September 5, 2018, Introduced by Senators WARREN, YOUNG, GREGORY and HOOD and referred to the Committee on Finance.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4g (MCL 205.54g), as amended by 2015 PA 171.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4g. (1) The following are exempt from the tax under this
(a) Sales of drugs for human use that can only be legally
dispensed by prescription, over-the-counter drugs for human use
that are legally dispensed by prescription, or food or food
ingredients, except prepared food intended for immediate human
consumption. As used in this subdivision, "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
(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 and Nutrition Service of the United States Department
of 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.
(f) Sales of marihuana or marihuana-derived products that bear
the universal symbol and label required under the medical marihuana
facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801,
and the marihuana tracking act, 2016 PA 282, MCL 333.27901 to
(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
(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
(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 and Drug Administration of the
Public Health Service of the Department of Health and 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
(6) "Prepared food intended for immediate consumption" means
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.