November 8, 2012, Introduced by Senator WARREN and referred to the Committee on Finance.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending sections 3 and 21 (MCL 205.93 and 205.111), section 3
as amended by 2007 PA 103 and section 21 as amended by 2010 PA 37.
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 for the privilege of
using, storing, or consuming tangible personal property in this
state at a total rate equal to 6% 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 consumer and
industry
services 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.
(c) If a vehicle, ORV, manufactured housing, aircraft,
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.
(4) The department may utilize the services, information, or
records of any other department or agency of state government in
the performance of its duties under this act, and other departments
or agencies of state government are required to furnish those
services, information, or records upon the request of the
department.
(5) Any decrease in the rate of the tax levied under
subsection (1) on services subject to tax under this act shall
apply only to billings rendered on or after the effective date of
the decrease.
Sec. 21. (1) Except as provided in subsections (2) and (3),
all money received and collected under this act shall be deposited
by the department of treasury in the state treasury to the credit
of the general fund, to be disbursed only by appropriations by the
legislature.
(2) The collections from the use tax imposed at the additional
rate of 2% approved by the electors March 15, 1994 shall be
deposited in the state school aid fund established in section 11 of
article IX of the state constitution of 1963.
(3)
For the fiscal year ending September 30, 2010 only,
$9,500,000.00
shall be deposited by the department of treasury into
the
Michigan promotion fund. As used in this subsection, "Michigan
promotion
fund" means the fund created in section 39 of the
Michigan
strategic fund act, 1984 PA 270, MCL 125.2039.