HB-4464, As Passed Senate, October 22, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4464

     A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 4g (MCL 205.54g), as amended by 2013 PA 211.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4g. (1) The following are exempt from the tax under this

act:

     (a) The sale of a prescription drug Sales of drugs for human

use that can only be legally dispensed by prescription, an over-

the-counter drug drugs for human use pursuant to a that are legally

dispensed by prescription, or food or food ingredients, except

prepared food intended for immediate human consumption. As used in

this subdivision, "prescription" and "prescription drug" mean those

terms as defined in section 17708 of the public health code, 1978

PA 368, MCL 333.17708."over-the-counter drug" means a drug that is

labeled in accordance with the format and content requirements

required for labeling over-the-counter drugs under 21 CFR 201.66.

     (b) The deposit on a returnable container for a beverage or

the deposit on a carton or case that is used for returnable

containers.

     (c) Food or tangible personal property purchased under the

federal food stamp program or meals sold by a person exempt from

the tax under this act that are eligible to be purchased under the

federal food stamp program.

     (d) Fruit or vegetable seeds and fruit or vegetable plants if

purchased at a place of business authorized to accept food stamps

by the food Food and nutrition service Nutrition Service of the

United States department Department of agriculture Agriculture or a

place of business that has made a complete and proper application

for authorization to accept food stamps but has been denied

authorization and provides proof of denial to the department of

treasury.

     (e) Live animals purchased with the intent to be slaughtered

for human consumption.

     (2) Food or drink heated or cooled mechanically, electrically,

or by other artificial means to an average temperature above 75

degrees Fahrenheit or below 65 degrees Fahrenheit before sale and

sold from a vending machine, except milk, nonalcoholic beverages in

a sealed container, and fresh fruit, is subject to the tax under

this act. The tax due under this act on the sale of food or drink

from a vending machine selling both taxable items and items exempt

under this subsection shall be calculated under this act based on 1

of the following as determined by the taxpayer:

     (a) Actual gross proceeds from sales at retail.

     (b) Forty-five percent of proceeds from the sale of items

subject to tax under this act or exempt from the tax levied under

this act, other than from the sale of carbonated beverages.

     (3) "Food and food ingredients" means substances, whether in

liquid, concentrated, solid, frozen, dried, or dehydrated form,

that are sold for ingestion or chewing by humans and are consumed

for their taste or nutritional value. Food and food ingredients do

not include alcoholic beverages and tobacco.

     (4) "Prepared food" means the following:

     (a) Food sold in a heated state or that is heated by the

seller.

     (b) Two or more food ingredients mixed or combined by the

seller for sale as a single item.

     (c) Food sold with eating utensils provided by the seller,

including knives, forks, spoons, glasses, cups, napkins, straws, or

plates, but not including a container or packaging used to

transport the food.

     (5) Prepared food does not include the following:

     (a) Food that is only cut, repackaged, or pasteurized by the

seller.

     (b) Raw eggs, fish, meat, poultry, and foods containing those

raw items requiring cooking by the consumer in recommendations

contained in section 3-401.11 of part 3-4 of chapter 3 of the 2001

food code published by the food Food and drug administration Drug

Administration of the public health service Public Health Service

of the department Department of health Health and human services,

Human Services, to prevent foodborne illness.

     (c) Food sold in an unheated state by weight or volume as a

single item, without eating utensils.

     (d) Bakery items, including bread, rolls, buns, biscuits,

bagels, croissants, pastries, doughnuts, danish, cakes, tortes,

pies, tarts, muffins, bars, cookies, and tortillas, sold without

eating utensils.

     (6) "Prepared food intended for immediate consumption" means

prepared food.

     Enacting section 1. This amendatory act is retroactive and

effective beginning March 14, 2014.