2007 House Bill 4882 (Revise use tax provisions )

Public Act 103 of 2007

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• Introduced by Rep. Steve Bieda 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 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 in the House by voice vote on September 24, 2007.
  • Amendment offered by Rep. Steve Bieda on September 24, 2007, to clarify that the effect of the bill is retroactive. The amendment passed in the House by voice vote on September 24, 2007.
• Passed in the House (57 to 52) on September 24, 2007. [Vote Details and Comments]
• 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 in the Senate by voice vote on September 30, 2007.
• Passed in the Senate (20 to 17) 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. [Vote Details and Comments]
• Received in the House on September 30, 2007.
• Passed in the House (56 to 52) 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. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on October 1, 2007.

Comments

Introduced by Rep. Steve Bieda on June 7, 2007. Passed in the House (57 to 52) on September 24, 2007. New Comment