Bill Text: MI HB6221 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Sales tax; exemptions; sales of employee meals; eliminate exemption. Amends sec. 2 of 1933 PA 167 (MCL 205.52).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-01 - Printed Bill Filed 05/28/2010 [HB6221 Detail]

Download: Michigan-2009-HB6221-Introduced.html

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HOUSE BILL No. 6221

 

May 27, 2010, Introduced by Rep. Meadows and referred to the Committee on Tax Policy.

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 2 (MCL 205.52), as amended by 2004 PA 173.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) Except as provided in section 2a, there is levied

 

upon and there shall be collected from all persons engaged in the

 

business of making sales at retail, by which ownership of tangible

 

personal property is transferred for consideration, an annual tax

 

for the privilege of engaging in that business equal to 6% of the

 

gross proceeds of the business, plus the penalty and interest if

 

applicable as provided by law, less deductions allowed by this act.

 

     (2) The tax under subsection (1) also applies to the

 

following:

 

     (a) The transmission and distribution of electricity, whether

 

the electricity is purchased from the delivering utility or from

 

another provider, if the sale is made to the consumer or user of

 

the electricity for consumption or use rather than for resale.

 

     (b) The sale of a prepaid telephone calling card or a prepaid

 

authorization number for telephone use, rather than for resale,

 

including the reauthorization of a prepaid telephone calling card

 

or a prepaid authorization number.

 

     (c) A conditional sale, installment lease sale, or other

 

transfer of property, if title is retained as security for the

 

purchase but is intended to be transferred later.

 

     (3) Any person engaged in the business of making sales at

 

retail who is at the same time engaged in some other kind of

 

business, occupation, or profession not taxable under this act

 

shall keep books to show separately the transactions used in

 

determining the tax levied by under this act. If the person fails

 

to keep separate books, there shall be levied upon him or her the

 

tax provided for in subsection (1) equal to 6% of the entire gross

 

proceeds of both or all of his or her businesses. The taxes levied

 

by this section are a personal obligation of the taxpayer.

 

     (4) A Before October 1, 2010, a meal provided free of charge

 

or at a reduced rate to an employee during work hours by a food

 

service establishment licensed by the Michigan department of

 

agriculture under the food law of 2000, 2000 PA 92, MCL 289.1101 to

 

289.8111, for the convenience of the employer is not considered

 

transferred for consideration.