2007 House Bill 4882 / Public Act 103

Revise use tax provisions

Introduced in the House

June 7, 2007

Introduced by Rep. Steve Bieda (D-25)

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 Committee on Tax Policy

Sept. 24, 2007

Substitute offered by Rep. Steve Bieda (D-25)

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

Amendment offered by Rep. Steve Bieda (D-25)

To clarify that the effect of the bill is retroactive.

The amendment passed by voice vote

Passed in the House 57 to 52 (details)

Received in the Senate

Sept. 25, 2007

Referred to the Committee of the Whole

Sept. 30, 2007

Amendment offered

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

Passed in the Senate 20 to 17 (details)

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.

Received in the House

Sept. 30, 2007

Oct. 1, 2007

Passed in the House 56 to 52 (details)

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.

Signed by Gov. Jennifer Granholm

Oct. 1, 2007