HB-6076, As Passed House, November 30, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6076

     A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 4w (MCL 205.54w), as amended by 2004 PA 173.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4w. (1) For taxes levied after June 30, 1999, a sale of

tangible personal property to a person directly engaged in the

business of constructing, altering, repairing, or improving real

estate for others to the extent that the property is affixed to and

made a structural part of a nonprofit hospital or a nonprofit

housing entity qualified as exempt under section 15a of the state

housing development authority act of 1966, 1966 PA 346, MCL

125.1415a, is exempt from the tax under this act. For purposes of a

county long-term medical care facility built after December 31,

1995, "affixed to and made a structural part of" means any physical

connection to an existing county long-term medical care facility.

     (2) An exemption shall not be granted under this section for

any portion of property otherwise qualifying for exemption under

this section if income or a benefit inures directly or indirectly

to an individual, private stockholder, or other private person from

the independent or nonessential operation of that portion of

property.

     (3) As used in this section:

     (a) "Nonprofit hospital" means 1 of the following:

     (i) That portion of a building to which 1 of the following

applies:

     (A) Is owned or operated by an entity exempt under section

501(c)(3) of the internal revenue code, 26 USC 501, that is

licensed as a hospital under part 215 of the public health code,

1978 PA 368, MCL 333.21501 to  333.21568  333.21571.

     (B) Is owned or operated by a governmental unit in which

medical attention is provided.

     (C) Is owned or operated by an entity or entities exempt under

section 501(c)(2) or (3) of the internal revenue code, 26 USC 501,

in which medical attention is provided.

     (ii) That portion of real property necessary and related to a

building described in subparagraph (i) in which medical attention is

provided.

     (iii) A county long-term medical care facility built after

December 31, 1995, including any addition to an existing county

long-term medical care facility, if the addition is owned and

operated by either the county or the county long-term medical care

facility, regardless of whether the addition is licensed as a

nursing home or skilled nursing facility under part 217 of the

public health code, 1978 PA 368, MCL 333.21701 to 333.21799e, or

whether the addition meets the requirements set forth in subsection

(1).

     (b) "Nonprofit hospital" does not include the following:

     (i) A freestanding building or other real property of a nursing

home or skilled nursing facility licensed under part 217 of the

public health code, 1978 PA 368, MCL 333.21701 to 333.21799e.

     (ii) A hospice licensed under part 214 of the public health

code, 1978 PA 368, MCL 333.21401 to  333.21421  333.21420.

     (iii) A home for the aged licensed under part 213 of the public

health code, 1978 PA 368, MCL 333.21301 to  333.21333  333.21335.

     (c) "Medical attention" means that level of medical care in

which a physician provides acute care or active treatment of

medical, surgical, obstetrical, psychiatric, chronic, or

rehabilitative conditions, that require the observation, diagnosis,

and daily treatment by a physician.

     Enacting section 1. This amendatory act is retroactive and is

effective for taxes levied after June 30, 1999.