September 13, 2005, Introduced by Reps. Robertson, Taub, Marleau, Green, David Law, Gosselin, Shaffer, Nitz, Baxter, Amos, Rocca, Hoogendyk, Gonzales, Garfield, Kahn and Vander Veen and referred to the Committee on Tax Policy.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 1 (MCL 205.51), as amended by 2004 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) As used in this act:
(a) "Person" means an individual, firm, partnership, joint
venture, association, social club, fraternal organization,
municipal or private corporation whether organized for profit or
not, company, estate, trust, receiver, trustee, syndicate, the
United States, this state, county, or any other group or
combination acting as a unit, and includes the plural as well as
the singular number, unless the intention to give a more limited
meaning is disclosed by the context.
(b) "Sale at retail" or "retail sale" means a sale, lease, or
rental of tangible personal property for any purpose other than for
resale, sublease, or subrent.
(c)
"Gross proceeds" means sales price. the following:
(i) Except as otherwise provided in subparagraph (ii), the sales
price.
(ii) If a motor vehicle is used as part payment in a taxable
sale at retail of another motor vehicle, the gross proceeds are the
difference between the agreed-upon value of the motor vehicle used
as part payment of the purchase price and the full retail price of
the motor vehicle being purchased.
(d) "Sales price" means the total amount of consideration,
including cash, credit, property, and services, for which tangible
personal property or services are sold, leased, or rented, valued
in money, whether received in money or otherwise, and applies to
the measure subject to sales tax. Sales price includes the
following subparagraphs (i) through (vi) and excludes subparagraphs
(vii) through (viii):
(i) Seller's cost of the property sold.
(ii) Cost of materials used, labor or service cost, interest,
losses, costs of transportation to the seller, taxes imposed on the
seller other than taxes imposed by this act, and any other expense
of the seller.
(iii) Charges by the seller for any services necessary to
complete the sale, other than the following:
(A) An amount received or billed by the taxpayer for
remittance to the employee as a gratuity or tip, if the gratuity or
tip is separately identified and itemized on the guest check or
billed to the customer.
(B) Labor or service charges involved in maintenance and
repair work on tangible personal property of others if separately
itemized.
(iv) Delivery charges incurred or to be incurred before the
completion of the transfer of ownership of tangible personal
property from the seller to the purchaser.
(v) Installation charges incurred or to be incurred before the
completion of the transfer of ownership of tangible personal
property from the seller to the purchaser.
(vi) Credit for any trade-in.
(vii) Interest, financing, or carrying charges from credit
extended on the sale of personal property or services, if the
amount is separately stated on the invoice, bill of sale, or
similar document given to the purchaser.
(viii) Any taxes legally imposed directly on the consumer that
are separately stated on the invoice, bill of sale, or similar
document given to the purchaser.
(e) "Business" includes an activity engaged in by a person or
caused to be engaged in by that person with the object of gain,
benefit, or advantage, either direct or indirect.
(f) "Tax year" or "taxable year" means the fiscal year of the
state or the taxpayer's fiscal year if permission is obtained by
the taxpayer from the department to use the taxpayer's fiscal year
as the tax period instead.
(g) "Department" means the department of treasury.
(h) "Taxpayer" means a person subject to a tax under this act.
(i) "Tax" includes a tax, interest, or penalty levied under
this act.
(j) "Textiles" means goods that are made of or incorporate
woven or nonwoven fabric, including, but not limited to, clothing,
shoes, hats, gloves, handkerchiefs, curtains, towels, sheets,
pillows, pillow cases, tablecloths, napkins, aprons, linens, floor
mops, floor mats, and thread. Textiles also include materials used
to repair or construct textiles, or other goods used in the rental,
sale, or cleaning of textiles.
(2) If the department determines that it is necessary for the
efficient administration of this act to regard an unlicensed
person, including a salesperson, representative, peddler, or
canvasser as the agent of the dealer, distributor, supervisor, or
employer under whom the unlicensed person operates or from whom the
unlicensed person obtains the tangible personal property sold by
the unlicensed person, irrespective of whether the unlicensed
person is making sales on the unlicensed person's own behalf or on
behalf of the dealer, distributor, supervisor, or employer, the
department may so regard the unlicensed person and may regard the
dealer, distributor, supervisor, or employer as making sales at
retail at the retail price for the purposes of this act.