2007 Senate Bill 881 / 2008 Public Act 556

Clarify “extractive use” for timber tax exemption

Introduced in the Senate

Nov. 6, 2007

Introduced by Sen. Michelle McManus (R-35)

To exempt from sales tax material sold to a timber producer for use in transporting timber from the point of extraction to a place of temporary storage at the extraction site, and then to the vehicle or other equipment used to remove it from the extraction site. Current law exempts from the tax “all necessary processing operations before shipment from the place of extraction,” and the bill provides a more explicit definition of this.

Referred to the Committee on Finance

June 17, 2008

Reported without amendment

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

June 18, 2008

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

June 19, 2008

Passed in the Senate 36 to 0 (details)

Received in the House

June 19, 2008

Referred to the Committee on Tax Policy

Dec. 10, 2008

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 19, 2008

Substitute offered by Rep. Mary Valentine (D-91)

The substitute passed by voice vote

Substitute offered by Rep. Steve Tobocman (D-12)

To replace the previous version of the bill with one that exempts from sales tax materials used in repairs or improvements to a regional convention facility including Cobo Hall. See also Senate Bill 1630.

The substitute passed by voice vote

Amendment offered by Rep. Steve Tobocman (D-12)

To revise details of the law that requires sales tax prepayment by purchasers of fuel from a refiner, pipeline terminal operator, or marine terminal operator.

The amendment passed by voice vote

Passed in the House 71 to 22 (details)

Received in the Senate

Dec. 19, 2008

To exempt from sales tax material materials used in repairs or improvements to a regional convention facility including Cobo Hall, and also materials sold to a timber producer for use in transporting timber from the point of extraction to a place of temporary storage at the extraction site, and then to the vehicle or other equipment used to remove it from the extraction site.

Passed in the Senate 28 to 3 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2008