HOUSE BILL No. 6214

 

May 27, 2010, Introduced by Rep. Meadows and referred to the Committee on Tax Policy.

 

     A bill to amend 1937 PA 94, entitled

 

"Use tax act,"

 

by amending section 4a (MCL 205.94a), as amended by 2004 PA 172.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4a. The following are exempt from the tax under this act:

 

     (a) Rental receipts if the tangible personal property rented

 

or leased was previously subject to 1 of the following when

 

purchased by the lessor:

 

     (i) This act.

 

     (ii) The general sales tax act, 1933 PA 167, MCL 205.51 to

 

205.78.

 

     (b) Rental receipts if the tangible personal property rented

 

or leased was previously taxed under a sales or use tax act of

 

another state or a political subdivision of another state levied at


 

a rate of 6% or more.

 

     (c) Specific charges for technical support or for adapting or

 

modifying prewritten computer software programs to a purchaser's

 

needs or equipment if those charges are separately stated and

 

identified.

 

     (d) The sale of computer software originally designed for the

 

exclusive use and special needs of the purchaser.

 

     (e) The sale of a commercial advertising element if the

 

commercial advertising element is used to create or develop a

 

print, radio, television, or other advertisement, the commercial

 

advertising element is discarded or returned to the provider after

 

the advertising message is completed, and the commercial

 

advertising element is custom developed by the provider for the

 

purchaser. As used in this subdivision, "commercial advertising

 

element" means a negative or positive photographic image, an

 

audiotape or videotape master, a layout, a manuscript, writing of

 

copy, a design, artwork, an illustration, retouching, and

 

mechanical or keyline instructions. This exemption does not include

 

black and white or full color process separation elements, an

 

audiotape reproduction, or a videotape reproduction.

 

     (f) The sale of oxygen for human use dispensed pursuant to a

 

prescription.

 

     (g) The sale of insulin for human use.

 

     (h) A Before October 1, 2010, a meal provided free of charge

 

or at a reduced rate to an employee during work hours by a food

 

service establishment licensed by the department of agriculture

 

under the food law of 2000, 2000 PA 92, MCL 289.1101 to 289.8111.


 

     (i) The sale of diesel fuel to a person who is an interstate

 

motor carrier for use in a qualified commercial motor vehicle.