H.B. 4743: FLOOR ANALYSIS - CHURCH CONSTRUCTION EXEMPTION

House Bill 4743 (Substitute H-1 as reported without amendment)

Sponsor: Representative Kirk Profit

House Committee: Tax Policy

Senate Committee: Finance


CONTENT


The bill would amend the Use Tax Act to exempt from the use tax tangible personal property purchased by a person engaged in the business of constructing, altering, repairing, or improving real estate for others, if the property were to be affixed to or made a structural part of real estate owned or occupied by a regularly organized church or house of religious worship. At the time of the transfer of property for which an exemption was claimed, the transferee would have to sign an affidavit, in a form approved by the Department of Treasury, attesting to the fact that the property was to be affixed to or made a structural part of real estate owned or occupied by a church or house of religious worship.


The bill is tie-barred to House Bill 4163, which would amend the Sales Tax Act.


Proposed MCL 205.94m - Legislative Analyst: G. Towne


FISCAL IMPACT


Based on data from the U.S. Bureau of the Census, the estimated loss in use tax collections would be on average $1 million per year.


Date Completed: 5-13-98 - Fiscal Analyst: R. RossFLOOR\HB4743 - Analysis available @ http://www.michiganlegislature.org

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.