SALES TAX: VENDED BEVERAGES - S.B. 555: COMMITTEE SUMMARY
Senate Bill 555 (as introduced 4-29-99)
Sponsor: Senator Bev Hammerstrom
Committee: Finance
Date Completed: 5-3-99
CONTENT
The bill would amend the General Sales Tax Act to exempt from the tax sales of nonalcoholic beverages in a sealed container, sold from a vending machine or mobile facility. Currently, sales of carbonated beverages sold from a vending machine or mobile facility are taxable.
Under the Act, tax due on the sale of food or drink, from a vending machine that sells both taxable and tax-exempt items, must be calculated based on the actual gross proceeds from sales at retail; or the sum of the proceeds from carbonated beverage sales, plus 45% of the proceeds from the sale of taxable and tax-exempt items other than the sale of carbonated beverages. The bill would eliminate from the calculation the sum of proceeds from carbonated beverages. This means that, under the bill, tax due could be calculated by determining 45% of the proceeds from the sale of taxable and tax-exempt items other than the sale of carbonated beverages; or the tax could be based on actual gross proceeds.
MCL 205.54g - Legislative Analyst: G. Towne
FISCAL IMPACT
This bill would reduce sales tax revenue by an estimated $6.5 million in FY 1999-2000. Of this amount, 73% or $4.7 million would be lost to the School Aid Fund, 24% or $1.6 million would be lost to revenue sharing, and the remaining $0.2 million would be lost to the General Fund.
- Fiscal Analyst: J. WortleyS9900\s555sa
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.