June 28, 2006, Introduced by Reps. Sheen, Drolet, Gosselin, Vander Veen, Hoogendyk, Baxter, Shaffer, Robertson, Pastor, Booher, Gaffney, Nofs and Stahl and referred to the Committee on Tax Policy.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4v (MCL 205.54v), as amended by 2002 PA 452.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4v. (1) The tax levied under this act does not apply to
the purchase of machinery and equipment for use or consumption in
the rendition of any combination of services, the use or
consumption
of which is taxable under section
3a(a) 3a(1)(a) or
(c) or section 3b of the use tax act, 1937 PA 94, MCL 205.93a and
205.93b, except that this exemption is limited to the tangible
personal property located on the premises of the subscriber and to
central office equipment or wireless equipment, directly used or
consumed in transmitting, receiving, or switching, or in the
monitoring of switching of a 2-way interactive communication. As
used in this subsection, central office equipment or wireless
equipment does not include distribution equipment including cable
or wire facilities.
(2) Beginning
April 1, 1999, the The property under
subsection (1) is exempt only to the extent that the property is
used
for the exempt purposes stated in this section. There
Beginning April 1, 1999 through March 31, 2006, there is an
irrebuttable presumption that 90% of total use is for exempt
purposes. This
presumption is in effect until April 1, 2006, at
which
time the presumption shall be reviewed and redetermined by
the
department of treasury using nonexempt and exempt user
information
for the previous 12-month period. That redetermined
irrebuttable
presumption shall be in effect for the following 7
years.
The irrebuttable presumption shall be reviewed and
redetermined
every 7 years after April 1, 2006 and applied to the
following
7 years. Beginning April 1,
2006, there is an
irrebuttable presumption that 100% of the total use is for exempt
purposes.