Public Act 103 of 2007

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• Introduced by Rep. Steve Bieda (D) on June 7, 2007, to require a person who purchases items from out-of-state for storage but not for use in this state, or for a tax-exempt use, and subsequently converts the items to use in this state or taxable use, to pay the 6 percent use tax on the purchase price of the items. The bill would essentially reverse a decision of the state Supreme Court regarding the use by auto dealer employees of vehicles in the inventory, reversing the Court's order that the state give a tax refund to some dealers.
  • Referred to the House Tax Policy Committee on June 7, 2007.
  • Substitute offered by Rep. Steve Bieda (D) on September 24, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on September 24, 2007.
  • Amendment offered by Rep. Steve Bieda (D) on September 24, 2007, to clarify that the effect of the bill is retroactive. The amendment passed by voice vote in the House on September 24, 2007.
• Passed 57 to 52 in the House on September 24, 2007.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on September 25, 2007.
  • Referred to the Senate on September 25, 2007.
  • Amendment offered in the Senate on September 30, 2007, to establish the specific criteria by which a vehicle acquired by a new car dealer is considered to have been "converted" to personal use and thus subject to use tax. The amendment passed by voice vote in the Senate on September 30, 2007.
• Passed 20 to 17 in the Senate on September 30, 2007, to require a person who purchases items from out-of-state for storage but not for use in this state, or for a tax-exempt use, and subsequently converts the items to use in this state or taxable use, to pay the 6 percent use tax on the purchase price of the items. The bill would essentially reverse a decision of the state Supreme Court regarding the use by auto dealer employees of vehicles in the inventory, reversing the Court's order that the state give a tax refund to some dealers. In addition, the bill would establish the specific criteria by which a vehicle acquired by a new car dealer is considered to have been "converted" to personal use and thus subject to use tax.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on September 30, 2007.
• Passed 56 to 52 in the House on October 1, 2007, to concur with the Senate-passed version of the bill, which establishes the specific criteria by which a vehicle acquired by a new car dealer is considered to have been "converted" to personal use and thus subject to use tax. This eliminates the "retroactive" nature of the bill.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on October 1, 2007.