SB-1172, As Passed Senate, December 1, 2016

SUBSTITUTE FOR

SENATE BILL NO. 1172

     A bill to amend 1937 PA 94, entitled

"Use tax act,"

by amending section 3f (MCL 205.93f), as amended by 2014 PA 161.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3f. Beginning Except as otherwise provided under this

section, beginning April 1, 2014 through December 31, 2016, the use

or consumption of medical services provided by entities identified

in, and pursuant to contracts identified under, section 106(2)(a)

and section 109f(2) of the social welfare act, 1939 PA 280, MCL

400.106 and 400.109f, shall be taxed in the same manner as tangible

personal property is taxed under this act notwithstanding any other

provision or exemption under this act. Beginning on July 1, 2020 or

on the effective date of the repeal of section 3 of the health

insurance claims assessment act, 2011 PA 142, MCL 550.1733, or the

effective date of the amendatory act that amended section 3 of the

health insurance claims assessment act, 2011 PA 142, MCL 550.1733,

and reduced the assessment to 0.0%, whichever is sooner, the use or

consumption of medical services provided by entities identified in,

and pursuant to contracts identified under, section 106(2)(a) and

section 109f(2) of the social welfare act, 1939 PA 280, MCL 400.106

and 400.109f, shall be taxed in the same manner as tangible

personal property is taxed under this act notwithstanding any other

provision or exemption under this act. As used in this section,

"medical services" means those medical services provided only to

medicaid Medicaid beneficiaries enrolled under title XIX of the

social security act, 42 USC 1396 to 1396w.1396w-5.