2005 House Bill 4980 / Public Act 224

Repeal sales tax exemption on prison store purchases

Introduced in the House

June 21, 2005

Introduced by Rep. Rick Jones (R-71)

To repeal a sales tax exemption on merchandise purchased by prison inmates in prison stores. This would cost prisoners approximately $700,000 each year.

Referred to the Committee on Tax Policy

Aug. 31, 2005

Reported without amendment

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

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Fulton Sheen (R-88)

To tie-bar the bill to the other business tax cut and tax exemption repeal bills in the package, meaning this bill cannot become law unless those ones do also. Specifically, these are House Bills 4972, 4973, 5095, 5097, 5098, 5106, 5107, and 5108.

The amendment passed by voice vote

Passed in the House 98 to 3 (details)

Received in the Senate

Sept. 6, 2005

Referred to the Committee on Finance

Oct. 25, 2005

Substitute offered

To replace the previous version of the bill with one that makes it part of a business tax cut proposal offered by Senate Majority Leader Ken Sikkema as an alternative to a <a href="http://www.michiganvotes.org/RollCall.aspx?ID=173410">larger tax cut passed by the House</a>. This is linked to <a href="http://www.michiganvotes.org/2005-SB-633">Senate Bill 633</a>, which would cut the SBT rate from 1.9 percent to 1.84 percent.

The substitute passed by voice vote

Passed in the Senate 35 to 1 (details)

To repeal a sales tax exemption on merchandise purchased by prison inmates in prison stores. This would cost prisoners approximately $700,000 each year.

Received in the House

Oct. 25, 2005

Nov. 10, 2005

Substitute offered

To replace the previous version of the bill with one that makes very minor changes to reflect the agreement struck between Gov. Jennifer Granholm and Republican legislative leaders to adopt modest business tax cuts and a scaled-down "21st Century Jobs Fund".

The substitute passed by voice vote

Amendment offered by Rep. Fulton Sheen (R-88)

To not link the bill to Senate Bill 634, which would eliminate the weighting or apportionment of in-state payroll and property in the formula used to calculate a firm's Single Business Tax liability, and base the liability 100 percent on sales.

The amendment passed by voice vote

Passed in the House 105 to 0 (details)

To repeal a sales tax exemption on merchandise purchased by prison inmates in prison stores. This would cost prisoners approximately $700,000 each year.

Received in the Senate

Nov. 10, 2005

Passed in the Senate 36 to 2 (details)

Signed by Gov. Jennifer Granholm

Nov. 21, 2005