2007 House Bill 4380 / 2008 Public Act 436

FY 2008 Executive Budget “Revenue Enhancements”

Introduced in the House

March 1, 2007

Introduced by Rep. Frank Accavitti (D-42)

To coordinate the use or sales tax revisions proposed by House Bills 4278 and 4379 (which increase taxes paid on sales of trucks, trailers and parts for use in interstate commerce) with the <a href="http://www.michiganvotes.org/2004-HB-5504">“Streamlined Sales Tax”</a> project being pursued by most states, which if allowed by Congress would create a centralized system for states to collect use or sales tax on out-of-state internet or catalog purchases. This is one of a number of “tax expenditure repeal” proposals included in Gov. Jennifer Granholm’s Fiscal Year 2007-2008 budget recommendation, which is based on approximately $1 billion in tax increases.

Referred to the Committee on Tax Policy

Feb. 13, 2008

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Feb. 27, 2008

Substitute offered

To replace the previous version of the bill with one that changes it's purpose. See Bieda substitute.

The substitute failed by voice vote

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

To replace the previous version of the bill with one that uses the bill as a legislative "vehicle" to allow a sales tax exemption for certain payments to auto dealers from manufacturers for family-plan-type discount transactions.

The substitute passed by voice vote

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

To tie-bar the bill to House Bills 5555 and 5556, meaning this bill cannot become law unless that one does also. Those bills would authorize the relevent sales and use tax exemptions.

The amendment passed by voice vote

Passed in the House 106 to 2 (details)

To revise the language of the law that authorizes Michigan's participation in the <a href="http://www.michiganvotes.org/2004-HB-5504">“Streamlined Sales Tax”</a> project being pursued by most states, so as to allow consideration received by an auto dealer from a manufacturer as reimbursement pursuant to a "family plan" type discount transaction to be exempted from sales tax.

Received in the Senate

Feb. 28, 2008

Referred to the Committee on Finance

Dec. 19, 2008

Passed in the Senate 31 to 0 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2008