Bill Text: MI HB4831 | 2013-2014 | 97th Legislature | Engrossed
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-Engrossed.html
HB-4831, As Passed Senate, December 12, 2013
HOUSE BILL No. 4831
June 13, 2013, Introduced by Reps. Lyons, Pscholka, Cotter, O'Brien, Hooker, Barnett and Cavanagh and referred to the Committee on Tax Policy.
A bill to amend 1933 PA 167, entitled
"General sales tax 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)
Sales of drugs for human use that can only be legally
dispensed
by prescription 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.
(c) Food sold in an unheated state by weight or volume as a
single item, without eating utensils.
(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.
