HOUSE BILL No. 6247


     November 5, 1998, Introduced by Rep. Profit and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1999 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1999 TAX YEAR, A TAXPAYER THAT SCRAPS AN IN-USE, HIGH EMIT-

 3    TING VEHICLE DURING THE TAX YEAR MAY CLAIM A CREDIT AGAINST THE

 4    TAX IMPOSED BY THIS ACT EQUAL TO THE BLUE BOOK VALUE OF THAT

 5    IN-USE HIGH EMITTING VEHICLE OR $500.00, WHICHEVER IS GREATER.

 6         (2) AS USED IN THIS SECTION:

 7         (A) "BLUE BOOK VALUE" MEANS THE CURRENT MARKET VALUE AS

 8    DETERMINED USING THE MOST RECENT NATIONAL AUTOMOBILE DEALERS

 9    ASSOCIATION PUBLICATION OF AUTOMOBILE VALUES, ALSO KNOWN AS THE

10    KELLY BLUE BOOK.




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 1         (B) "HIGH EMITTING VEHICLE" MEANS A LIGHT DUTY VEHICLE OR

 2    LIGHT DUTY TRUCK MANUFACTURED PRIOR TO THE 1980 MODEL YEAR.

 3         (C) "IN-USE" MEANS THAT A VEHICLE MEETS ALL OF THE FOLLOWING

 4    CRITERIA:

 5         (i) IT WAS CONTINUOUSLY REGISTERED TO THE OWNER FOR AT LEAST

 6    THE 12 MONTHS IMMEDIATELY PRECEDING THE DATE ON WHICH THE OWNER

 7    SCRAPS IT.

 8         (ii) IT IS OPERABLE AS MEASURED BY HAVING BEEN DRIVEN TO THE

 9    SCRAP DEALER.

10         (iii) PROPER PASSAGE OF TITLE TO THE SCRAP DEALER IS COM-

11    PLETED PRIOR TO SCRAPPING.

12         (D) "LIGHT DUTY VEHICLE OR LIGHT DUTY TRUCK" MEANS A VEHICLE

13    WITH A GROSS VEHICLE WEIGHT RATING OF 6,000 POUNDS OR LESS.

14         (E) "SCRAP" MEANS THE RECOVERY OF PARTS FOR RECYCLING FROM A

15    VEHICLE, AND THE REMOVAL FROM USE AND THE MARKETPLACE OF A VEHI-

16    CLE, BY A LICENSED AND APPROVED AUTOMOTIVE SCRAP DEALER.

























   06655'98          Final page.                            RJA