November 10, 2016, Introduced by Senators HORN, SHIRKEY, MACGREGOR, STAMAS and PROOS and referred to the Committee on Michigan Competitiveness.
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, 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. If the federal government provides a
written notification and explanation to this state that the use tax
revenues assessed on entities under this section are not
permissible and as a result federal Medicaid match funding will be
reduced beginning on a date certain, then beginning on that date
certain or when federal reimbursement is actually reduced,
whichever occurs first, the tax authorized under this section shall
no longer be collected or assessed. However, if the state
subsequently receives a written notification from the federal
government that the tax previously assessed and collected pursuant
to this section is permissible and federal Medicaid match funding
is available, then the department shall issue a bulletin and
provide written notification to those 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, explaining that the use or consumption of medical
services provided by those entities shall be taxed as provided in
this section beginning on a date certain. As used in this section,
"medical services" means those medical services provided only to
medicaid beneficiaries enrolled under title XIX of the social
security
act, 42 USC 1396 to 1396w.1396w-5.