HARVESTING MACHINERY: TAX EXEMPTION S.B. 1121:
SUMMARY AS ENACTED
Senate Bill 1121 (as enacted) PUBLIC ACT 332 of 2008
Sponsor: Senator Patricia L. Birkholz
Senate Committee: Agriculture
House Committee: Agriculture
Date Completed: 3-25-09
CONTENT
The bill amended the General Sales Tax Act to extend a sales tax exemption to machinery that is capable of simultaneously harvesting grain or other crops and biomass residue from grain and other crops, and machinery manufactured after the bill's effective date for the purpose of harvesting agricultural biomass grown solely as an energy crop.
The Act provides a tax exemption for tangible personal property sold to people engaged in a business enterprise and using or consuming the property in the tilling, planting, caring for, or harvesting of things of the soil. Under the bill, this exemption includes the machinery described above.
The bill defines "biomass" as crop residue used to produce energy or agricultural crops grown specifically for the production of alternative energy.
The bill took effect on December 23, 2008.
MCL 205.54a
Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill will have no fiscal impact because the machinery described in the bill already was exempt from the sales tax under the law.
Fiscal Analyst: Jay Wortley
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1121/0708