SB-0143, As Passed Senate, June 30, 2004                                    

    SUBSTITUTE FOR

    SENATE BILL NO. 143

(As amended, June 30, 2004)                                                 

                                                                             A bill to amend 1937 PA 94, entitled                                              

"Use tax act,"                                                              

(MCL 205.91 to 205.111) by adding section 4y.                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 4y.  (1) Beginning January 1, 2005, the tax under this                 

2   act does not apply to a transfer of a motor vehicle without                 

3   consideration from an organization exempt under section 501(c)(3)           

4   of the internal revenue code of 1986 and licensed under the                 

5   charitable organizations and solicitations act, 1975 PA 169, MCL            

6   400.271 to 400.294, to a qualified recipient.  This exemption               

7   does not apply to the transfer if the transfer of the motor                 

8   vehicle is made to a for-profit entity.                                     

9   (2) As used in this section, "qualified recipient" means an                 

10  individual certified by the organization as meeting all of the              

11   following qualifications:

    <<(a) Before October 1, 2005, all of the following qualifications:>>

Senate Bill No. 143 as amended June 30, 2004                                

1       <<(i)>> The individual receives or, if he or she applied, would             

2   be eligible to receive public assistance through a program                  

3   created and administered under the social welfare act, 1939 PA              

4   280, MCL 400.1 to 400.119b.                                                 

5       <<(ii)>> The individual has a valid Michigan operator's or                   

6   chauffeur's license.                                                        

7       <<(iii)>> Public transportation is not reasonably available to the           

8   individual, the individual has no other reliable means by which             

9   to commute to his or her place of employment, and the individual            

10  will use the eligible vehicle as his or her primary means of                

11  transportation to commute to and from his or her place of                   

12  employment.                                                                 

13      <<(iv)>> If the individual is currently employed for not less than           

14  an average of 20 hours per week, the individual requires an                 

15  automobile to retain his or her current employment or to accept a           

16  verified offer of employment in a position that is demonstrably             

17  superior to his or her current position of employment.                      

18      <<(v)>> If the individual is not currently employed or is                   

19  employed for less than an average of 20 hours per week, the                 

20  individual requires an automobile to accept a verified offer of             

21  employment of not less than an average of 20 hours per week and             

22   cannot begin employment in that position without an automobile.

  <<(b) After September 30, 2005, all of the following qualifications:

  (i)  The individual receives or, if he or she applied, would be eligible to receive public assistance through a program created and administered under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, or the individual has a total household income below 200% of the federal poverty guidelines updated annually in the federal register of the United States department of health and human services.

    (ii) The individual has a valid Michigan operator's or chauffeur's license.>>