible personal property for any purpose other than
12 for resale, sublease, or subrent.
13 (c) "Gross proceeds" means sales price.
14 (d) "Sales price" means the total amount of consideration,
15 including cash, credit, property, and services, for which
16 tangible personal property or services are sold, leased, or
17 rented, valued in money, whether received in money or otherwise,
18 and applies to the measure subject to sales tax. Sales price
19 includes the following subparagraphs (i) through (vi) and
20 excludes subparagraphs (vii) through (viii):
21 (i) Seller's cost of the property sold.
22 (ii) Cost of materials used, labor or service cost, interest,
23 losses, costs of transportation to the seller, taxes imposed on
24 the seller other than taxes imposed by this act, and any other
25 expense of the seller.
26 (iii) Charges by the seller for any services necessary to
27 complete the sale, other than the following:
1 (A) An amount received or billed by the taxpayer for
2 remittance to the employee as a gratuity or tip, if the gratuity
3 or tip is separately identified and itemized on the guest check
4 or billed to the customer.
5 (B) Labor or service charges involved in maintenance and
6 repair work on tangible personal property of others if separately
7 itemized.
8 (iv) Delivery charges incurred or to be incurred before the
9 completion of the transfer of ownership of tangible personal
10 property from the seller to the purchaser.
11 (v) Installation charges incurred or to be incurred before
12 the completion of the transfer of ownership of tangible personal
13 property from the seller to the purchaser.
14 (vi) Credit for any trade-in.
15 (vii) Interest, financing, or carrying charges from credit
16 extended on the sale of personal property or services, if the
17 amount is separately stated on the invoice, bill of sale, or
18 similar document given to the purchaser.
19 (viii) Any taxes legally imposed directly on the consumer
20 that are separately stated on the invoice, bill of sale, or
21 similar document given to the purchaser.
22 (e) (j) "Business"
includes an activity engaged in by a
23 person or caused to be engaged in by that person with the object
24 of gain, benefit, or advantage, either direct or indirect.
25 (f) (k) "Tax
year" or "taxable year" means the fiscal year
26 of the state or the taxpayer's fiscal year if permission is
27 obtained by the taxpayer from the department to use the
1 taxpayer's fiscal year as the tax period instead.
2 (g) (l) "Department"
means the revenue division of the
3 department of treasury.
4 (h) (m) "Taxpayer"
means a person subject to a tax under
5 this act.
6 (i) (n) "Tax"
includes a tax, interest, or penalty levied
7 under this act.
8 (j) (o) "Textiles"
means goods that are made of or
9 incorporate woven or nonwoven fabric, including, but not limited
10 to, clothing, shoes, hats, gloves, handkerchiefs, curtains,
11 towels, sheets, pillows, pillow cases, tablecloths, napkins,
12 aprons, linens, floor mops, floor mats, and thread. Textiles
13 also include materials used to repair or construct textiles, or
14 other goods used in the rental, sale, or cleaning of textiles.
15 (2) If the department determines that it is necessary for the
16 efficient administration of this act to regard an unlicensed
17 person, including a salesperson, representative, peddler, or
18 canvasser as the agent of the dealer, distributor, supervisor, or
19 employer under whom the unlicensed person operates or from whom
20 the unlicensed person obtains the tangible personal property sold
21 by the unlicensed person, irrespective of whether the unlicensed
22 person is making sales on the unlicensed person's own behalf or
23 on behalf of the dealer, distributor, supervisor, or employer,
24 the department may so regard the unlicensed person and may regard
25 the dealer, distributor, supervisor, or employer as making sales
26 at retail at the retail price for the purposes of this act.
27 Sec. 1a. As used in this act:
1 (a) "Alcoholic beverage" means a beverage suitable for human
2 consumption that contains 1/2 of 1% or more of alcohol by
3 volume.
4 (b) "Computer" means an electronic device that accepts
5 information in digital or similar form and manipulates it for a
6 result based on a sequence of instructions.
7 (c) "Computer software" means a set of coded instructions
8 designed to cause a computer or automatic data processing
9 equipment to perform a task.
10 (d) "Delivered electronically" means delivered from the
11 seller to the purchaser by means other than tangible storage
12 media.
13 (e) "Delivery charges" means charges by the seller for
14 preparation and delivery to a location designated by the
15 purchaser of tangible personal property or services. Delivery
16 charges include, but are not limited to, transportation,
17 shipping, postage, handling, crating, and packing.
18 (f) "Dietary supplement" means any product, other than
19 tobacco, intended to supplement the diet that is all of the
20 following:
21 (i) Required to be labeled as a dietary supplement
22 identifiable by the "supplemental facts" box found on the label
23 as required by 21 CFR 101.36.
24 (ii) Contains 1 or more of the following dietary
25 ingredients:
26 (A) A vitamin.
27 (B) A mineral.
1 (C) An herb or other botanical.
2 (D) An amino acid.
3 (E) A dietary substance for use by humans to supplement the
4 diet by increasing the total dietary intake.
5 (F) A concentrate, metabolite, constituent, extract, or
6 combination of any ingredient listed in sub-subparagraphs (A)
7 through (E).
8 (iii) Intended for ingestion in tablet, capsule, powder,
9 softgel, gelcap, or liquid form, or if not intended for ingestion
10 in 1 of those forms, is not represented as conventional food or
11 for use as a sole item of a meal or of the diet.
12 (g) "Direct mail" means printed material delivered or
13 distributed by United States mail or other delivery service to a
14 mass audience or to addressees on a mailing list provided by the
15 purchaser or at the direction of the purchaser when the cost of
16 the items are not billed directly to the recipients, including
17 tangible personal property supplied directly or indirectly by the
18 purchaser to the direct mail seller for inclusion in the package
19 containing the printed material, but not including multiple items
20 of printed material delivered to a single address.
21 (h) "Drug" means a compound, substance, or preparation, or
22 any component of a compound, substance, or preparation, other
23 than food or food ingredients, dietary supplements, or alcoholic
24 beverages, intended for human use that is 1 or more of the
25 following:
26 (i) Recognized in the official United States pharmacopoeia,
27 official homeopathic pharmacopoeia of the United States, or
1 official national formulary, or in any of their supplements.
2 (ii) Intended for use in the diagnosis, cure, mitigation,
3 treatment, or prevention of disease.
4 (iii) Intended to affect the structure or any function of the
5 body.
6 (i) "Durable medical equipment" means equipment for home use,
7 other than mobility enhancing equipment, dispensed pursuant to a
8 prescription, including repair or replacement parts for that
9 equipment, that does all of the following:
10 (i) Can withstand repeated use.
11 (ii) Is primarily and customarily used to serve a medical
12 purpose.
13 (iii) Is not useful generally to a person in the absence of
14 illness or injury.
15 (iv) Is not worn in or on the body.
16 (j) "Electronic" means relating to technology having
17 electrical, digital, magnetic, wireless, optical,
18 electromagnetic, or similar capabilities.
19 (k) "Lease or rental" means any transfer of possession or
20 control of tangible personal property for a fixed or
21 indeterminate term for consideration and may include future
22 options to purchase or extend. This definition applies only to
23 leases and rentals entered into after the effective date of the
24 amendatory act that added this section and has no retroactive
25 impact on leases and rentals that existed on that date. Lease or
26 rental does not include the following:
27 (i) A transfer of possession or control of tangible personal
1 property under a security agreement or deferred payment plan that
2 requires the transfer of title upon completion of the required
3 payments.
4 (ii) A transfer of possession or control of tangible personal
5 property under an agreement requiring transfer of title upon
6 completion of the required payments and payment of an option
7 price that does not exceed $100.00 or 1% of the total required
8 payments, whichever is greater.
9 (iii) The provision of tangible personal property along with
10 an operator for a fixed or indeterminate period of time, where
11 that operator is necessary for the equipment to perform as
12 designed. To be necessary, an operator must do more than
13 maintain, inspect, or set up the tangible personal property.
14 (iv) An agreement covering motor vehicles or trailers if the
15 amount of consideration may be increased or decreased by
16 reference to the amount realized upon sale or disposition of the
17 property as defined in section 7701(h)(1) of the internal revenue
18 code, 26 USC 7701.
19 (l) "Mobility enhancing equipment" means equipment, other
20 than durable medical equipment or a motor vehicle or equipment on
21 a motor vehicle normally provided by a motor vehicle
22 manufacturer, dispensed pursuant to a prescription, including
23 repair or replacement parts for that equipment, that is all of
24 the following:
25 (i) Primarily and customarily used to provide or increase the
26 ability to move from 1 place to another and is appropriate for
27 use at home or on a motor vehicle.
1 (ii) Not generally used by a person with normal mobility.
2 (m) "Prescription" means an order, formula, or recipe, issued
3 in any form of oral, written, electronic, or other means of
4 transmission by a licensed physician or other health professional
5 as defined in section 3501 of the insurance code of 1956, 1956 PA
6 218, MCL 500.3501.
7 (n) "Prewritten computer software" means computer software,
8 including prewritten upgrades, that is delivered by any means and
9 that is not designed and developed by the author or other creator
10 to the specifications of a specific purchaser. Prewritten
11 computer software includes the following:
12 (i) Any combination of 2 or more prewritten computer software
13 programs or portions of prewritten computer software programs.
14 (ii) Computer software designed and developed by the author
15 or other creator to the specifications of a specific purchaser if
16 it is sold to a person other than that specific purchaser.
17 (iii) The modification or enhancement of prewritten computer
18 software or portions of prewritten computer software where the
19 modification or enhancement is designed and developed to the
20 specifications of a specific purchaser unless there is a
21 reasonable, separately stated charge or an invoice or other
22 statement of the price is given to the purchaser for the
23 modification or enhancement. If a person other than the original
24 author or creator modifies or enhances prewritten computer
25 software, that person is considered to be the author or creator
26 of only that person's modifications or enhancements.
27 (o) "Prosthetic device" means a replacement, corrective, or
1 supportive device, other than contact lenses and dental
2 prosthesis, dispensed pursuant to a prescription, including
3 repair or replacement parts for that device, worn on or in the
4 body to do 1 or more of the following:
5 (i) Artificially replace a missing portion of the body.
6 (ii) Prevent or correct a physical deformity or malfunction
7 of the body.
8 (iii) Support a weak or deformed portion of the body.
9 (p) "Tangible personal property" means personal property that
10 can be seen, weighed, measured, felt, or touched or that is in
11 any other manner perceptible to the senses and includes
12 electricity, water, gas, steam, and prewritten computer
13 software.
14 (q) "Tobacco" means cigarettes, cigars, chewing or pipe
15 tobacco, or any other item that contains tobacco.
16 Sec. 2. (1) Except as provided in section 2a, there is
17 levied upon and there shall be collected from all persons engaged
18 in the business of making
sales at retail, as defined in section
19 1 by which ownership of tangible personal property
is
20 transferred for consideration, an annual tax for the privilege of
21 engaging in that business equal to 6% of the gross proceeds of
22 the business, plus the penalty and interest if applicable as
23 provided by law, less deductions allowed by this act.
24 (2) The tax under subsection (1) also applies to the
25 following:
26 (a) The transmission and distribution of electricity, whether
27 the electricity is purchased from the delivering utility or from
1 another provider, if the sale is made to the consumer or user of
2 the electricity for consumption or use rather than for resale.
3 (b) The sale of a prepaid telephone calling card or a prepaid
4 authorization number for telephone use, rather than for resale,
5 including the reauthorization of a prepaid telephone calling card
6 or a prepaid authorization number.
7 (c) A conditional sale, installment lease sale, or other
8 transfer of property, if title is retained as security for the
9 purchase but is intended to be transferred later.
10 (3) (2) Any
person engaged in the business of making sales
11 at retail who is at the same time engaged in some other kind of
12 business, occupation, or profession not taxable under this act
13 shall keep books to show separately the transactions used in
14 determining the tax levied by this act. If the person fails to
15 keep separate books, there shall be levied upon him or her the
16 tax provided for in subsection (1) equal to 6% of the entire
17 gross proceeds of both or all of his or her businesses. The
18 taxes levied by this section are a personal obligation of the
19 taxpayer.
20 (4) A meal provided free of charge or at a reduced rate to an
21 employee during work hours by a food service establishment
22 licensed by the Michigan department of agriculture for the
23 convenience of the employer is not considered transferred for
24 consideration.
25 Sec. 2a. (1) For a sale at retail to a person of a vehicle
26 for which a special registration is secured pursuant to section
27 226(9) of Act No. 300
of the Public Acts of 1949, being section
1 257.226 of the
Michigan Compiled Laws the
Michigan vehicle code,
2 1949 PA 300, MCL 257.226, the tax imposed under this act shall be
3 reduced by the sum of the following amounts:
4 (a) The use tax imposed on the vehicle by the state to which
5 the vehicle was removed and in which it is registered.
6 (b) The amount obtained, even if negative, by subtracting the
7 sales tax that would have been imposed on the vehicle by the
8 state to which the vehicle was removed and in which it is
9 registered if the vehicle had been purchased in that state, from
10 the tax otherwise due under this act.
11 (2) The reduction in the tax made pursuant to subsection (1)
12 shall not exceed the tax otherwise due under this act.
13 (3) The taxpayer
shall obtain from the person purchasing the
14 vehicle, and shall
furnish to the department on a form provided
15 by the department, a
certification person purchasing
the vehicle
16 shall furnish to the seller a certification, on a form prescribed
17 by the department, containing the name, address, and signature of
18 the purchaser, a statement indicating the vehicle shall be
19 primarily used, stored, and registered outside of this state, and
20 the name of the jurisdiction in which the vehicle shall be
21 registered.
22 Sec. 3. (1) If Subject
to subsection (4), if a person
23 engages or continues in a business for which a privilege tax is
24 imposed by this act, the person shall, under rules the department
25 prescribes, apply for and obtain from the department a license to
26 engage in and to conduct that business for the current tax year.
27 When If the department considers it necessary in
order to
1 secure the collection of the tax or if an applicant taxpayer has
2 at any time failed, refused, or neglected to pay any tax or
3 interest or penalty upon a tax or has attempted to evade the
4 payment of any tax or interest or penalty upon a tax by means of
5 petition in bankruptcy, or if the applicant taxpayer is a
6 corporation and the department has reason to believe that the
7 management or control of the corporation is under persons who
8 have failed to pay any tax or interest or penalty upon a tax
9 under this act, the department shall require a surety bond
10 payable to the state of Michigan, upon which the applicant or
11 taxpayer shall be the obligor, in the sum of not less than
12 $1,000.00 nor more than $25,000.00. The surety bond shall be
13 conditioned that the applicant or taxpayer shall comply with this
14 act and shall promptly file true reports and pay the taxes,
15 interest, and penalties provided for or required by this act.
16 The bonds shall be approved as to the amount and surety by the
17 department. The applicant or taxpayer may in lieu of the surety
18 bond deposit a sum of money with the department in an amount the
19 department determines to guarantee the payment of the tax,
20 interest, and penalty and compliance with this act. However, the
21 amount determined by the department shall not exceed the
22 estimated tax payable during a 1-year period. The applicant or
23 taxpayer shall be licensed to engage in and conduct the
24 business. The department may require the applicant or taxpayer
25 to furnish other and
further bond as any additional bond that
26 it considers necessary within the limits in this section, after
27 giving a 30-day notice in writing. The license shall be renewed
1 annually if the taxpayer
pays the tax accrued to the this state
2 under this act. A person shall not engage or continue in a
3 business taxable under this act without securing a license. A
4 person, firm, or corporation engaged solely in industrial
5 processing or agricultural producing under this act and who makes
6 no sales at retail within the meaning of this act is not required
7 to have a license.
8 (2) The revenue
commissioner state treasurer or his or her
9 designee, after notice and hearing, may suspend the license of a
10 person who violates or fails to comply with this act or a rule
11 promulgated by the
department under this act. The revenue
12 commissioner state treasurer or his or her designee may
restore
13 licenses after suspension. If a person engages in business
14 taxable under this act while his or her license is in suspension,
15 the tax imposed under this act is imposed and payable with
16 respect to that business.
17 (3) A person who engages in any business in this state that
18 is taxable under this act and who fails to secure from the
19 revenue commissioner
or his or her designee department
a
20 license to engage in that business or who continues to engage in
21 business after the license has expired or was suspended by the
22 revenue commissioner state treasurer or his or her designee is
23 guilty of a misdemeanor punishable by a fine of not more than
24 $1,000.00 or imprisonment for not more than 1 year, or both.
25 (4) A seller registered under the streamlined sales and use
26 tax agreement who is not otherwise obligated to obtain a sales
27 tax license in this state is not required to obtain a sales tax
1 license because of that registration.
2 Sec. 4. (1) In computing the amount of tax levied under
3 this act for any month, a taxpayer not subject to section 6(2)
4 may deduct the amount provided by subdivision (a) or (b),
5 whichever is greater:
6 (a) If the tax that
accrued to the this state from the
7 sales at retail during the preceding month is remitted to the
8 department on or before
the seventh twelfth day of the month in
9 which remittance is due, 0.75% of the tax due at a rate of 4% for
10 the preceding monthly period, but not to exceed $20,000.00 of the
11 tax due for that month.
If the tax that accrued to the this
12 state from the sales at retail during the preceding month is
13 remitted to the
department after the seventh twelfth day and on
14 or before the fifteenth
twentieth day of the month in which
15 remittance is due, 0.50% of the tax due at a rate of 4% for the
16 preceding monthly period, but not to exceed $15,000.00 of the tax
17 due for that month.
18 (b) The tax at a rate of 4% due on $150.00 of taxable gross
19 proceeds for the preceding monthly period, or a prorated portion
20 of $150.00 of the taxable gross proceeds for the preceding month
21 if the taxpayer engaged in business for less than a month.
22 (2) Before
January 1, 1999, in computing the amount of tax
23 levied under this act
for any month, a taxpayer subject to
24 section 6(2) may
deduct the amount provided in this subsection.
25 If the tax that is due
to the state is remitted to the department
26 on or before the
eleventh day of the month in which remittance is
27 due, 0.75% of the tax
due at a rate of 4% but not to exceed
1 $20,000.00 of the tax
due for that month may be deducted. If the
2 tax that is due to the
state is remitted to the department after
3 the eleventh day and
on or before the eighteenth day of the month
4 in which remittance is
due, 0.50% of the tax due at a rate of 4%
5 but not to exceed
$15,000.00 of the tax due for that month may be
6 deducted.
7 (2) (3) Beginning
January 1, 1999, in computing the amount
8 of tax levied under this act for any month, a taxpayer who is
9 subject to section 6(3)
6(2) may deduct from the amount of the
10 tax paid 0.50% of the tax due at a rate of 4%.
11 (3) (4) A
deduction is not allowed under this section for
12 payments of taxes made to the department after the day the
13 taxpayer is required to pay, pursuant to section 6, the tax
14 imposed by this act.
15 (4) (5) If,
pursuant to section 6(5) 6(4), the
16 commissioner of
revenue department prescribes
the filing of
17 returns and the payment of the tax for periods in excess of 1
18 month, a taxpayer is entitled to a deduction from the tax
19 collections remitted to the department for the extended payment
20 period that is equivalent to the deduction allowed under
21 subsection (1) , or
(2) , or (3) for monthly periods.
22 (5) (6) The
commissioner department may prescribe the
23 filing of estimated returns and annual periodic reconciliations
24 as necessary to carry out the purposes of this section.
25 (7) A person
subject to a tax under this act shall not
26 include in the amount
of his or her gross proceeds used for the
27 computation of the tax
any proceeds of his or her business
1 derived from sales to
the United States, its unincorporated
2 agencies and
instrumentalities, any incorporated agency or
3 instrumentality of the
United States wholly owned by the United
4 States or by a
corporation wholly owned by the United States, the
5 American Red Cross and
its chapters and branches, and this state
6 or its departments and
institutions or any of its political
7 subdivisions.
8 (6) A seller registered under the streamlined sales and use
9 tax agreement may claim a deduction under this section if
10 provided for in the streamlined sales and use tax administration
11 act.
12 Sec. 4a. (1) A
person subject to tax under this act may
13 exclude from the
amount of the gross proceeds used for the
14 computation of the
tax, a sale of tangible personal property,
15 subject Subject to subsection (2), the following
are exempt from
16 the tax under this act:
17 (a) Not A
sale of tangible personal property not for resale
18 to a nonprofit school, nonprofit hospital, or nonprofit home for
19 the care and maintenance of children or aged persons operated by
20 an entity of government, a regularly organized church, religious,
21 or fraternal organization, a veterans' organization, or a
22 corporation incorporated
under the laws of the this state, if
23 the income or benefit from the operation does not inure, in whole
24 or in part, to an individual or private shareholder, directly or
25 indirectly, and if the activities of the entity or agency are
26 carried on exclusively for the benefit of the public at large and
27 are not limited to the advantage, interests, and benefits of its
1 members or any restricted
group. At the time of the transfer of
2 this tangible personal
property, the transferee shall sign a
3 statement, in a form
approved by the department, stating that the
4 property is to be used
or consumed in connection with the
5 operation of the
institution or agency and that the institution
6 or agency qualifies as
an exempt entity under this subdivision.
7 The statement shall be
accepted by all courts as prima facie
8 evidence of the
exemption and the statement shall provide that if
9 the claim for tax
exemption is disallowed the transferee will
10 reimburse the
transferor for the amount of tax involved. A sale
11 of tangible personal property to a parent cooperative preschool
12 is exempt from taxation under this act. As used in this
13 subdivision, "parent cooperative preschool" means a nonprofit,
14 nondiscriminatory educational institution, maintained as a
15 community service and administered by parents of children
16 currently enrolled in the preschool, that provides an educational
17 and developmental program for children younger than compulsory
18 school age, that provides an educational program for parents,
19 including active participation with children in preschool
20 activities, that is directed by qualified preschool personnel,
21 and that is licensed by the department of consumer and industry
22 services pursuant to 1973 PA 116, MCL 722.111 to 722.128.
23 (b) Not A
sale of tangible personal property not for resale
24 to a regularly organized church or house of religious worship,
25 except the following:
26 (i) Sales in activities that are mainly commercial
27 enterprises.
1 (ii) Sales of vehicles licensed for use on public highways
2 other than a passenger van or bus with a manufacturer's rated
3 seating capacity of 10 or more that is used primarily for the
4 transportation of persons for religious purposes.
5 (c) To The
sale of food to bona fide enrolled students ,
6 of food by a school or other educational institution not
7 operated for profit.
8 (d) That is The
sale of a vessel designated for commercial
9 use of registered tonnage of 500 tons or more, if produced upon
10 special order of the purchaser, and bunker and galley fuel,
11 provisions, supplies, maintenance, and repairs for the exclusive
12 use of the vessel engaged in interstate commerce.
13 (e) To A
sale of tangible personal property to persons
14 engaged in a business enterprise and using or consuming the
15 tangible personal property in the tilling, planting, caring for,
16 or harvesting of the things of the soil; in the breeding,
17 raising, or caring for livestock, poultry, or horticultural
18 products, including transfers of livestock, poultry, or
19 horticultural products for further growth; or in the direct
20 gathering of fish, by net, line, or otherwise only by an
21 owner-operator of the business enterprise, not including a
22 charter fishing business enterprise. This exemption includes
23 agricultural land tile, which means fired clay or perforated
24 plastic tubing used as part of a subsurface drainage system for
25 land, and subsurface irrigation pipe, if the land tile or
26 irrigation pipe is used in the production of agricultural
27 products as a business
enterprise. At the time of the transfer
1 of this tangible
personal property, the transferee shall sign a
2 statement, in a form
approved by the department, stating that the
3 property is to be used
or consumed in connection with the
4 production of
horticultural or agricultural products as a
5 business enterprise,
or in connection with fishing as an
6 owner-operator
business enterprise. The statement shall be
7 accepted by all courts
as prima facie evidence of the exemption.
8 This exemption includes a portable grain bin, which means a
9 structure that is used or is to be used to shelter grain and that
10 is designed to be disassembled without significant damage to its
11 component parts. This exemption also includes grain drying
12 equipment and natural or propane gas used to fuel that equipment
13 for agricultural purposes. This exemption does not include
14 transfers of food, fuel, clothing, or any similar tangible
15 personal property for personal living or human consumption. This
16 exemption does not include tangible personal property permanently
17 affixed and becoming a structural part of real estate.
18 (f) That is The
sale of a copyrighted motion picture film
19 or a newspaper or periodical admitted under federal postal laws
20 and regulations effective September 1, 1985 as second-class mail
21 matter or as a controlled circulation publication or qualified to
22 accept legal notices for publication in this state, as defined by
23 law, or any other newspaper or periodical of general circulation,
24 established not less than 2 years, and published not less than
25 once a week. Tangible personal property used or consumed in
26 producing a copyrighted motion picture film, a newspaper
27 published more than 14 times per year, or a periodical published
1 more than 14 times per year, and not becoming a component part of
2 that film, newspaper, or periodical is subject to the tax.
3 After December 31,
1993, tangible Tangible
personal property
4 used or consumed in producing a newspaper published 14 times or
5 less per year or a periodical published 14 times or less per year
6 and that portion or percentage of tangible personal property used
7 or consumed in producing an advertising supplement that becomes a
8 component part of a newspaper or periodical is exempt from the
9 tax under this subdivision. A claim for a refund for taxes paid
10 before January 1, 1999, under this subdivision shall be made
11 before June 30, 1999. For purposes of this subdivision, tangible
12 personal property that becomes a component part of a newspaper or
13 periodical and consequently not subject to tax includes an
14 advertising supplement inserted into and circulated with a
15 newspaper or periodical that is otherwise exempt from tax under
16 this subdivision, if the advertising supplement is delivered
17 directly to the newspaper or periodical by a person other than
18 the advertiser, or the advertising supplement is printed by the
19 newspaper or periodical.
20 (g) To A
sale of tangible personal property to persons
21 licensed to operate commercial radio or television stations if
22 the property is used in the origination or integration of the
23 various sources of program material for commercial radio or
24 television transmission. This subdivision does not include a
25 vehicle licensed and titled for use on public highways or
26 property used in the transmission to or receiving from an
27 artificial satellite.
1 (h) That is a
hearing aid, contact lenses if prescribed for
2 a specific disease
that precludes the use of eyeglasses, or any
3 other apparatus,
device, or equipment used to replace or
4 substitute for a part
of the human body, or used to assist the
5 disabled person to
lead a reasonably normal life if the tangible
6 personal property is
purchased on a written prescription or order
7 issued by a health
professional as defined by section 21005 of
8 the public health
code, 1978 PA 368, MCL 333.21005; a hearing aid
9 battery; or eyeglasses
prescribed or dispensed to correct the
10 person's vision by an
ophthalmologist, optometrist, or optician.
11 The sale of a prosthetic device, durable medical equipment, or
12 mobility enhancing equipment.
13 (i) That is The
sale of a vehicle not for resale to a
14 Michigan nonprofit corporation organized exclusively to provide a
15 community with ambulance or fire department services.
16 (j) To A
sale of tangible personal property to inmates in a
17 penal or correctional institution purchased with scrip or its
18 equivalent issued and redeemed by the institution.
19 (k) To A
sale of textbooks sold by a public or nonpublic
20 school to or for the use of students enrolled in any part of a
21 kindergarten through
twelfth grade program. , of textbooks sold
22 by a public or
nonpublic school.
23 (l) Installed A sale of tangible personal property
24 installed as a component part of a water pollution control
25 facility for which a tax exemption certificate is issued pursuant
26 to part 37 of the natural resources and environmental protection
27 act, 1994 PA 451, MCL 324.3701 to 324.3708, or an air pollution
1 control facility for which a tax exemption certificate is issued
2 pursuant to part 59 of the natural resources and environmental
3 protection act, 1994 PA 451, MCL 324.5901 to 324.5908.
4 (m) To a
purchaser of a new motor vehicle purchased before
5 January 1, 1993 if the
purchaser qualifies for a special
6 registration under
section 226(12) of the Michigan vehicle code,
7 1949 PA 300, MCL
257.226, and the vehicle is purchased through a
8 country determined by
the department to be providing a like or
9 complete exemption for
the purchase of a new motor vehicle to be
10 removed from that
country.
11 (m) (n)
That is the following sold or leased The sale or
12 lease of the following to an industrial laundry after December
13 31, 1997:
14 (i) Textiles and disposable products including, but not
15 limited to, soap, paper, chemicals, tissues, deodorizers and
16 dispensers, and all related items such as packaging, supplies,
17 hangers, name tags, and identification tags.
18 (ii) Equipment, whether owned or leased, used to repair and
19 dispense textiles including, but not limited to, roll towel
20 cabinets, slings, hardware, lockers, mop handles and frames, and
21 carts.
22 (iii) Machinery, equipment, parts, lubricants, and repair
23 services used to clean, process, and package textiles and related
24 items, whether owned or leased.
25 (iv) Utilities such as electric, gas, water, or oil.
26 (v) Production washroom equipment and mending and packaging
27 supplies and equipment.
1 (vi) Material handling equipment including, but not limited
2 to, conveyors, racks, and elevators and related control
3 equipment.
4 (vii) Wastewater pretreatment equipment and supplies and
5 related maintenance and repair services.
6 (n) (o) To
A sale of tangible personal property to a person
7 holding a direct payment permit under section 8 of the use tax
8 act, 1937 PA 94, MCL 205.98.
9 (2) The tangible personal property under subsection (1) is
10 exempt only to the extent that that property is used for the
11 exempt purpose if one is stated in subsection (1). The exemption
12 is limited to the percentage of exempt use to total use
13 determined by a reasonable formula or method approved by the
14 department.
15 Sec. 4d. The following are exempt from the tax under this
16 act:
17 (a) The sale of tangible personal property to a person who is
18 a lessor licensed under the use tax act, 1937 PA 94, MCL 205.91
19 to 205.111, and whose rental receipts are taxed or specifically
20 exempt under the use tax act.
21 (b) The sale of a vehicle acquired for lending or leasing to
22 a public or parochial school for use in a course in driver
23 education.
24 (c) The sale of a vehicle purchased by a public or parochial
25 school if that vehicle is certified for driver education and is
26 not reassigned for personal use by the school's administrative
27 personnel.
1 (d) The sale of water through water mains, the sale of water
2 delivered in bulk tanks in quantities of not less than 500
3 gallons, or the sale of bottled water.
4 (e) The sale of tangible personal property to a person for
5 demonstration purposes. For a dealer selling a new car or truck,
6 the exemption for demonstration purposes shall be determined by
7 the number of new cars and trucks sold during the current
8 calendar year or the immediately preceding year without regard to
9 specific make or style in accordance with the following schedule
10 of 0 to 25, 2 units; 26 to 100, 7 units; 101 to 500, 20 units;
11 501 or more, 25 units; but not to exceed 25 cars and trucks in a
12 calendar year for demonstration purposes.
13 (f) Specific charges for technical support or for adapting or
14 modifying prewritten computer software programs to a purchaser's
15 needs or equipment if those charges are separately stated and
16 identified.
17 (g) The sale of computer software originally designed for the
18 exclusive use and special needs of the purchaser.
19 (h) The sale of a commercial advertising element if the
20 commercial advertising element is used to create or develop a
21 print, radio, television, or other advertisement, the commercial
22 advertising element is discarded or returned to the provider
23 after the advertising message is completed, and the commercial
24 advertising element is custom developed by the provider for the
25 purchaser. As used in this subdivision, "commercial advertising
26 element" means a negative or positive photographic image, an
27 audiotape or videotape master, a layout, a manuscript, writing of
1 copy, a design, artwork, an illustration, retouching, and
2 mechanical or keyline instructions. This exemption does not
3 include black and white or full color process separation
4 elements, an audiotape reproduction, or a videotape
5 reproduction.
6 (i) A sale made outside of the ordinary course of the
7 seller's business.
8 (j) An isolated transaction by a person not licensed or
9 required to be licensed under this act, in which tangible
10 personal property is offered for sale, sold, or transferred and
11 delivered by the owner.
12 (k) The sale of oxygen for human use dispensed pursuant to a
13 prescription.
14 (l) The sale of insulin for human use.
15 Sec. 4e. No
person subject to tax under this act need
16 include in the amount
of his gross proceeds used for the
17 computation of the tax
a sale of tangible personal property to
18 any nonresident person
of Michigan actually serving in the United
19 States armed forces of
A sale of a vehicle from a
Michigan
20 retailer for titling and registration in his or her home state of
21 residency or domicile to a nonresident person of Michigan
22 actually serving in the United States armed forces is exempt from
23 the tax under this act. This
claim for exemption shall be
24 allowed only if at At the time of sale , or purchase, the
25 purchaser shall provide a
sworn statement is furnished to the
26 vendor from the immediate commanding officer of the purchaser
27 certifying that
the person purchaser claiming the exemption is
1 a member of the armed forces on active duty and furnishing the
2 recorded domiciliary or home address of the purchaser.
3 Sec. 4f. A
person subject to tax under this act may
4 exclude from gross
proceeds used for the computation of the tax
5 that portion of the
gross proceeds which represents commissions
6 Commissions paid to an entity exempt under the provisions of
7 section 4a , to the
extent that the gross proceeds are from
8 sales of tangible personal property dispensed through a
9 nonelectrically operated vending machine containing unsorted
10 confections, nuts, or merchandise which, upon insertion of a coin
11 dispenses the same in substantially equal portions, at random and
12 without selection by the customer, and where the consideration is
13 10 cents or less, are exempt from the tax under this act.
14 Sec. 4g. (1) A
person subject to tax under this act may
15 exclude from the
amount of the gross proceeds used for the
16 computation of the tax
1 or more of the The
following are exempt
17 from the tax under this act:
18 (a) Sales of prescription
drugs for human use that can only
19 be legally dispensed by prescription or food for human
20 consumption or food ingredients, except prepared food
intended
21 for immediate human consumption.
22 (b) The deposit on a returnable container for a beverage or
23 the deposit on a carton or case that is used for returnable
24 containers.
25 (c) Food or tangible
personal property purchased with under
26 the federal food stamps
stamp program or meals eligible to be
27 purchased under the federal food stamp program.
1 (d) Fruit or vegetable seeds and fruit or vegetable plants if
2 purchased at a place of business authorized to accept food stamps
3 by the food and nutrition service of the United States department
4 of agriculture or a place of business that has made a complete
5 and proper application for authorization to accept food stamps
6 but has been denied authorization and provides proof of denial to
7 the department of treasury.
8 (e) Live animals purchased with the intent to be slaughtered
9 for human consumption.
10 (2)
"Prescription drugs for human use" means insulin or a
11 drug dispensed by a
licensed pharmacist pursuant to a written
12 prescription
prescribed by a licensed physician or other health
13 professional as
defined by section 21005 of the public health
14 code, 1978 PA 368, MCL
333.21005, for the use of a designated
15 person, or oxygen
dispensed pursuant to a written prescription or
16 order issued by a
licensed physician or other health professional
17 as defined in section
21005 of the public health code, 1978
18 PA 368, MCL 333.21005.
19 (3) "Food for
human consumption" means all food and drink
20 items, including
bottled water, intended primarily for human
21 consumption except
beverages with an alcohol content of 1/2 of 1%
22 or more by volume,
tobacco and tobacco products, and prepared
23 food intended for
immediate consumption. Food for human
24 consumption includes
live animals purchased with the intent to be
25 slaughtered for human
consumption.
26 (4) "Prepared
food intended for immediate consumption" means
27 a retail sale of 1 or
more of the following:
1 (a) Food or drink
prepared and served for immediate
2 consumption at or near
the premises or ordinarily sold on a
3 takeout basis for
immediate consumption either on or off the
4 premises. For the
purposes of this section premises includes the
5 total space and
facilities in or on which a retailer conducts his
6 or her business,
including, but not limited to, parking areas for
7 the convenience of
in-car consumption, outdoor tables, benches,
8 chairs, and similar
conveniences.
9 (b) Food or drink
furnished, prepared, or served for
10 immediate consumption
at a table, chair, or counter or from a
11 tray, glass, dish,
container, or other tableware.
12 (c) Food or drink
arranged on a plate or platter, whether
13 intended for
individual or multiple servings and whether sold by
14 the pound or by the
serving; a sandwich, either hot or cold; or a
15 combination of taxable
and nontaxable items when sold as a plate
16 or packaged as a meal,
even though intended for more than 1
17 serving.
18 (d) Food that is
cooked to the order of the purchaser, or
19 that is cooked and
maintained at a temperature higher than the
20 surrounding air
temperature before sale, or prepared food that is
21 sold by the piece
rather than by weight or measure.
22 (2) (e) Food
or drink heated or cooled mechanically,
23 electrically, or by other artificial means to an average
24 temperature above 75 degrees Fahrenheit or below 65 degrees
25 Farenheit Fahrenheit before sale and sold from a mobile
26 facility or vending machine, except milk, nonalcoholic beverages
27 in a sealed container, and fresh fruit, is subject to the tax
1 under this act. A
refund shall not be made for any taxes paid
2 after December 31,
1994 and before January 16, 1997 for food or
3 drink otherwise exempt
under this subdivision. The tax due
under
4 this act on the sale of food or drink from a vending machine
5 selling both taxable items and items exempt under this subsection
6 shall be calculated under
this act after December 31, 1994
7 based on 1 of the following as determined by the taxpayer:
8 (a) (i) Actual
gross proceeds from sales at retail.
9 (b) (ii) Forty-five
percent of proceeds from the sale of
10 items subject to tax under this act or exempt from the tax levied
11 under this act, other than from the sale of carbonated
12 beverages.
13 (5) Prepared food
intended for immediate consumption does
14 not include bakery
products for off-premises consumption, such as
15 doughnuts, pastry,
bread, and cakes; meals eligible to be
16 purchased with federal
food stamps; or nonalcoholic beverages and
17 prepared food intended
for immediate consumption provided during
18 work hours for free or
at a reduced rate to employees of food
19 service establishments
licensed by the Michigan department of
20 agriculture. As used
in this subsection, "food service
21 establishment"
means that term as defined in section 1107 of the
22 food law of 2000, 2000
PA 92, MCL 289.1107.
23 (3) "Food and food ingredients" means substances, whether in
24 liquid, concentrated, solid, frozen, dried, or dehydrated form,
25 that are sold for ingestion or chewing by humans and are consumed
26 for their taste or nutritional value. Food and food ingredients
27 do not include alcoholic beverages and tobacco.
1 (4) "Prepared food" means the following:
2 (a) Food sold in a heated state or that is heated by the
3 seller.
4 (b) Two or more food ingredients mixed or combined by the
5 seller for sale as a single item.
6 (c) Food sold with eating utensils provided by the seller,
7 including knives, forks, spoons, glasses, cups, napkins, straws,
8 or plates, but not including a container or packaging used to
9 transport the food.
10 (5) Prepared food does not include the following:
11 (a) Food that is only cut, repackaged, or pasteurized by the
12 seller.
13 (b) Raw eggs, fish, meat, poultry, and foods containing those
14 raw items requiring cooking by the consumer in recommendations
15 contained in section 3-401.11 of part 3-4 of chapter 3 of the
16 2001 food code published by the food and drug administration of
17 the public health service of the department of health and human
18 services, to prevent foodborne illness.
19 (c) Food sold in an unheated state by weight or volume as a
20 single item, without eating utensils.
21 (d) Bakery items, including bread, rolls, buns, biscuits,
22 bagels, croissants, pastries, doughnuts, danish, cakes, tortes,
23 pies, tarts, muffins, bars, cookies, and tortillas, sold without
24 eating utensils.
25 (6) "Prepared food intended for immediate consumption" means
26 prepared food.
27 Sec. 4h. Sales to the United States, its unincorporated
1 agencies and instrumentalities, any incorporated agency or
2 instrumentality of the United States wholly owned by the United
3 States or by a corporation wholly owned by the United States, the
4 American Red Cross and its chapters and branches, and this state
5 or its departments and institutions or any of its political
6 subdivisions are exempt from the tax under this act.
7 Sec. 4i. (1) As used in this section, "bad debt" means any
8 portion of a debt that is related to a sale at retail taxable
9 under this act for which gross proceeds are not otherwise
10 deductible or excludable ,
that has become worthless or
11 uncollectible in the
time period between the date when taxes
12 accrue to the state
for the taxpayer's preceding sales tax return
13 and the date when
taxes accrue to the state for the present
14 return, and that is eligible to be claimed, or could be
eligible
15 to be claimed if the taxpayer kept accounts on an accrual basis,
16 as a deduction pursuant to section 166 of the internal revenue
17 code, 26 USC 166. A bad debt shall not include any finance
18 charge, interest, or sales tax on the purchase price,
19 uncollectible amounts on property that remains in the possession
20 of the taxpayer until the full purchase price is paid, expenses
21 incurred in attempting to collect any account receivable or any
22 portion of the debt recovered, any accounts receivable that have
23 been sold to and remain in the possession of a third party for
24 collection, and repossessed property.
25 (2) In computing the amount of tax levied under this act for
26 any month, a taxpayer may deduct the amount of bad debts from his
27 or her gross proceeds used for the computation of the tax. The
1 amount of gross proceeds deducted must be charged off as
2 uncollectible on the books and records of the taxpayer at the
3 time the debt becomes worthless and deducted on the return for
4 the period during which the bad debt is written off as
5 uncollectible in the claimant's books and records and must be
6 eligible to be deducted for federal income tax purposes. If the
7 business consists of
taxable and nontaxable transactions, the
8 deduction shall equal
the full amount of the bad debt if the bad
9 debt is documented as
a taxable transaction in the taxpayer's
10 records. If
documentation is not available, the maximum
11 deduction from gross
proceeds for any bad debt shall equal the
12 amount of the bad debt
multiplied by the quotient obtained by
13 dividing the sales
taxed pursuant to this act during the
14 preceding calendar
year by all sales during the preceding
15 calendar year, whether
or not taxed under this act. For
purposes
16 of this section, a claimant who is not required to file a federal
17 income tax return may deduct a bad debt on a return filed for the
18 period in which the bad debt becomes worthless and is written off
19 as uncollectible in the claimant's books and records and would be
20 eligible for a bad debt deduction for federal income tax purposes
21 if the claimant was required to file a federal income tax return.
22 If a consumer or other person pays all or part of a bad debt with
23 respect to which a taxpayer claimed a deduction under this
24 section, the taxpayer shall
be is liable for the amount of
25 taxes deducted in connection with that portion of the debt for
26 which payment is received and shall remit these taxes in his or
27 her next payment to the department. Any payments made on a bad
1 debt shall be applied proportionally first to the taxable price
2 of the property and the tax on the property and second to any
3 interest, service, or other charge.
4 (3) Any claim for a bad debt deduction under this section
5 shall be supported by that evidence required by the department.
6 The department shall review any change in the rate of taxation
7 applicable to any taxable sales by a taxpayer claiming a
8 deduction pursuant to this section and shall ensure that the
9 deduction on any bad debt does not result in the taxpayer
10 claiming the deduction recovering any more or less than the taxes
11 imposed on the sale that constitutes the bad debt.
12 (4) If a certified service provider assumed filing
13 responsibility under the streamlined sales and use tax
14 administration act, the certified service provider may claim, on
15 behalf of the taxpayer, any bad debt allowable to the taxpayer
16 and shall credit or refund that amount of bad debt allowed or
17 refunded to the taxpayer.
18 (5) If the books and records of a taxpayer under the
19 streamlined sales and use tax agreement that claims a bad debt
20 allowance support an allocation of the bad debts among member
21 states of that agreement, the taxpayer may allocate the bad
22 debts.
23 Sec. 4j. (1) A
person subject to tax under this act may
24 exclude from the gross
proceeds used for the computation of the
25 tax a A sale of tangible personal property to
the extent the
26 tangible personal
property is used in a qualified
business
27 activity of the purchaser is exempt from the tax under this act.
1 (2) As used in this section, "qualified business activity"
2 means that term as defined in the enterprise zone act, 1985 PA
3 224, MCL 125.2101 to 125.2123.
4 Sec. 4k. (1) A
person subject to tax under this act may
5 exclude from gross
proceeds used for the computation of the tax
6 sales of tangible
personal property if the The sale
of tangible
7 personal property that
is part of a drop shipment and is exempt
8 from the tax under this act if the taxpayer complies with the
9 requirements of subsection (3).
10 (2) As used in this section, "drop shipment" means the direct
11 delivery of tangible personal property to a purchaser in Michigan
12 by a person who has sold the property to another person not
13 licensed under this act but possessing a resale or exemption
14 certificate or other written evidence of exemption authorized by
15 another state, for resale to the Michigan purchaser.
16 (3) For each transaction for which an exemption is claimed
17 under subsection (1), the taxpayer shall provide, but not more
18 frequently than annually, any information required by the board
19 under the streamlined sales and use tax agreement in addition to
20 the following information in a form prescribed by the department
21 to the department:
annually in any reasonable form:
22 (a) The name, address, and, if readily available, the federal
23 taxpayer identification number of the person to whom the property
24 is sold for resale.
25 (b) The name, address, and, if readily available, the federal
26 taxpayer identification number of the person to whom the property
27 is shipped in Michigan.
1 (4) A sale at retail includes a drop shipment.
2 Sec. 4m. A
person subject to tax under this act may
3 exclude from gross
proceeds used for the computation of the tax
4 the A sale of rail freight or passenger cars,
locomotives or
5 other rolling stock, roadway machines and work equipment
6 primarily of a flanged wheel nature, accessories, attachments
7 including parts and materials used for repair, lubricants, or
8 fuel, used in rail operations is exempt from the tax under this
9 act. This exemption does not include vehicles licensed and
10 titled for use on public highways.
11 Sec. 4o. (1) A
person subject to tax under this act with
12 aggregate sales at
retail in the calendar year of less than
13 $5,000.00 and not
operating for profit who is a school, church,
14 hospital, parent
cooperative preschool, or nonprofit organization
15 with a tax exempt
status under section 4n(1)(a) or (b) may
16 exclude from the
proceeds used for the computation of the tax the
17 sales of tangible
personal property for fund-raising purposes.
18 The sale of tangible personal property for fund-raising purposes
19 by a school, church, hospital, parent cooperative preschool, or
20 nonprofit organization that has a tax exempt status under section
21 4q(1)(a) or (b) and that has aggregate sales at retail in the
22 calendar year of less than $5,000.00 are exempt from the tax
23 under this act.
24 (2) A club, association, auxiliary, or other organization
25 affiliated with a school, church, hospital, parent cooperative
26 preschool, or nonprofit organization with a tax exempt status
27 under section 4n(1)(a)
4q(1)(a) or (b) is not considered a
1 separate person for purposes of this exemption. As used in this
2 section, "school" means each elementary, middle, junior, or high
3 school site within a local school district that represents a
4 district attendance area as established by the board of the local
5 school district.
6 Sec. 4p. (1) A
person subject to tax under this act may
7 exclude from the gross
proceeds used for the computation of the
8 tax the A sale of tangible personal property purchased
by a
9 person engaged in the business of constructing, altering,
10 repairing, or improving real estate for others if the property is
11 to be affixed to or made a structural part of a sanctuary is
12 exempt from the tax under this act.
13 (2) As used in this section:
14 (a) "Regularly organized church or house of religious
15 worship" means a religious organization qualified under section
16 501(c)(3) of the internal
revenue code, of 1986 26 USC 501.
17 (b) "Sanctuary" means only that portion of a building that is
18 owned and occupied by a regularly organized church or house of
19 religious worship that is used predominantly and regularly for
20 public worship. Sanctuary includes a sanctuary to be constructed
21 that will be owned and occupied by a regularly organized church
22 or house of religious worship and that will be used predominantly
23 and regularly for public worship.
24 Sec. 4q. (1) A
person subject to the tax under this act
25 may exclude from the
gross proceeds used for the computation of
26 this tax, sales A sale of tangible personal property not for
27 resale to the following, subject to subsection (5), is exempt
1 from the tax under this act:
2 (a) A health, welfare, educational, cultural arts,
3 charitable, or benevolent organization not operated for profit
4 that has been issued an exemption ruling letter to purchase items
5 exempt from tax before the
effective date of this section July
6 17, 1998 signed by the administrator of the sales, use, and
7 withholding taxes division of the department.
8 (b) An organization not operated for profit and exempt from
9 federal income tax under section 501(c)(3) or 501(c)(4) of the
10 internal revenue code,
of 1986 26 USC 501.
11 (2) The exemptions provided for in subsection (1) do not
12 apply to sales of tangible personal property and sales of
13 vehicles licensed for use on public highways, that are not used
14 primarily to carry out the purposes of the organization as stated
15 in the bylaws or articles of incorporation of the exempt entity.
16 (3) At the time of the transfer of the tangible personal
17 property exempt under subsection (1), the transferee shall do 1
18 of the following:
19 (a) Present the exemption ruling letter signed by the
20 administrator of the sales, use, and withholding taxes division
21 of the department certifying that the property is to be used or
22 consumed in connection with the operation of the organization.
23 (b) Present a signed statement, on a form approved by the
24 department, stating that the property is to be used or consumed
25 in connection with the operation of the organization and that the
26 organization qualifies as an exempt organization under this
27 section. The transferee shall also provide to the transferor a
1 copy of the federal exemption letter.
2 (4) The letter provided under subsection (3)(a) and the
3 statement with the accompanying letter provided under subsection
4 (3)(b) shall be accepted by all courts as prima facie evidence of
5 the exemption and the statement shall provide that if the claim
6 for tax exemption is disallowed, the transferee will reimburse
7 the transferor for the amount of tax involved.
8 (5) The tangible personal property under subsection (1) is
9 exempt only to the extent that the property is used to carry out
10 the purposes of the organization as stated in the organization's
11 bylaws or articles of incorporation. The exemption is limited to
12 the percentage of exempt use to total use determined by a
13 reasonable formula or method approved by the department.
14 Sec. 4r. (1) A
person subject to tax under this act may
15 exclude from the
amount of the gross proceeds used for the
16 computation of the tax
1 or more All of the
following are exempt
17 from the tax under this act:
18 (a) The product of the out-of-state usage percentage and the
19 gross proceeds otherwise taxable under this act from the sale of
20 a qualified truck or a trailer designed to be drawn behind a
21 qualified truck, purchased after December 31, 1996 and before
22 May 1, 1999 by an interstate motor carrier and used in interstate
23 commerce.
24 (b) A sale of rolling stock purchased by an interstate motor
25 carrier or for rental or lease to an interstate motor carrier and
26 used in interstate commerce.
27 (2) As used in this section:
1 (a) "Interstate motor carrier" means a person engaged in the
2 business of carrying persons or property, other than themselves,
3 their employees, or their own property, for hire across state
4 lines, whose fleet mileage was driven at least 10% outside of
5 this state in the immediately preceding tax year.
6 (b) "Out-of-state usage percentage" is a fraction, the
7 numerator of which is the number of miles driven outside of this
8 state in the immediately preceding tax year by qualified trucks
9 used by the interstate motor carrier and the denominator of which
10 is the total miles driven in the immediately preceding tax year
11 by qualified trucks used by the interstate motor carrier. Miles
12 driven by qualified trucks used solely in intrastate commerce
13 shall not be included in calculating the out-of-state usage
14 percentage.
15 (c) "Qualified truck" means a commercial motor vehicle power
16 unit that has 2 axles and a gross vehicle weight rating in excess
17 of 10,000 pounds or a commercial motor vehicle power unit that
18 has 3 or more axles.
19 (d) "Rolling stock" means a qualified truck, a trailer
20 designed to be drawn behind a qualified truck, and parts affixed
21 to either a qualified truck or a trailer designed to be drawn
22 behind a qualified truck.
23 Sec. 4s. (1) A person
subject to tax under this act may
24 exclude from the gross
proceeds used for the computation of this
25 tax the sale of investment coins and bullion is exempt
from the
26 tax under this act.
27 (2) As used in this section:
1 (a) "Bullion" means gold, silver, or platinum in a bulk
2 state, where its value depends on its content rather than its
3 form, with a purity of not less than 900 parts per 1,000.
4 (b) "Investment coins" means numismatic coins or other forms
5 of money and legal tender manufactured of gold, silver, platinum,
6 palladium, or other metal and issued by the United States
7 government or a foreign government with a fair market value
8 greater than the face value of the coins.
9 Sec. 4t. (1) A
person subject to the tax under this act
10 may exclude from the
gross proceeds used for the computation of
11 the tax the The sale of tangible personal property to the
12 following after March 30, 1999, subject to subsection (2) are
13 exempt from the tax under this act:
14 (a) An industrial processor for use or consumption in
15 industrial processing.
16 (b) A person, whether or not the person is an industrial
17 processor, if the tangible personal property is intended for
18 ultimate use in and is used in industrial processing by an
19 industrial processor.
20 (c) A person, whether or not the person is an industrial
21 processor, if the tangible personal property is used by that
22 person to perform an industrial processing activity for or on
23 behalf of an industrial processor.
24 (d) A person, whether or not the person is an industrial
25 processor, if the tangible personal property is 1 of the
26 following:
27 (i) A computer used in operating industrial processing
1 equipment.
2 (ii) Equipment used in a computer assisted manufacturing
3 system.
4 (iii) Equipment used in a computer assisted design or
5 engineering system integral to an industrial process.
6 (iv) A subunit or electronic assembly comprising a component
7 in a computer integrated industrial processing system.
8 (v) Computer equipment used in connection with the computer
9 assisted production, storage, and transmission of data if the
10 equipment would have been exempt had the data transfer been made
11 using tapes, disks, CD-ROMs, or similar media by a company whose
12 business includes publishing doctoral dissertations and
13 information archiving, and that sells the majority of the
14 company's products to nonprofit organizations exempt under
15 section 4q.
16 (vi) Equipment used in the production of prewritten computer
17 software that is
offered for general sale to the public or
18 software modified or adapted to the user's needs or equipment by
19 the seller, only if the software is available for sale from a
20 seller of software on an as-is basis or as an end product without
21 modification or adaption
adaptation.
22 (2) The property under subsection (1) is exempt only to the
23 extent that the property is used for the exempt purpose stated in
24 this section. The exemption is limited to the percentage of
25 exempt use to total use determined by a reasonable formula or
26 method approved by the department.
27 (3) Industrial processing includes the following activities:
1 (a) Production or assembly.
2 (b) Research or experimental activities.
3 (c) Engineering related to industrial processing.
4 (d) Inspection, quality control, or testing to determine
5 whether particular units of materials or products or processes
6 conform to specified parameters at any time before materials or
7 products first come to rest in finished goods inventory storage.
8 (e) Planning, scheduling, supervision, or control of
9 production or other exempt activities.
10 (f) Design, construction, or maintenance of production or
11 other exempt machinery, equipment, and tooling.
12 (g) Remanufacturing.
13 (h) Processing of production scrap and waste up to the point
14 it is stored for removal from the plant of origin.
15 (i) Recycling of used materials for ultimate sale at retail
16 or reuse.
17 (j) Production material handling.
18 (k) Storage of in-process materials.
19 (4) Property that is eligible for an industrial processing
20 exemption includes the following:
21 (a) Property that becomes an ingredient or component part of
22 the finished product to be sold ultimately at retail.
23 (b) Machinery, equipment, tools, dies, patterns, foundations
24 for machinery or equipment, or other processing equipment used in
25 an industrial processing activity and in their repair and
26 maintenance.
27 (c) Property that is consumed or destroyed or that loses its
1 identity in an industrial processing activity.
2 (d) Tangible personal property, not permanently affixed and
3 not becoming a structural part of real estate, that becomes a
4 part of, or is used and consumed in installation and maintenance
5 of, systems used for an industrial processing activity.
6 (e) Fuel or energy used or consumed for an industrial
7 processing activity.
8 (f) Machinery, equipment, or materials used within a plant
9 site or between plant sites operated by the same person for
10 movement of tangible personal property in the process of
11 production.
12 (g) Office equipment, including data processing equipment,
13 used for an industrial processing activity.
14 (5) Property that is not eligible for an industrial
15 processing exemption includes the following:
16 (a) Tangible personal property permanently affixed and
17 becoming a structural part of real estate including building
18 utility systems such as heating, air conditioning, ventilating,
19 plumbing, lighting, and electrical distribution, to the point of
20 the last transformer, switch, valve, or other device at which
21 point usable power, water, gas, steam, or air is diverted from
22 distribution circuits for use in industrial processing.
23 (b) Office equipment, including data processing equipment
24 used for nonindustrial processing purposes.
25 (c) Office furniture or office supplies.
26 (d) An industrial processor's own product or finished good
27 that it uses or consumes for purposes other than industrial
1 processing.
2 (e) Tangible personal property used for receiving and storage
3 of materials, supplies, parts, or components purchased by the
4 user or consumer.
5 (f) Tangible personal property used for receiving or storage
6 of natural resources extracted by the user or consumer.
7 (g) Vehicles, including special bodies or attachments,
8 required to display a vehicle permit or license plate to operate
9 on public highways, except for a vehicle bearing a manufacturer's
10 plate or a specially designed vehicle, together with parts, used
11 to mix and agitate materials at a plant or job site in the
12 concrete manufacturing process.
13 (h) Tangible personal property used for the preparation of
14 food or beverages by a retailer for ultimate sale at retail
15 through its own locations.
16 (i) Tangible personal property used or consumed for the
17 preservation or maintenance of a finished good once it first
18 comes to rest in finished goods inventory storage.
19 (j) Returnable shipping containers or materials, except as
20 provided in subsection (4)(f).
21 (k) Tangible personal property used in the production of
22 computer software originally designed for the exclusive use and
23 special needs of the purchaser.
24 (6) Industrial processing does not include the following
25 activities:
26 (a) Purchasing, receiving, or storage of raw materials.
27 (b) Sales, distribution, warehousing, shipping, or
1 advertising activities.
2 (c) Administrative, accounting, or personnel services.
3 (d) Design, engineering, construction, or maintenance of real
4 property and nonprocessing equipment.
5 (e) Plant security, fire prevention, or medical or hospital
6 services.
7 (7) As used in this section:
8 (a) "Industrial processing" means the activity of converting
9 or conditioning tangible personal property by changing the form,
10 composition, quality, combination, or character of the property
11 for ultimate sale at retail or for use in the manufacturing of a
12 product to be ultimately sold at retail. Industrial processing
13 begins when tangible personal property begins movement from raw
14 materials storage to begin industrial processing and ends when
15 finished goods first come to rest in finished goods inventory
16 storage.
17 (b) "Industrial processor" means a person who performs the
18 activity of converting or conditioning tangible personal property
19 for ultimate sale at retail or use in the manufacturing of a
20 product to be ultimately sold at retail.
21 (c) "Product", as used in subdivision (e), includes but is
22 not limited to a prototype, pilot model, process, formula,
23 invention, technique, patent, or similar property, whether
24 intended to be used in a trade or business or to be sold,
25 transferred, leased, or licensed.
26 (d) "Remanufacturing" means the activity of overhauling,
27 retrofitting, fabricating, or repairing a product or its
1 component parts for ultimate sale at retail.
2 (e) "Research or experimental activity" means activity
3 incident to the development, discovery, or modification of a
4 product or a product related process. Research or experimental
5 activity also includes activity necessary for a product to
6 satisfy a government standard or to receive government approval.
7 Research or experimental activity does not include the
8 following:
9 (i) Ordinary testing or inspection of materials or products
10 for quality control purposes.
11 (ii) Efficiency surveys.
12 (iii) Management surveys.
13 (iv) Market or consumer surveys.
14 (v) Advertising or promotions.
15 (vi) Research in connection with literacy, historical, or
16 similar projects.
17 Sec. 4u. (1) A person
subject to the tax under this act
18 may exclude from the
gross proceeds used for the computation of
19 the tax the sale of tangible personal property to an extractive
20 operator for use or consumption in extractive operations is
21 exempt from the tax under this act.
22 (2) The property under subsection (1) is exempt only to the
23 extent that the property is used for the exempt purposes stated
24 in this section. The exemption is limited to the percentage of
25 exempt use to total use determined by a reasonable formula or
26 method approved by the department.
27 (3) Extractive operations include the actual production of
1 oil, gas, brine, or other natural resources. Property eligible
2 for the exemption includes the following:
3 (a) Casing pipe or drive pipe.
4 (b) Tubing.
5 (c) Well-pumping equipment.
6 (d) Chemicals.
7 (e) Explosives or acids used in fracturing, acidizing, or
8 shooting wells.
9 (f) Christmas trees, derricks, or other wellhead equipment.
10 (g) Treatment tanks.
11 (h) Piping, valves, or pumps used before movement or
12 transportation of the natural resource from the production area.
13 (i) Chemicals or acids used in the treatment of crude oil,
14 gas, brine, or other natural resources.
15 (j) Tangible personal property used or consumed in depositing
16 tailings from hard rock mining processing.
17 (k) Tangible personal property used or consumed in extracting
18 the lithologic units necessary to process iron ore.
19 (4) The extractive operation exemption does not include the
20 following:
21 (a) Tangible personal property consumed or used in the
22 construction, alteration, improvement, or repair of buildings,
23 storage tanks, and storage and housing facilities.
24 (b) Tangible personal property consumed or used in
25 transporting the product from the place of extraction, except for
26 tangible personal property consumed or used in transporting
27 extracted materials from the extraction site to the place where
1 the extracted materials first come to rest in finished goods
2 inventory storage.
3 (c) Tangible personal property that is a product the
4 extractive operator produces and that is consumed or used by the
5 extractive operator for a purpose other than the manufacturing or
6 producing of a product for ultimate sale. The extractor shall
7 account for and remit the
tax to the this state based upon the
8 product's fair market value.
9 (d) Equipment, materials, and supplies used in exploring,
10 prospecting, or drilling for oil, gas, brine, or other natural
11 resources.
12 (e) Equipment, materials, and supplies used in the storing,
13 withdrawing, or distribution of oil, gas, or brine from a storage
14 facility.
15 (f) Vehicles, including special bodies or attachments,
16 required to display a vehicle permit or license plate to operate
17 on public highways.
18 (5) As used in this section:
19 (a) "Extractive operations" means the activity of taking or
20 extracting for resale ore, oil, gas, coal, timber, stone, gravel,
21 clay, minerals, or other natural resource material. An
22 extractive operation begins when contact is made with the actual
23 type of natural raw product being recovered. Extractive
24 operation includes all necessary processing operations before
25 shipment from the place of extraction. Extractive operations
26 includes all necessary processing operations and movement of the
27 natural resource material until the point at which the natural
1 raw product being recovered first comes to rest in finished goods
2 inventory storage at the extraction site.
3 (b) An extractive operator is a person who, either directly
4 or by contract, performs extractive operations.
5 Sec. 4w. (1) For taxes levied after June 30, 1999, a
6 person subject to the
tax under this act may exclude from the
7 gross proceeds used
for the computation of the tax the sale
of
8 tangible personal property to a person directly engaged in the
9 business of constructing, altering, repairing, or improving real
10 estate for others to the extent that the property is affixed to
11 and made a structural part of a nonprofit hospital or a nonprofit
12 housing entity qualified as exempt under section 15a of the state
13 housing development authority act of 1966, 1966 PA 346,
14 MCL 125.1415a, is exempt from the tax under this act.
15 (2) An exemption shall not be granted under this section for
16 any portion of property otherwise qualifying for exemption under
17 this section if income or a benefit inures directly or indirectly
18 to an individual, private stockholder, or other private person
19 from the independent or nonessential operation of that portion of
20 property.
21 (3) As used in this section:
22 (a) "Nonprofit hospital" means 1 of the following:
23 (i) That portion of a building to which 1 of the following
24 applies:
25 (A) Is owned or operated by an entity exempt under section
26 501(c)(3) of the internal
revenue code, of 1986 26 USC 501,
27 that is licensed as a hospital under part 215 of the public
1 health code, 1978 PA 368, MCL 333.21501 to 333.21568.
2 (B) Is owned or operated by a governmental unit in which
3 medical attention is provided.
4 (C) Is owned or operated by an entity or entities exempt
5 under section 501(c)(2)
or (3) of the internal revenue code, of
6 1986 26 USC 501, in which medical attention is
provided.
7 (ii) That portion of real property necessary and related to a
8 building described in subparagraph (i) in which medical attention
9 is provided.
10 (iii) A county long-term medical care facility built after
11 December 31, 1995.
12 (b) "Nonprofit hospital" does not include the following:
13 (i) A freestanding building or other real property of a
14 nursing home or skilled nursing facility licensed under part 217
15 of the public health code, 1978 PA 368, MCL 333.21701 to
16 333.21799e.
17 (ii) A hospice licensed under part 214 of the public health
18 code, 1978 PA 368, MCL 333.21401 to 333.21421.
19 (iii) A home for the aged licensed under part 213 of the
20 public health code, 1978 PA 368, MCL 333.21301 to 333.21333.
21 (c) "Medical attention" means that level of medical care in
22 which a physician provides acute care or active treatment of
23 medical, surgical, obstetrical, psychiatric, chronic, or
24 rehabilitative conditions, that require the observation,
25 diagnosis, and daily treatment by a physician.
26 Sec. 4x. (1) A person
subject to the tax under this act
27 may exclude from the
gross proceeds used for the computation of
1 this tax sales sale to a domestic air carrier of 1 or more of
2 the following is exempt from the tax under this act:
3 (a) An aircraft that has a maximum certificated takeoff
4 weight of at least 6,000 pounds for use solely in the transport
5 of air cargo, passengers, or a combination of air cargo and
6 passengers.
7 (b) Parts and materials, excluding shop equipment or fuel,
8 affixed or to be affixed to an aircraft that has a maximum
9 certificated takeoff weight of at least 6,000 pounds for use
10 solely in the transport of air cargo, passengers, or a
11 combination of air cargo and passengers.
12 (2) A person
subject to the tax under this act may exclude
13 from the gross
proceeds used for the computation of this tax
14 sales sale of an aircraft to a person for subsequent
lease to a
15 domestic air carrier operating under a certificate issued by the
16 federal aviation
administration under 14 C.F.R. 121 14 CFR 121,
17 for use solely in the regularly scheduled transport of passengers
18 is exempt from the tax under this act.
19 (3) As used in this section, "domestic air carrier" is
20 limited to entities engaged primarily in the commercial transport
21 for hire of air cargo, passengers, or a combination of air cargo
22 and passengers as a business activity.
23 Sec. 5b. (1) Notwithstanding
the provisions of section 2,
24 the The organizing entity of a qualified athletic
event that
25 sells corporate sponsor contracts for the event that include both
26 taxable tangible personal
property and nontaxable services may
27 apply the tax only to
the amount charged for the sale of exempt
1 the retail sale of the taxable tangible personal property if all
2 of the following criteria have been met:
3 (a) The organizing entity is exempt or is wholly owned by an
4 entity exempt under section 501(c)(6) of the internal revenue
5 code, of 1986 26
USC 501.
6 (b) The organizing entity provided both of the following to
7 the department at least 180 days in advance of entering into the
8 first corporate sponsor contract:
9 (i) Written notice of its intent to enter into corporate
10 sponsor contracts.
11 (ii) An itemized schedule of the taxable tangible
personal
12 property and nontaxable
services that will be provided under
13 each corporate sponsor contract.
14 (c) The department has given written approval to the
15 organizing entity's
allocation of the tax among taxable tangible
16 personal property and
nontaxable services entity.
17 (2) As used in this section, "qualified athletic event" means
18 either of the following:
19 (a) A professional sporting competition in which individuals
20 officially representing at least 2 countries or nations compete.
21 (b) A professional football competition in which teams
22 compete in a postseason event to determine the league champion.
23 (3) This section is repealed effective January 1, 2007.
24 Sec. 6. (1) Each taxpayer, unless otherwise provided by law
25 or as required pursuant
to subsection (2), (3), (5), or (6)
26 (4), or (5), on or before
the fifteenth twentieth day of each
27 month shall make out a return for the preceding month on a form
1 prescribed by the department showing the entire amount of all
2 sales and gross proceeds of his or her business, the allowable
3 deductions, and the amount of tax for which he or she is liable.
4 The taxpayer shall also transmit the return, together with a
5 remittance for the amount of the tax, to the department on or
6 before the fifteenth twentieth
day of that month. The monthly
7 return shall be signed
by the taxpayer or his or her duly
8 authorized agent and,
if prepared for the taxpayer by any other
9 person, the return
shall so state, give the name and address of
10 that person, be signed
by that person, and give the name of that
11 person's employer, if
any.
12 (2) Before
January 1, 1999, each taxpayer that had a total
13 tax liability, after
subtracting the tax payments made to the
14 secretary of state
under this act or the use tax act, 1937 PA 94,
15 MCL 205.91 to 205.111,
or after subtracting the tax credits
16 available under section
6a, in the immediately preceding calendar
17 year of $720,000.00 or
more on or before the eighteenth of each
18 month shall remit to
the department, by an electronic funds
19 transfer method
approved by the commissioner of revenue, an
20 amount equal to 95% of
the taxpayer's liability under this act
21 for the same month in
the immediately preceding calendar year, or
22 95% of the actual
liability for the current month being reported,
23 plus a reconciliation
payment equal to the difference between the
24 tax liability
determined for the immediately preceding month
25 minus the amount of
tax previously paid for that month.
26 (2) (3) Beginning
January 1, 1999, each taxpayer that had a
27 total tax liability after subtracting the tax payments made to
1 the secretary of state under this act or the use tax act, 1937
2 PA 94, MCL 205.91 to 205.111, or after subtracting the tax
3 credits available under section 6a, in the immediately preceding
4 calendar year of $720,000.00 or more shall remit to the
5 department, by an electronic funds transfer method approved by
6 the commissioner of
revenue department on or before the
7 fifteenth twentieth day of the month, an amount equal to
50% of
8 the taxpayer's liability under this act for the same month in the
9 immediately preceding calendar year, or 50% of the actual
10 liability for the month being reported, whichever is less, plus a
11 reconciliation payment equal to the difference between the tax
12 liability determined for the immediately preceding month minus
13 the amount of tax previously paid for that month. Additionally,
14 the seller shall remit to the department, by an electronic funds
15 transfer method approved
by the commissioner of revenue
16 department on or before the last day of the month, an amount
17 equal to 50% of the taxpayer's liability under this act for the
18 same month in the immediately preceding calendar year, or 50% of
19 the actual liability for the month being reported, whichever is
20 less.
21 (3) (4) The
tax imposed under this act shall accrue to
22 the this state on the last day of the month in
which the sale
23 is incurred.
24 (4) (5) The
commissioner of revenue department, when if
25 necessary to insure payment of the tax or to provide a more
26 efficient administration, may require the filing of returns and
27 payment of the tax for other than monthly periods.
1 (5) (6) A
taxpayer who is a materialperson may at the
2 option of the taxpayer include the amount of all taxable sales
3 and gross proceeds from materials furnished to an owner,
4 contractor, subcontractor, repairperson, or consumer on a credit
5 sale basis for the purpose of making an improvement to real
6 property in his or her return in the first quarterly return due
7 following the date in which the materialperson made the credit
8 sale to the owner, contractor, subcontractor, repairperson, or
9 consumer.
Notwithstanding subsections (1) through (4) (3), a
10 materialperson may at the option of the taxpayer file quarterly
11 returns for a credit sale only as determined by the department.
12 As used in this subsection, "credit sale" means an extension of
13 credit for the sale of taxable goods by a seller other than a
14 credit card sale; and "materialperson" means a person who
15 provides materials for the improvement of real property, who has
16 registered with and has demonstrated to the department that he or
17 she is primarily engaged in the sale of lumber and building
18 material related products to owners, contractors, subcontractors,
19 repairpersons, or consumers, and who is authorized to file a
20 construction lien upon real property and improvements under the
21 construction lien act, 1980 PA 497, MCL 570.1101 to 570.1305.
22 (6) If a due date falls on a Saturday, Sunday, state holiday,
23 or legal banking holiday, the taxes are due on the next
24 succeeding business day.
25 Sec. 6b. A taxpayer may claim a credit or refund for
26 returned goods or a refund less an allowance for use made for a
27 motor vehicle returned under 1986 PA 87, MCL 257.1401 to
1 257.1410, as certified by the manufacturer on a form provided by
2 the department.
3 Sec. 8. Consolidated
returns. Any person engaging in 2 or
4 more places in the same business or businesses taxable under this
5 act, shall file a
consolidated return covering all such the
6 business activities
engaged in within this state. and shall be
7 entitled to deduct 1
exemption only in the amount of $50.00 per
8 month as allowed in
section 4.
9 Sec. 9. (1) The tax imposed by this act shall be
10 administered by the commissioner
department pursuant to 1941 PA
11 122, MCL 205.1 to 205.31, the streamlined sales and use tax
12 administration act, and
this act. In case of conflict between
13 If the provisions of 1941 PA 122, MCL 205.1 to 205.31, the
14 streamlined sales and use tax administration act, and this act
15 conflict, the provisions
of this act shall prevail apply.
16 (2) The department shall promulgate rules to implement this
17 act pursuant to the administrative procedures act of 1969, 1969
18 PA 306, MCL 24.201 to 24.328.
19 (3) A claim for a
refund under the 1991 amendatory act
20 amending section 4a to
provide for the exemption of subsurface
21 irrigation pipe shall
be filed not later than September 30,
22 1991. The approved
refunds shall be paid without interest.
23 (4) A claim for a
refund for the exemption provided by the
24 1998 amendatory act
that added subdivision (q) to section 4a
25 shall be filed not
later than 90 days after the effective date of
26 the amendatory act
that added this subsection.
27 Sec. 10. (1) If a taxpayer refunds or provides a credit for
1 all or a portion of the amount of the purchase price of returned
2 tangible personal property within the time period for returns
3 stated in the taxpayer's refund policy or 180 days after the
4 initial sale, whichever is sooner, the taxpayer shall also refund
5 or provide a credit for the tax levied under this act that the
6 taxpayer added to all or that portion of the amount of the
7 purchase price that is refunded or credited.
8 (2) A cause of action against a seller for overcollected
9 sales or use taxes does not accrue until a purchaser has provided
10 written notice to a seller and the seller has had 60 days to
11 respond. The purchaser shall provide in the notice sufficient
12 information to determine the validity of the request. In matters
13 relating to the request, a seller is presumed to have a
14 reasonable business practice if in the collection of sales and
15 use tax, the seller has a certified service provider or a system,
16 including a proprietary system, certified by the department and
17 has remitted to this state all taxes collected less any
18 deductions, credits, or collection allowances.
19 (3) (2) If
a taxpayer tenders an amount to a buyer under
20 section 10a of the
pricing and advertising of consumer items
21 act, 1976 PA 449, MCL 445.360a, the taxpayer shall refund
the
22 tax levied under this act on the difference between the price
23 stamped or affixed to the item and the price charged.
24 Sec. 11. In a taxable sale at retail of a motor vehicle
25 where another motor vehicle is used as partial payment of the
26 purchase price, the value of the motor vehicle used as partial
27 payment is that value agreed to by the parties to the sale as
1 evidenced by the signed statement executed under section 251 of
2 the Michigan vehicle code, 1949 PA 300, MCL 257.251.
3 Sec. 12. (1) If an exemption from the tax under this act is
4 claimed, the seller shall obtain identifying information of the
5 purchaser and the reason for claiming the exemption at the time
6 of the purchase or at a later date. The seller shall obtain the
7 same information for a claimed exemption regardless of the medium
8 in which the transaction occurred.
9 (2) A seller shall use a standard format for claiming an
10 exemption electronically as adopted by the governing board under
11 the streamlined sales and use tax agreement.
12 (3) A purchaser is not required to provide a signature to
13 claim an exemption under this act unless a paper exemption form
14 is used.
15 (4) A seller shall maintain a proper record of all exempt
16 transactions and shall provide the record if requested by the
17 department.
18 (5) A seller who complies with the requirements of this
19 section is not liable for the tax if a purchaser improperly
20 claims an exemption. A purchaser who improperly claims an
21 exemption is liable for the tax due under this act. This
22 subsection does not apply if a seller fraudulently fails to
23 collect the tax or solicits a purchaser to make an improper claim
24 for exemption.
25 Sec. 17. (1) A person liable for any tax imposed under this
26 act shall keep accurate and complete beginning and annual
27 inventory and purchase records of additions to inventory,
1 complete daily sales records, receipts, invoices, bills of
2 lading, and all pertinent documents in a form the department
3 requires. If an exemption from sales tax is claimed because the
4 sale is for resale or for any of the other exemptions or
5 deductions granted under this act, a record shall be kept of the
6 name and address of the person to whom the sale is made, the date
7 of the sale, the article purchased, the type of exemption
8 claimed, the amount of the sale, and, if that person has a sales
9 tax license, the sales tax license number. If a taxpayer
10 maintains the records required under this section, and accepts an
11 exemption certificate from the buyer in good faith on a form
12 prescribed by the department, the taxpayer is not liable for
13 collection of the unpaid tax after a finding that the sale did
14 not qualify for exemption under this act. As used in this
15 section, "good faith" means that the taxpayer received a
16 completed and signed exemption certificate from the buyer. A
17 person knowingly making a sale of tangible personal property for
18 the purpose of resale at retail to another person not licensed
19 under this act is liable for the tax imposed under this act
20 unless the transaction is exempt under the provisions of section
21 4k. These records must be retained for a period of 4 years after
22 the tax imposed under this act to which the records apply is due
23 or as otherwise provided by law. If the department considers it
24 necessary, the department may require a person, by notice served
25 upon that person, to make a return, render under oath certain
26 statements, or keep certain records the department considers
27 sufficient to show whether or not that person is liable for tax
1 under this act. If the taxpayer fails to file a return or to
2 maintain or preserve proper records as prescribed in this
3 section, or the department has reason to believe that any records
4 maintained or returns filed are inaccurate or incomplete and that
5 additional taxes are due, the department may assess the amount of
6 the tax due from the taxpayer based on information that is
7 available or that may become available to the department. That
8 assessment is considered prima facie correct for the purpose of
9 this act and the burden of proof of refuting the assessment is
10 upon the taxpayer. For purposes of this section, exemption
11 certificate includes a blanket exemption certificate on a form
12 prescribed by the department that covers all exempt transfers
13 between the taxpayer and the buyer for a period of 4 years or for
14 a period of less than 4 years as stated on the blanket exemption
15 certificate if that period is agreed to by the buyer and
16 taxpayer.
17 (2) For a period of not less than 30 days or more than 60
18 days that ends before September 1, 2000, as designated by the
19 department, a person liable for any tax imposed under this act is
20 exempt from the good faith requirement described in subsection
21 (1) if that person submits to the department copies of all sales
22 tax exemption certificates from buyers described in subsection
23 (1).
24 (3) A buyer eligible to claim any of the exemptions or
25 deductions granted under this act shall register on a form
26 prescribed by the department. If a buyer fails to satisfy the
27 registration requirement 6 months after either notice to register
1 from the department or becoming eligible to claim an exemption or
2 deduction under this act, whichever is later, the buyer is not
3 entitled to submit an exemption certificate claiming an exemption
4 or deduction otherwise granted by this act until the buyer
5 registers. After the department has issued a notice to register,
6 a nonregistered buyer shall be allowed to claim exemption in a
7 refund claim that is filed with the department within the time
8 permitted under section 27a of 1941 PA 122, MCL 205.27a.
9 (4) If all information described in subsection (1) is
10 otherwise maintained in routine business records, the good faith
11 exemption certificate requirement in subsection (1) does not
12 apply to the following:
13 (a) A person licensed by the Michigan liquor control
14 commission as a wholesaler for purposes of sales of alcoholic
15 liquor to another person licensed by the Michigan liquor control
16 commission. As used in this subsection, "alcoholic liquor",
17 "authorized distribution agent", and "wholesaler" mean those
18 terms as defined in the Michigan liquor control code of 1998,
19 1998 PA 58, MCL 436.1101 to 436.2303.
20 (b) The Michigan liquor control commission or a person
21 certified by the commission as an authorized distribution agent
22 for purposes of the sale and distribution of alcoholic liquor to
23 a person licensed by the Michigan liquor control commission.
24 (5) This section does not apply if this state becomes a
25 member of the streamlined sales and use tax agreement.
26 Sec. 18. (1) A person liable for any tax imposed under this
27 act shall keep accurate and complete beginning and annual
1 inventory and purchase records of additions to inventory,
2 complete daily sales records, receipts, invoices, bills of
3 lading, and all pertinent documents in a form the department
4 requires. If an exemption from the tax under this act is claimed
5 by a person because the sale is for resale at retail, a record
6 shall be kept of the sales tax license number if the person has a
7 sales tax license. These records shall be retained for a period
8 of 4 years after the tax imposed under this act to which the
9 records apply is due or as otherwise provided by law.
10 (2) If the department considers it necessary, the department
11 may require a person, by notice served upon that person, to make
12 a return, render under oath certain statements, or keep certain
13 records the department considers sufficient to show whether or
14 not that person is liable for the tax under this act.
15 (3) A person knowingly making a sale of tangible personal
16 property for the purpose of resale at retail to another person
17 not licensed under this act is liable for the tax under this act
18 unless the transaction is exempt under the provisions of section
19 4k.
20 (4) If the taxpayer fails to file a return or to maintain or
21 preserve proper records as prescribed in this section, or the
22 department has reason to believe that any records maintained or
23 returns filed are inaccurate or incomplete and that additional
24 taxes are due, the department may assess the amount of the tax
25 due from the taxpayer based on information that is available or
26 that may become available to the department. That assessment is
27 considered prima facie correct for the purpose of this act and
1 the burden of proof of refuting the assessment is upon the
2 taxpayer.
3 (5) If all the information is maintained as provided under
4 section 12, an exemption certificate is not required for an
5 exemption claim by the following:
6 (a) A person licensed by the Michigan liquor control
7 commission as a wholesaler for purposes of sales of alcoholic
8 liquor to another person licensed by the Michigan liquor control
9 commission. As used in this subsection, "alcoholic liquor",
10 "authorized distribution agent", and "wholesaler" mean those
11 terms as defined in the Michigan liquor control code of 1998,
12 1998 PA 58, MCL 436.1101 to 436.2303.
13 (b) The Michigan liquor control commission or a person
14 certified by the commission as an authorized distribution agent
15 for purposes of the sale and distribution of alcoholic liquor to
16 a person licensed by the Michigan liquor control commission.
17 (6) For purposes of this act, a blanket exemption claim
18 covers all exempt transfers between the taxpayer and the buyer
19 for a period of 4 years or for a period of less than 4 years as
20 stated on the blanket exemption claim if that period is agreed to
21 by the buyer and taxpayer.
22 (7) This section applies if this state is a member state of
23 the streamlined sales and use tax agreement.
24 Sec. 19. (1) For sourcing a sale at retail for taxation
25 under this act, the following apply:
26 (a) If a product is received by the purchaser at a business
27 location of the seller, the sale is sourced to that business
1 location.
2 (b) If a product is not received by the purchaser at a
3 business location of the seller, the sale is sourced to the
4 location where the product is received by the purchaser or the
5 purchaser's designee, including the location indicated by
6 instructions for delivery to the purchaser, known to the seller.
7 (c) If subdivision (a) or (b) does not apply, the sale is
8 sourced to the location indicated by an address for the purchaser
9 available from the seller's business records maintained in the
10 ordinary course of the seller's business, provided use of the
11 address does not constitute bad faith.
12 (d) If subdivisions (a) through (c) do not apply, the sale is
13 sourced to the location indicated by an address for the purchaser
14 obtained at the completion of the sale, including the address of
15 the purchaser's payment instrument if no other address is
16 available, provided use of the address does not constitute bad
17 faith.
18 (e) If subdivisions (a) through (d) do not apply or the
19 seller has insufficient information to apply subdivisions (a)
20 through (d), the sale will be sourced to the location indicated
21 by the address from which the tangible personal property was
22 shipped or from which the computer software delivered
23 electronically was first available for transmission by the
24 seller.
25 (2) For sourcing the lease or rental of tangible personal
26 property, other than property included in subsection (3) or (4),
27 for taxation under this act, the following apply:
1 (a) For a lease or rental requiring recurring periodic
2 payments, the first payment is sourced in the same manner
3 provided for a retail sale in subsection (1). Subsequent
4 payments shall be sourced to the primary property location for
5 each period covered by the payment as indicated by the address of
6 the property provided by the lessee and available to the lessor
7 from the lessor's records maintained in the ordinary course of
8 business, when use of this address does not constitute bad
9 faith. The property location is not considered altered by
10 intermittent use at different locations such as business property
11 that accompanies employees on business trips or service calls.
12 (b) For a lease or rental not requiring recurring periodic
13 payments, the payment is sourced in the same manner provided for
14 a retail sale in subsection (1).
15 (3) For sourcing the lease or rental of motor vehicles,
16 trailers, semitrailers, or aircraft that are not transportation
17 equipment, the following apply:
18 (a) For a lease or rental requiring recurring periodic
19 payments, each payment is sourced to the primary property
20 location as indicated by the address of the property provided by
21 the lessee and available to the lessor from the lessor's records
22 maintained in the ordinary course of business, when use of this
23 address does not constitute bad faith. The property location is
24 not considered altered by intermittent use at a different
25 location.
26 (b) For a lease or rental not requiring recurring periodic
27 payments, the payment is sourced in the same manner provided for
1 a retail sale in subsection (1).
2 (4) The lease or rental of transportation equipment shall be
3 sourced in the same manner provided for a retail sale in
4 subsection (1).
5 (5) Subsections (2) and (3) do not affect the imposition or
6 computation of sales tax on leases or rentals based on a lump-sum
7 or accelerated basis or on the acquisition of property for
8 lease.
9 (6) As used in this section:
10 (a) "Receive" and "receipt" mean 1 or more of the following
11 but exclude possession by a shipping company on behalf of the
12 purchaser:
13 (i) Taking possession of tangible personal property.
14 (ii) Making first use of services.
15 (b) "Transportation equipment" means 1 or more of the
16 following:
17 (i) Locomotives and railcars utilized for the carriage of
18 persons or property in interstate commerce.
19 (ii) Trucks and truck-tractors with a gross vehicle weight
20 rating of 10,001 pounds or greater, trailers, semitrailers, or
21 passenger buses, which are registered through the international
22 registration plan and operated under authority of a carrier
23 authorized and certificated by the United States department of
24 transportation or another federal authority to engage in the
25 carriage of persons or property in interstate commerce.
26 (iii) Aircraft operated by air carriers authorized and
27 certificated by the United States department of transportation or
1 other federal or foreign authority to transport air cargo or
2 passengers in interstate or foreign commerce.
3 (iv) Containers designed for use on or component parts
4 attached or secured to the equipment included in subparagraphs
5 (i) to (iii).
6 (7) A person may deviate from the sourcing requirements under
7 this section as provided in section 20 or 21.
8 Sec. 20. (1) A business purchaser other than a holder of a
9 direct pay permit under section 8 of the use tax act, 1937 PA 94,
10 MCL 205.98, that, at the time of its purchase of electronically
11 delivered computer software, knows that the electronically
12 delivered computer software will be concurrently available for
13 use in more than 1 taxing jurisdiction shall deliver to the
14 seller at the time of purchase an MPU exemption form, which shall
15 be prescribed by and available from the department.
16 (2) Upon receipt of the MPU exemption form, the seller is
17 relieved of all obligation to collect, pay, or remit the
18 applicable tax and the purchaser is then obligated to pay the
19 applicable tax on a direct pay basis.
20 (3) A purchaser who delivers an MPU exemption form may use
21 any reasonable, consistent, and uniform method of apportionment
22 of the tax supported by the purchaser's business records as they
23 exist at the time of consummation of the sale.
24 (4) The MPU exemption form remains in effect for all
25 subsequent sales of electronically delivered computer software by
26 the seller to the purchaser until revoked in writing. However,
27 the apportionment may change based on the business records as
1 they exist at the time of each subsequent sale.
2 (5) A business purchaser that is a holder of a direct pay
3 permit is not required to deliver an MPU exemption form to the
4 seller but shall apportion the tax on electronically delivered
5 computer software using any reasonable, consistent, and uniform
6 method supported by the purchaser's business records as they
7 exist at the time of consummation of the sale.
8 (6) As used in this section, "MPU exemption form" means a
9 multiple points of use exemption form.
10 Sec. 21. (1) A purchaser of direct mail other than a holder
11 of a direct pay permit under section 8 of the use tax act, 1937
12 PA 94, MCL 205.98, shall provide to the seller at the time of
13 purchase either a direct mail form as prescribed by the
14 department or information indicating the taxing jurisdictions to
15 which the direct mail is delivered to recipients.
16 (2) Upon receipt of the direct mail form, the seller is
17 relieved of all obligation to collect, pay, or remit the
18 applicable tax and the purchaser is then obligated to pay the
19 applicable tax on a direct pay basis.
20 (3) A direct mail form remains in effect for all subsequent
21 sales of direct mail by the seller to the purchaser until revoked
22 in writing.
23 (4) Upon receipt of information from the purchaser indicating
24 the taxing jurisdictions to which the direct mail is delivered to
25 recipients, the seller shall collect the tax according to that
26 delivery information. In the absence of bad faith, the seller is
27 relieved of any further obligation to collect the tax if the
1 seller collected the tax using the delivery information provided
2 by the purchaser.
3 (5) If the purchaser does not have a direct pay permit and
4 does not provide the seller with a direct mail form or delivery
5 information as required in subsection (1), the seller shall
6 collect the tax in the same manner as provided in section 19.
7 Nothing in this subsection limits a purchaser's obligation for
8 the tax under this act.
9 (6) A purchaser who provides the seller with documentation of
10 a direct pay permit is not required to provide a direct mail form
11 or delivery information.
12 Sec. 23. (1) A person engaged in the business of selling
13 tangible personal property at retail shall not advertise or hold
14 out to the public in any manner, directly or indirectly, that the
15 tax imposed under this act is not considered as an element in the
16 price to the consumer. This act does not prohibit any taxpayer
17 from reimbursing himself or herself by adding to the sale price
18 any tax levied by this act.
19 (2) Subject to subsection (3), in determining amounts to be
20 added to the sales prices for reimbursement purposes, the seller
21 shall compute the tax to the third decimal place and round up to
22 a whole cent when the third decimal place is greater than 4 or
23 round down to a whole cent when the third decimal place is 4 or
24 less.
25 (3) (2) The
following brackets shall may be used through
26 December 31, 2005 by retailers in determining amounts to be added
27 to sales prices for reimbursement purposes:
1 Amount of Sale Tax
2 1 cent to 10 cents................................ 0
3 11 cents to 24 cents.............................. 1 cent
4 25 cents to 41 cents.............................. 2 cents
5 42 cents to 58 cents.............................. 3 cents
6 59 cents to 74 cents.............................. 4 cents
7 75 cents to 91 cents.............................. 5 cents
8 92 cents to 99 cents.............................. 6 cents
9 For $1.00 and each multiple of $1.00, 6% of the sale price.
10 (4) (3) A
person other than the this state may not enrich
11 himself or herself or gain any benefit from the collection or
12 payment of the tax. The
use of the above brackets does not
13 relieve the retailer
from liability for payment of the full
14 amount of the tax
levied by this act.
15 (5) A person subject to tax under this act shall not
16 separately state on an invoice, bill of sale, or other similar
17 document given to the purchaser the tax imposed under the tobacco
18 products tax act, 1993 PA 327, MCL 205.421 to 205.436.
19 Enacting section 1. Sections 4c, 4l, 4m[1], 5a, 7, 7a, and
20 7b of the general sales tax act, 1933 PA 167, MCL 205.54c,
21 205.54l, 205.54m[1], 205.55a, 205.57, 205.57a, and 205.57b, are
22 repealed.
23 Enacting section 2. This amendatory act takes effect July
24 1, 2004.
25 Enacting section 3. This amendatory act does not take
26 effect unless all of the following bills of the 92nd Legislature
1 are enacted into law:
2 (a) House Bill No. 5502.
3 (b) House Bill No. 5504.
4 (c) House Bill No. 5505.