TAX REFUND FOR AUCTIONED ITEMS

Senate Bill 1039

Sponsor:  Sen. Michelle A. McManus

House Committee:  Tax Policy

Senate Committee:  Finance

Complete to 6-5-06

A SUMMARY OF SENATE BILL 1039 AS PASSED BY THE SENATE 4-26-06

Senate Bill 1039 would amend the Streamlined Sales and Use Tax Revenue Equalization Act to allow a nonprofit organization to request a refund from the Department of Treasury equal to six percent of the amount of gross proceeds from sales made at a charitable auction.  The organization could not seek a refund for any portion of a sale for which sales tax was collected from the purchaser unless the tax collected was refunded to the purchaser.  The organization would have to retain in its records certification of the fair market value of the auctioned item.  At the organization's option, the refund could be used to reduce the organization's sales tax liability. 

MCL 205.184

FISCAL IMPACT:

The bill would reduce sales tax revenue by less than $1.0 million. 

                                                                                           Legislative Analyst:   Mark Wolf

                                                                                                  Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.