Bill Text: MI HB4831 | 2013-2014 | 97th Legislature | Chaptered

Michigan House Bill 4831 (Prior Session Legislation)

Bill Title: Sales tax; exemptions; tax on over-the-counter medications purchased pursuant to a prescription; exempt. Amends sec. 4g of 1933 PA 167 (MCL 205.54g).

Spectrum: Slight Partisan Bill (Republican 5-2)

Status: (Passed) 2013-12-31 - Assigned Pa 211'13 2013 Addenda [HB4831 Detail]

Download: Michigan-2013-HB4831-Chaptered.html

Act No. 211

Public Acts of 2013

Approved by the Governor

December 21, 2013

Filed with the Secretary of State

December 23, 2013

EFFECTIVE DATE: March 14, 2014

STATE OF MICHIGAN

97TH LEGISLATURE

REGULAR SESSION OF 2013

Introduced by Reps. Lyons, Pscholka, Cotter, O’Brien, Hooker, Barnett and Cavanagh

ENROLLED HOUSE BILL No. 4831

AN ACT to amend 1933 PA 167, entitled “An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,” by amending section 4g (MCL 205.54g), as amended by 2008 PA 438.

The People of the State of Michigan enact:

Sec. 4g. (1) The following are exempt from the tax under this act:

(a) The sale of a prescription drug for human use, an over-the-counter drug for human use pursuant to a prescription, or food or food ingredients, except prepared food intended for immediate human consumption. As used in this subdivision, “prescription” and “prescription drug” mean those terms as defined in section 17708 of the public health code, 1978 PA 368, MCL 333.17708.

(b) The deposit on a returnable container for a beverage or the deposit on a carton or case that is used for returnable containers.

(c) Food or tangible personal property purchased under the federal food stamp program or meals sold by a person exempt from the tax under this act that are eligible to be purchased under the federal food stamp program.

(d) Fruit or vegetable seeds and fruit or vegetable plants if purchased at a place of business authorized to accept food stamps by the food and nutrition service of the United States department of agriculture or a place of business that has made a complete and proper application for authorization to accept food stamps but has been denied authorization and provides proof of denial to the department of treasury.

(e) Live animals purchased with the intent to be slaughtered for human consumption.

(2) Food or drink heated or cooled mechanically, electrically, or by other artificial means to an average temperature above 75 degrees Fahrenheit or below 65 degrees Fahrenheit before sale and sold from a vending machine, except milk, nonalcoholic beverages in a sealed container, and fresh fruit, is subject to the tax under this act. The tax due under this act on the sale of food or drink from a vending machine selling both taxable items and items exempt under this subsection shall be calculated under this act based on 1 of the following as determined by the taxpayer:

(a) Actual gross proceeds from sales at retail.

(b) Forty-five percent of proceeds from the sale of items subject to tax under this act or exempt from the tax levied under this act, other than from the sale of carbonated beverages.

(3) “Food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Food and food ingredients do not include alcoholic beverages and tobacco.

(4) “Prepared food” means the following:

(a) Food sold in a heated state or that is heated by the seller.

(b) Two or more food ingredients mixed or combined by the seller for sale as a single item.

(c) Food sold with eating utensils provided by the seller, including knives, forks, spoons, glasses, cups, napkins, straws, or plates, but not including a container or packaging used to transport the food.

(5) Prepared food does not include the following:

(a) Food that is only cut, repackaged, or pasteurized by the seller.

(b) Raw eggs, fish, meat, poultry, and foods containing those raw items requiring cooking by the consumer in recommendations contained in section 3-401.11 of part 3-4 of chapter 3 of the 2001 food code published by the food and drug administration of the public health service of the department of health and human services, to prevent foodborne illness.

(d) Bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, doughnuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas, sold without eating utensils.

(6) “Prepared food intended for immediate consumption” means prepared food.

Clerk of the House of Representatives

Secretary of the Senate

Approved

Governor