END PRISON INMATES SALES TAX EXEMPTION

House Bill 4980 (Substitute H-2)

Sponsor:  Rep. Rick Jones

Committee:  Tax Policy

Complete to 8-31-05

A SUMMARY OF HOUSE BILL 4980 (H-2) AS REPORTED FROM COMMITTEE

The bill would amend the General Sales Tax Act to eliminate the exemption provided for the sale of tangible personal property to inmates in a penal or correctional institution purchased with scrip (or its equivalent) issued and redeemed by the correctional institution, beginning October 1, 2005.  The bill is tie barred to House Bills 5095-5098 and 5106-5108.  This exemption was added to the General Sales Tax Act with the enactment of Public Act 207 of 1971. 

MCL 205.54a

FISCAL IMPACT:

The bill would increase annual sales tax revenue by an estimated $0.7 million ($0.2 million in General Fund/General Purpose revenue and $0.5 million in School Aid Fund Revenue). 

                                                                                           Legislative Analyst:   Mark Wolf

                                                                                                  Fiscal Analyst:   Rebecca Ross

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.