SALES TAX: EARTHMOVING EQUIPMENT S.B. 883:
FLOOR SUMMARY
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Senate Bill 883 (as reported without amendment)
Sponsor: Senator Nancy Cassis
Committee: Finance
CONTENT
The bill would amend the Streamlined Sales and Use Tax Revenue Equalization Act to allow a refund of the sales tax paid on a core charge attributable to a recycling fee, deposit, or disposal fee for a component, part, or battery for heavy earthmoving equipment.
A person who paid sales tax on such a core charge could calculate a credit and seek a refund from the Department of Treasury in an amount equal to the sales tax paid.
Proposed MCL 205.184a Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill would reduce sales tax revenue by approximately $250,000 per year. Sales tax revenue is primarily distributed to the School Aid Fund and the General Fund, and to local units through constitutional and statutory revenue sharing.
Date Completed: 1-14-10 Fiscal Analyst: David Zin
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb883/0910