SALES TAX: MATERIALPERSON S.B. 118: COMMITTEE SUMMARY
[Please see the PDF version of this analysis, if available, to view this image.]






Senate Bill 118 (as introduced 2-9-11)
Sponsor: Senator Mike Green
Committee: Finance


Date Completed: 3-2-11

CONTENT The bill would amend the General Sales Tax Act to include a person who sells precast concrete products in the definition of "materialperson", making the person eligible to file returns for credit sales quarterly, rather than monthly.

Subject to certain exceptions, the Act requires taxpayers to file a sales tax return and remit the amount due on a monthly basis. The return must include the entire amount of all sales and gross proceeds of the taxpayer's business for the preceding month.

A taxpayer who is a materialperson has the option of filing quarterly returns for a credit sale (an extension of credit for the sale of taxable goods by a seller, other than a credit card sale). A materialperson may include the amount of all taxable sales and gross proceeds from materials furnished on a credit sale basis for the purpose of making an improvement to real property, in his or her first quarterly return due after the materialperson made the credit sale.

A "materialperson" is a person who provides materials for the improvement of real property, who has registered with the Department of Treasury and demonstrated to the Department that he or she is primarily engaged in the sale of lumber and building material-related products to owners, contractors, subcontractors, repairpersons, or consumers, and who is authorized to file a construction lien upon real property and improvements under the Construction Lien Act.


Under the bill, the definition also would include a person who is primarily engaged in the sale of precast concrete products, and meets the other criteria.


MCL 205.56 Legislative Analyst: Suzanne Lowe

FISCAL IMPACT
The bill would have no fiscal impact on State or local government.

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. sb118/1112