HOUSE BILL No. 6040


     September 15, 1998, Introduced by Rep. Profit and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 39C.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

 2    1998, A QUALIFIED TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX

 3    IMPOSED BY THIS ACT EQUAL TO THE AMOUNT OF PERSONAL PROPERTY

 4    TAXES PAID BY THE TAXPAYER IN THE TAX YEAR ON RENTAL INVENTORY.

 5         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION FOR THE TAX

 6    YEAR EXCEEDS THE TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR, THAT

 7    PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX YEAR SHALL BE

 8    REFUNDED.

 9         (3) AS USED IN THIS SECTION:

10         (A) "QUALIFIED TAXPAYER" MEANS A PERSON THAT MEETS BOTH OF

11    THE FOLLOWING CRITERIA:


   06426'98                                                 RJA
                                              2

 1         (i) IS AN OWNER OF RENTAL INVENTORY THE RENTAL OF WHICH

 2    PROVIDES 50% OR MORE OF THE OWNER'S GROSS PROCEEDS FOR THE TAX

 3    YEAR.

 4         (ii) IS THE OWNER OF RENTAL INVENTORY THE POSSESSION OF

 5    WHICH IS NOT TRANSFERRED TO THE SAME PERSON FOR MORE THAN 6

 6    MONTHS IN ANY 12-MONTH PERIOD.

 7         (B) "RENTAL INVENTORY" MEANS TANGIBLE PERSONAL PROPERTY THAT

 8    IS SUBJECT TO A RENTAL AGREEMENT AND THAT IS PRINCIPALLY RENTED

 9    FOR HOUSEHOLD USE 50% OR MORE OF THE TIME, THE POSSESSION OF

10    WHICH IS TRANSFERRED FOR CONSIDERATION FOR AN HOURLY, DAILY,

11    WEEKLY, OR MONTHLY PERIOD.  RENTAL INVENTORY DOES NOT INCLUDE THE

12    FOLLOWING:

13         (i) A VIDEOTAPE.

14         (ii) MEDICAL SUPPLIES OR EQUIPMENT.

15         (iii) RECREATIONAL EQUIPMENT.

16         (iv) LINENS.

























   06426'98          Final page.                            RJA