April 25, 2013, Introduced by Reps. Rutledge, Irwin, Geiss, Faris, Stallworth, Tlaib, Townsend, Lipton, Hovey-Wright, Ananich and Switalski and referred to the Committee on Transportation and Infrastructure.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 3 (MCL 205.93), as amended by 2012 PA 408.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) There is levied upon and there shall be collected
from every person in this state a specific tax for the privilege of
using, storing, or consuming tangible personal property in this
state at a total rate equal to 6% of the price of the property or
services specified in section 3a or 3b. The tax levied under this
act applies to a person who acquires tangible personal property or
services that are subject to the tax levied under this act for any
tax-exempt use who subsequently converts the tangible personal
property or service to a taxable use, including an interim taxable
use. If tangible personal property or services are converted to a
taxable use, the tax levied under this act shall be imposed without
regard to any subsequent tax-exempt use. Penalties and interest
shall be added to the tax if applicable as provided in this act.
For the purpose of the proper administration of this act and to
prevent the evasion of the tax, all of the following shall be
presumed:
(a) That tangible personal property purchased is subject to
the tax if brought into this state within 90 days of the purchase
date and is considered as acquired for storage, use, or other
consumption in this state.
(b) That tangible personal property used solely for personal,
nonbusiness purposes that is purchased outside of this state and
that is not an aircraft is exempt from the tax levied under this
act if 1 or more of the following conditions are satisfied:
(i) The property is purchased by a person who is not a resident
of this state at the time of purchase and is brought into this
state more than 90 days after the date of purchase.
(ii) The property is purchased by a person who is a resident of
this state at the time of purchase and is brought into this state
more than 360 days after the date of purchase.
(2) The tax imposed by this section for the privilege of
using, storing, or consuming a vehicle, ORV, manufactured housing,
aircraft, snowmobile, or watercraft shall be collected before the
transfer of the vehicle, ORV, manufactured housing, aircraft,
snowmobile, or watercraft, except a transfer to a licensed dealer
or retailer for purposes of resale that arises by reason of a
transaction made by a person who does not transfer vehicles, ORVs,
manufactured housing, aircraft, snowmobiles, or watercraft in the
ordinary course of his or her business done in this state. The tax
on a vehicle, ORV, snowmobile, and watercraft shall be collected by
the secretary of state before the transfer of the vehicle, ORV,
snowmobile, or watercraft registration. The tax on manufactured
housing shall be collected by the department of licensing and
regulatory affairs, mobile home commission, or its agent before the
transfer of the certificate of title. The tax on an aircraft shall
be collected by the department of treasury. The price tax base of a
new or previously owned car or truck held for resale by a dealer
and that is not exempt under section 4(1)(c) is the purchase price
of the car or truck multiplied by 2.5% plus $30.00 per month
beginning with the month that the dealer uses the car or truck in a
nonexempt manner.
(3) The following transfers or purchases are not subject to
use tax:
(a) A transaction or a portion of a transaction if the
transferee or purchaser is the spouse, domestic partner, mother,
father, brother, sister, child, stepparent, stepchild, stepbrother,
stepsister, grandparent, grandchild, legal ward, or a legally
appointed guardian with a certified letter of guardianship, of the
transferor. As used in this subdivision, "domestic partner" means a
person, other than a spouse, with whom the transferor or purchaser
cohabits.
(b) A transaction or a portion of a transaction if the
transfer is a gift to a beneficiary in the administration of an
estate.
(c) If a vehicle, ORV, manufactured housing, aircraft,
snowmobile, or watercraft that has once been subjected to the
Michigan sales or use tax is transferred in connection with the
organization, reorganization, dissolution, or partial liquidation
of an incorporated or unincorporated business and the beneficial
ownership is not changed.
(d) If an insurance company licensed to conduct business in
this state acquires ownership of a late model distressed vehicle as
defined in section 12a of the Michigan vehicle code, 1949 PA 300,
MCL 257.12a, through payment of damages in response to a claim or
when the person who owned the vehicle before the insurance company
reacquires ownership from the company as part of the settlement of
a claim.
(4) The department may utilize the services, information, or
records of any other department or agency of state government or of
the authority in the performance of its duties under this act, and
other departments or agencies of state government and the authority
are required to furnish those services, information, or records
upon the request of the department.
(5) Beginning on October 1, 2015, the specific tax levied
under subsection (1) includes both a state component tax levied by
this state and a metropolitan areas component tax levied by the
authority at the following rates in each of the following state
fiscal years:
(a) For fiscal year 2015-2016, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $41,700,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(b) For fiscal year 2016-2017, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $257,500,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(c) For fiscal year 2017-2018, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $277,100,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(d) For fiscal year 2018-2019, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $293,800,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(e) For fiscal year 2019-2020, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $311,300,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(f) For fiscal year 2020-2021, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $326,800,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(g) For fiscal year 2021-2022, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $345,200,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(h) For fiscal year 2022-2023, the metropolitan areas
component rate is that rate calculated by the department of
treasury sufficient to generate $362,400,000.00 in revenue and the
state component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(i) For fiscal year 2023-2024 and each fiscal year thereafter,
the metropolitan areas component rate is that rate calculated by
the department of treasury sufficient to generate the amount
distributed under this section in the immediately preceding year
adjusted by an industrial and commercial personal property growth
factor calculated by the department of treasury and the state
component rate is that rate determined by subtracting the
metropolitan areas component rate from 6%.
(6) The state component includes the portion of the use tax
imposed at the additional rate of 2% approved by the electors of
this state on March 15, 1994 and dedicated for aid to schools under
section 21(2). The metropolitan areas component does not include
the portion of the use tax imposed at the additional rate of 2%
approved by the electors of this state on March 15, 1994.
(7) The total combined rate of the tax levied by this state
and the authority under this act, including both the state
component and the metropolitan areas component, shall not exceed
6%.