June 14, 2005, Introduced by Rep. Sheen 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:
Sec.
4g. (1) The Except as
provided under subsection (2),
the tax levied under this act shall not apply to property purchased
from a seller or transferor if the property is part of the purchase
or transfer of a business.
(2)
The exemption provided by under this section shall not
apply to all of the following:
(a) The purchase or transfer of tangible personal property
that
is stock-in-trade or other property of a kind which that
would properly be included in the inventory of the seller or
transferor if on hand at the close of the seller's or transferor's
tax period or property held by the seller or transferor for sale to
customers in the ordinary course of its trade or business.
(b) The purchase or transfer of a motor vehicle, ORV, mobile
home, aircraft, snowmobile, or watercraft.
(3) As used in this section, "purchase or transfer of a
business" means 1 or more of the following:
(a) The purchaser or transferee has acquired and intends to
use the seller's or transferor's trade name or good will.
(b) The purchaser or transferee intends to continue all or
part of the business of the seller or transferor at the same
location or at another location.
(c) The purchaser or transferee acquired at least 75% of the
seller's or transferor's tangible personal property at 1 or more of
the seller's or transferor's business locations within this state.
Sec.
15. Any A seller who fails to register with the
department
as required under this act, shall be deemed is
guilty
of
a misdemeanor and upon conviction thereof shall be fined the
sum
of $25.00 is liable for a fine of $30.00 for each day such
the failure, neglect, or refusal to so register
continues after
notice
to such the seller from the department that he the
seller is required to register under this act.