August 22, 2007, Introduced by Senators PAPPAGEORGE, HUNTER, KAHN, JACOBS, OLSHOVE, McMANUS, JANSEN, BIRKHOLZ, RICHARDVILLE and HARDIMAN and referred to the Committee on Finance.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
(MCL 205.51 to 205.78) by adding section 4dd.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4dd. (1) A person subject to the tax under this act may
exclude from the gross proceeds used for the computation of the tax
the sale of any of the following if the sale is made in the first
15 calendar days of September each year:
(a) Clothing or footwear to be worn by an individual, but not
more than $150.00 of the aggregate sales price of all items for an
individual purchaser.
(b) School supplies, but not more than $50.00 of the aggregate
sales price of all items for an individual purchaser.
(2) The exemption provided for in subsection (1)(a) does not
apply to jewelry or to accessories, other than belts, neckwear, and
head scarves.
(3) The department of treasury shall determine school supplies
eligible for the exemption provided for in subsection (1)(b).
(4) Each year the state treasurer shall estimate the amount of
sales tax that was not collected because of this exemption, and
that amount shall be transferred from the general fund to the state
school aid fund.