HOUSE BILL No. 5299

 

November 13, 2003, Introduced by Rep. Wenke and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1937 PA 94, entitled                                              

                                                                                

    "Use tax act,"                                                              

                                                                                

    by amending sections 4g and 15 (MCL 205.94g and 205.105), section           

                                                                                

    4g as added by 1985 PA 66.                                                  

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 4g.  (1)  The  Except as provided under subsection (2),                

                                                                                

2   the tax levied under this act shall not apply to property                   

                                                                                

3   purchased from a seller or transferor if the property is part of            

                                                                                

4   the purchase or transfer of a business.                                     

                                                                                

5       (2) The exemption  provided by  under this section shall not                

                                                                                

6   apply to all of the following:                                              

                                                                                

7       (a) The purchase or transfer of tangible personal property                  

                                                                                

8   that is stock-in-trade or other property of a kind  which  that             

                                                                                

9   would properly be included in the inventory of the seller or                

                                                                                

10  transferor if on hand at the close of the seller's or                       

                                                                                


                                                                                

1   transferor's tax period or property held by the seller or                   

                                                                                

2   transferor for sale to customers in the ordinary course of its              

                                                                                

3   trade or business.                                                          

                                                                                

4       (b) The purchase or transfer of a motor vehicle, ORV, mobile                

                                                                                

5   home, aircraft, snowmobile, or watercraft.                                  

                                                                                

6       (3) As used in this section, "purchase or transfer of a                     

                                                                                

7   business" means 1 or more of the following:                                 

                                                                                

8       (a) The purchaser or transferee has acquired and intends to                 

                                                                                

9   use the seller's or transferor's trade name or good will.                   

                                                                                

10      (b) The purchaser or transferee intends to continue all or                  

                                                                                

11  part of the business of the seller or transferor at the same                

                                                                                

12  location or at another location.                                            

                                                                                

13      (c) The purchaser or transferee acquired at least 75% of the                

                                                                                

14  seller's or transferor's tangible personal property at 1 or more            

                                                                                

15  of the seller's or transferor's business locations within this              

                                                                                

16  state.                                                                      

                                                                                

17      Sec. 15.   Any  A seller who fails to register with the                     

                                                                                

18  department as required under this act,  shall be deemed  is                 

                                                                                

19  guilty of a misdemeanor and  upon conviction thereof shall be               

                                                                                

20  fined the sum of $25.00  is liable for a fine of $30.00 for each            

                                                                                

21  day  such  the failure, neglect, or refusal to  so  register                

                                                                                

22  continues after notice to  such  the seller from the department             

                                                                                

23  that  he  the seller is required to register under this act.