A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending sections 1 and 25 (MCL 205.51 and 205.75), section 1 as amended by 2018 PA 2 and section 25 as amended by 2021 PA 108.
This bill proposes amendments to the 1933 PA 167, known as the "General sales tax act." The bill aims to update and clarify definitions and provisions related to sales tax, including terms such as "person," "sale at retail," "gross proceeds," and "sales price," specifying what is included and excluded in the sales price calculation. It addresses considerations for delivery and installation charges, trade-in credits, and third-party considerations, and outlines specific exclusions like interest, financing charges if separately stated, and taxes imposed directly on the consumer. The bill also details the distribution of tax collections, allocating revenue to various funds including cities, villages, townships, the state school aid fund, the comprehensive transportation fund, the state aeronautics fund, the qualified airport fund, and the Michigan health initiative fund. It includes provisions for annual reconciliation and reporting for transparency and accountability, and specifies that certain exclusions, such as delivery or installation charges, must be reported to determine the impact on the state school aid fund. The bill is intended to clarify the current status of the law, is remedial in nature, and applies to civil actions pending on its effective date.
Introduced
by
Referred to the Committee on Finance, Insurance, and Consumer Protection
