SALES TAX: BAKERY PRODUCTS                                    H.B. 4222 (H-1): FLOOR ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

House Bill 4222 (Substitute H-1 as reported without amendment)

Sponsor: Representative Kirk A. Profit

House Committee: Tax Policy

Senate Committee: Finance

 

CONTENT

 

The bill would amend the General Sales Tax Act to exempt from taxation bakery products that were sold for immediate consumption from a vending machine or by a vendor from a mobile facility.

 

Generally, under the Act, food for human consumption is exempt from the sales tax. Prepared food intended for immediate consumption is taxable, although there are some exceptions. Food or drink intended for immediate consumption sold from a vending machine or by a vendor from a mobile facility is taxable; however, milk, juice, fresh fruit, candy, nuts, chewing gum, cookies, crackers, and chips are exempt if sold in this manner. Further, bakery products intended for off-premises consumption, such as doughnuts, pastry, bread, and cakes, are exempt.

 

MCL 205.54g                                                                                     Legislative Analyst: G. Towne

 

FISCAL IMPACT

 

It is estimated that this bill would reduce sales tax collections by less than $500,000 a year. This would result in reductions of less than $366,000 in School Aid Fund revenue, $50,000 in revenue sharing, and $83,000 in General Fund/General Purpose revenue.

 

Date Completed: 5-3-95                                                                          Fiscal Analyst: J. Wortley

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

floor\hb4222

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.