Bill Text: MI HB5492 | 2013-2014 | 97th Legislature | Engrossed

Michigan House Bill 5492 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Use tax; distribution; 1% of use tax revenue; earmark to road funding. Amends sec. 21 of 1937 PA 94 (MCL 205.111). TIE BAR WITH: SB 0822'14

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-12-31 - Assigned Pa 474'14 With Immediate Effect 2014 Addenda [HB5492 Detail]

Download: Michigan-2013-HB5492-Engrossed.html

HB-5492, As Passed Senate, December 19, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5492

A bill to amend 1937 PA 94, entitled

"Use tax act,"

by amending sections 3 and 21 (MCL 205.93 and 205.111), as amended

by 2014 PA 80.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. (1) There is levied upon and there shall be collected

from every person in this state a specific tax, including both the

local community stabilization share and the state share, for the

privilege of using, storing, or consuming tangible personal

property in this state at a total combined rate equal to 6% 7% of

the price of the property or services specified in section 3a or

3b. The tax levied under this act applies to a person who acquires

tangible personal property or services that are subject to the tax

levied under this act for any tax-exempt use who subsequently

converts the tangible personal property or service to a taxable

use, including an interim taxable use. If tangible personal

property or services are converted to a taxable use, the tax levied

under this act shall be imposed without regard to any subsequent

tax-exempt use. Penalties and interest shall be added to the tax if

applicable as provided in this act. For the purpose of the proper

administration of this act and to prevent the evasion of the tax,

all of the following shall be presumed:

(a) That tangible personal property purchased is subject to

the tax if brought into this state within 90 days of the purchase

date and is considered as acquired for storage, use, or other

consumption in this state.

(b) That tangible personal property used solely for personal,

nonbusiness purposes that is purchased outside of this state and

that is not an aircraft is exempt from the tax levied under this

act if 1 or more of the following conditions are satisfied:

(i) The property is purchased by a person who is not a resident

of this state at the time of purchase and is brought into this

state more than 90 days after the date of purchase.

(ii) The property is purchased by a person who is a resident of

this state at the time of purchase and is brought into this state

more than 360 days after the date of purchase.

(2) The tax imposed by this section for the privilege of

using, storing, or consuming a vehicle, ORV, manufactured housing,

aircraft, snowmobile, or watercraft shall be collected before the

transfer of the vehicle, ORV, manufactured housing, aircraft,

snowmobile, or watercraft, except a transfer to a licensed dealer

or retailer for purposes of resale that arises by reason of a

transaction made by a person who does not transfer vehicles, ORVs,

manufactured housing, aircraft, snowmobiles, or watercraft in the

ordinary course of his or her business done in this state. The tax

on a vehicle, ORV, snowmobile, and watercraft shall be collected by

the secretary of state before the transfer of the vehicle, ORV,

snowmobile, or watercraft registration. The tax on manufactured

housing shall be collected by the department of licensing and

regulatory affairs, mobile home commission, or its agent before the

transfer of the certificate of title. The tax on an aircraft shall

be collected by the department of treasury. The price tax base of a

new or previously owned car or truck held for resale by a dealer

and that is not exempt under section 4(1)(c) is the purchase price

of the car or truck multiplied by 2.5% plus $30.00 per month

beginning with the month that the dealer uses the car or truck in a

nonexempt manner.

(3) The following transfers or purchases are not subject to

use tax:

(a) A transaction or a portion of a transaction if the

transferee or purchaser is the spouse, mother, father, brother,

sister, child, stepparent, stepchild, stepbrother, stepsister,

grandparent, grandchild, legal ward, or a legally appointed

guardian with a certified letter of guardianship, of the

transferor.

(b) A transaction or a portion of a transaction if the

transfer is a gift to a beneficiary in the administration of an

estate.

snowmobile, or watercraft that has once been subjected to the

Michigan sales or use tax is transferred in connection with the

organization, reorganization, dissolution, or partial liquidation

of an incorporated or unincorporated business and the beneficial

ownership is not changed.

(d) If an insurance company licensed to conduct business in

this state acquires ownership of a late model distressed vehicle as

defined in section 12a of the Michigan vehicle code, 1949 PA 300,

MCL 257.12a, through payment of damages in response to a claim or

when the person who owned the vehicle before the insurance company

reacquires ownership from the company as part of the settlement of

a claim.

(e) Beginning October 1, 2015, the transfer or purchase of

gasoline or diesel fuel used to operate a motor vehicle on the

public roads or highways of this state.

(4) The department may utilize the services, information, or

records of any other department or agency of state government or of

the authority in the performance of its duties under this act, and

other departments or agencies of state government and the authority

are required to furnish those services, information, or records

upon the request of the department.

(5) Beginning on October 1, 2015, the specific tax levied

under subsection (1) includes both a state share tax levied by this

state and a local community stabilization share tax authorized by

the amendatory act that added section 2c and levied by the

authority, which replaces the reduced state share at the following

rates in each of the following state fiscal years:

(a) For fiscal year 2015-2016, the local community