Act No. 390

Public Acts of 2016

Approved by the Governor

December 28, 2016

Filed with the Secretary of State

December 28, 2016

EFFECTIVE DATE: December 28, 2016

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2016

Introduced by Senators Horn, Shirkey, MacGregor, Stamas and Proos

ENROLLED SENATE BILL No. 1172

AN ACT to amend 1937 PA 94, entitled “An act to provide for the levy, assessment, and collection of a specific excise tax on the storage, use, or consumption in this state of tangible personal property and certain services; to appropriate the proceeds of that tax; to prescribe penalties; and to make appropriations,” by amending section 3f (MCL 205.93f), as amended by 2014 PA 161.

The People of the State of Michigan enact:

Sec. 3f. 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 beneficiaries enrolled under title XIX of the social security act, 42 USC 1396 to 1396w-5.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor