2007 House Bill 4383

FY 2008 Executive Budget “Revenue Enhancements”

Introduced in the House

March 1, 2007

Introduced by Rep. Tim Melton (D-29)

To repeal a use tax exemption on toll free phone services (800-numbers, WATTS lines, etc.) Also, to repeal the use tax exemption on cars sold to public or parochial school drivers education programs. 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. The telephone provision would increase the taxes paid by citizens approximately $22 million, and the drivers education car provision around $700,000.

Referred to the Committee on Tax Policy

April 12, 2007

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

April 17, 2007

Substitute offered

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

Passed in the House 58 to 51 (details)

To repeal a use tax exemption on toll free phone services (800-numbers, WATTS lines, etc.) Also, to repeal the use tax exemption on cars sold to public or parochial school drivers education programs. This is one of a number of “tax expenditure repeal” proposals proposed to pay for higher spending in the Fiscal Year 2007-2008 budget. The telephone provision would increase the taxes paid by citizens approximately $22 million, and the drivers education car provision around $700,000.

Received in the Senate

April 19, 2007

Referred to the Committee on Finance

Received in the House

June 7, 2007

Motion to reconsider by Rep. Steve Tobocman (D-12)

The vote by which the House passed the bill.

The motion passed by voice vote