A bill to amend 1937 PA 94, entitled “Use tax act,” by amending section 4k (MCL 205.94k), as amended by 2012 PA 429.
Senate Bill No. 886 aims to amend the 1937 Use Tax Act by exempting certain uses and sales of aircraft and aviation equipment from the use tax. Key provisions include:
Exemption for the use of aircraft by domestic air carriers if the aircraft has a maximum certificated takeoff weight of at least 6,000 pounds and is used solely for the transport of air cargo, passengers, or both. Exemption for the sale of parts or materials, excluding shop equipment or fuel, that are affixed or to be affixed to an aircraft. Exemption for the sale of an aircraft if it is not based or registered in Michigan after the sale and any prepurchase evaluation, customization, improvement, maintenance, or repair associated with the sale is completed. Exemption for the storage, use, or consumption of rolling stock used in interstate commerce and purchased, rented, or leased by an interstate fleet motor carrier. Definitions for terms such as "aircraft," "based in this state," "customization," "prepurchase evaluation," "qualified truck," and "rolling stock" are provided to clarify the scope of the exemptions. The bill also includes a provision to compensate for any revenue loss to the state school aid fund resulting from these exemptions, indicating the legislature's intent to annually appropriate sufficient funds from the state general fund to the state school aid fund.
Introduced
by
Referred to the Committee on Finance, Insurance, and Consumer Protection
