HOUSE BILL No. 5072


     November 2, 1999, Introduced by Reps. Gosselin, DeHart, Shackleton, Voorhees,
DeRossett, Stamas, Bishop, Hart, Woronchak and Lemmons and referred to the Committee on
Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   (MCL 205.51 to 205.78) by adding section 4x.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4X.  (1) A PERSON SUBJECT TO THE TAX UNDER THIS ACT MAY

 2    EXCLUDE FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF THE

 3    TAX THE SALE OF AN ARTICLE OF CLOTHING OR FOOTWEAR TO BE WORN ON

 4    AN INDIVIDUAL IF THE SALE IS MADE IN THE FIRST 10 CALENDAR DAYS

 5    OF AUGUST EACH YEAR.

 6         (2) THE EXEMPTION PROVIDED FOR IN SUBSECTION (1) DOES NOT

 7    APPLY TO JEWELRY OR TO ACCESSORIES, OTHER THAN BELTS, NECKWEAR,

 8    AND HEAD SCARVES.

 9         (3) EACH YEAR THE STATE TREASURER SHALL ESTIMATE THE AMOUNT

10    OF SALES TAX THAT WAS NOT COLLECTED BECAUSE OF THIS EXEMPTION,




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 1    AND THAT AMOUNT SHALL BE TRANSFERRED FROM THE GENERAL FUND TO THE

 2    STATE SCHOOL AID FUND.




















































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