2005 House Bill 5106 / Public Act 230

Repeal prison and drivers-ed car sales tax exemptions

Introduced in the House

Aug. 24, 2005

Introduced by Rep. Paul Condino (D-35)

To repeal the sales tax exemptions for cars sold to public or parochial school drivers education programs, and to goods sold to prisoners in a prison stores.

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

To not include the prison store sale tax provision in the bill.

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, 4980, 5095, 5097, 5098, 5107, and 5108.

The amendment passed by voice vote

Passed in the House 57 to 50 (details)

To repeal the sales tax exemptions for cars sold to public or parochial school drivers education programs. The bill is part of tax revision package that trades off tax cuts with certain increased tax levies and other measures to create a net business tax cut. See House Bill 5108.

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 21 to 16 (details)

To repeal the sales tax exemptions for cars sold to public or parochial school drivers education programs. The bill is part of tax revision package that trades off tax cuts with certain increased tax levies and other measures to create a net business tax cut. See Senate Bill 633.

Received in the House

Oct. 25, 2005

Nov. 10, 2005

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

To replace the previous version of the bill with one with very minor changes reflecting 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." See House-passed version for details.

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

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

To clarify references in the bill to other statutes.

The amendment passed by voice vote

Passed in the House 58 to 47 (details)

To repeal the sales tax exemptions for cars sold to public or parochial school drivers education programs. This is part of an agreement struck between Gov. Jennifer Granholm and Republican legislative leaders on <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176636">modest business tax cuts</a> and <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176597">subsidies for selected businesses</a>.

Received in the Senate

Nov. 10, 2005

Amendment offered by Sen. Nancy Cassis (R-15)

To clarify references in the bill to other statutes.

The amendment passed by voice vote

Passed in the Senate 22 to 16 (details)

To repeal the sales tax exemptions for cars sold to public or parochial school drivers education programs. This is part of an agreement struck between Gov. Jennifer Granholm and Republican legislative leaders on <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176636">modest business tax cuts</a> and <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176597">subsidies for selected businesses</a>.

Received in the House

Nov. 10, 2005

To concur with the very minor Senate-passed version of the bill.

Passed in the House 57 to 48 (details)

Signed by Gov. Jennifer Granholm

Nov. 21, 2005