HOUSE BILL No. 4971


     June 25, 1997, Introduced by Reps. Perricone, Palamara, DeHart, Kelly, Schermesser and Dobronski and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   (MCL 205.51 to 205.78) by adding section 4p.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4P.  A PERSON SUBJECT TO TAX UNDER THIS ACT MAY EXCLUDE

 2    FROM THE GROSS PROCEEDS USED FOR THE COMPUTATION OF THE TAX THE

 3    SALE OF TANGIBLE PERSONAL PROPERTY PURCHASED BY A PERSON ENGAGED

 4    IN THE BUSINESS OF CONSTRUCTING, ALTERING, REPAIRING, OR IMPROV-

 5    ING REAL ESTATE FOR OTHERS IF THE PROPERTY IS MATERIAL, EQUIP-

 6    MENT, OR SUPPLIES USED OR CONSUMED IN CONSTRUCTING, OR INCORPO-

 7    RATED INTO THE CONSTRUCTION OF, A HEAVY MAINTENANCE FACILITY FOR

 8    AIRCRAFT THAT IS OR WILL BE OWNED BY THIS STATE OR A LOCAL GOV-

 9    ERNMENTAL UNIT AND LEASED BY AN AIRLINE COMPANY OR AN AIRCRAFT

10    ENGINE REPAIR COMPANY.  THIS EXEMPTION ALSO INCLUDES ALL

11    MACHINERY, EQUIPMENT, AND TOOLS NECESSARY FOR CONSTRUCTING AND


   03935'97                                                 CSC
                                              2

 1    EQUIPPING THAT FACILITY EXCEPT FOR EQUIPMENT OWNED OR LEASED BY A

 2    CONTRACTOR.




















































   03935'97          Final page.                            CSC