SENATE BILL NO. 555 April 29, 1999, Introduced by Senators HAMMERSTROM, YOUNG, MC COTTER, DUNASKISS, SHUGARS, STEIL, GOSCHKA, JOHNSON, BULLARD, DINGELL and ROGERS and referred to the Committee on Finance. A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 4g (MCL 205.54g), as amended by 1998 PA 60. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 4g. (1) A person subject to tax under this act may 2 exclude from the amount of the gross proceeds used for the compu- 3 tation of the tax 1 or more of the following: 4 (a) Sales of prescription drugs for human use or food for 5 human consumption, except prepared food intended for immediate 6 consumption. 7 (b) The deposit on a returnable container for a beverage or 8 the deposit on a carton or case that is used for returnable 9 containers. 10 (c) Food or tangible personal property purchased with 11 federal food stamps. 02028'99 CSC 2 1 (d) Fruit or vegetable seeds and fruit or vegetable plants 2 if purchased at a place of business authorized to accept food 3 stamps by the food and nutrition service of the United States 4 department of agriculture or a place of business that has made a 5 complete and proper application for authorization to accept food 6 stamps but has been denied authorization and provides proof of 7 denial to the department of treasury. 8 (e) The product of the out-of-state usage percentage and the 9 gross proceeds otherwise taxable under this act from the sale of 10 a qualified truck or a trailer designed to be drawn behind a 11 qualified truck, purchased after December 31, 1996 and before 12 May 1, 1999 by an interstate motor carrier and used in interstate 13 commerce. As used in this subdivision: 14 (i) "Interstate motor carrier" means a person engaged in the 15 business of carrying persons or property, other than themselves, 16 their employees, or their own property, for hire across state 17 lines, whose fleet mileage was driven at least 10% outside of 18 this state in the immediately preceding tax year. 19 (ii) "Out-of-state usage percentage" is a fraction, the 20 numerator of which is the number of miles driven outside of this 21 state in the immediately preceding tax year by qualified trucks 22 used by the interstate motor carrier and the denominator of which 23 is the total miles driven in the immediately preceding tax year 24 by qualified trucks used by the interstate motor carrier. Miles 25 driven by qualified trucks used solely in intrastate commerce 26 shall not be included in calculating the out-of-state usage 27 percentage. 02028'99 3 1 (iii) "Qualified truck" means a commercial motor vehicle 2 power unit that has 2 axles and a gross vehicle weight rating in 3 excess of 10,000 pounds or a commercial motor vehicle power unit 4 that has 3 or more axles. 5 (2) "Prescription drugs for human use" means insulin or a 6 drug dispensed by a licensed pharmacist pursuant to a written 7 prescription prescribed by a licensed physician or other health 8 professional as defined by section 21005 of the public health 9 code, 1978 PA 368, MCL 333.21005, for the use of a designated 10 person, or oxygen dispensed pursuant to a written prescription or 11 order issued by a licensed physician or other health professional 12 as defined in section 21005 of the public health code, 1978 PA 13 368, MCL 333.21005. 14 (3) "Food for human consumption" means all food and drink 15 items, including bottled water, intended primarily for human con- 16 sumption except beverages with an alcohol content of 1/2 of 1% or 17 more by volume, tobacco and tobacco products, and prepared food 18 intended for immediate consumption. Food for human consumption 19 includes live animals purchased with the intent to be slaughtered 20 for human consumption. 21 (4) "Prepared food intended for immediate consumption" means 22 a retail sale of 1 or more of the following: 23 (a) Food or drink prepared and served for immediate consump- 24 tion at or near the premises or ordinarily sold on a takeout 25 basis for immediate consumption either on or off the premises. 26 For the purposes of this section premises includes the total 27 space and facilities in or on which a retailer conducts his or 02028'99 4 1 her business, including, but not limited to, parking areas for 2 the convenience of in-car consumption, outdoor tables, benches, 3 chairs, and similar conveniences. 4 (b) Food or drink furnished, prepared, or served for immedi- 5 ate consumption at a table, chair, or counter or from a tray, 6 glass, dish, container, or other tableware. 7 (c) Food or drink arranged on a plate or platter, whether 8 intended for individual or multiple servings and whether sold by 9 the pound or by the serving; a sandwich, either hot or cold; or a 10 combination of taxable and nontaxable items when sold as a plate 11 or packaged as a meal, even though intended for more than 1 12 serving. 13 (d) Food that is cooked to the order of the purchaser, or 14 that is cooked and maintained at a temperature higher than the 15 surrounding air temperature before sale, or prepared food that is 16 sold by the piece rather than by weight or measure. 17 (e)After December 31, 1994, carbonated beverages sold from18a mobile facility or vending machine, or foodFOOD or drink 19 heated or cooled mechanically, electrically, or by other artifi- 20 cial means to an average temperature above 75 degrees fahrenheit 21 or below 65 degrees fahrenheit before sale and sold from a mobile 22 facility or vending machine, except milk,noncarbonated bever-23ages containing 10% or more juice contentNONALCOHOLIC BEVERAGES 24 IN A SEALED CONTAINER, and fresh fruit.A refund shall not be25made for any taxes paid after December 31, 1994 and before26January 16, 1997 for food or drink otherwise exempt under this27subdivision.The tax due under this act on the sale of food or 02028'99 5 1 drink from a vending machine selling both taxable items and items 2 exempt under this subsection shall be calculated under this act 3 after December 31, 1994 based on 1 of the following as determined 4 by the taxpayer: 5 (i) Actual gross proceeds from sales at retail. 6 (ii)The sum of proceeds from carbonated beverages and 45%7 FORTY-FIVE PERCENT of proceeds from the sale of items subject to 8 tax under this act or exempt from the tax levied under this act, 9 other than from the sale of carbonated beverages. 10 (5) Prepared food intended for immediate consumption does 11 not include bakery products for off-premises consumption, such as 12 doughnuts, pastry, bread, and cakes or meals eligible to be pur- 13 chased with federal food stamps. 02028'99 Final page. 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