HOUSE BILL No. 4507
March 22, 2001, Introduced by Reps. DeVuyst, Patterson, Howell, Bishop, Sheltrown, Sanborn, Richardville, Birkholz and Richner and referred to the Committee on Tax Policy. A bill to amend 1937 PA 94, entitled "Use tax act," by amending section 5 (MCL 205.95). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 5. (a) Every EXCEPT AS OTHERWISE PROVIDED IN THIS 2 SUBSECTION, EVERY person when engaged in the business of sell- 3 ing tangible personal property for storage, use, or other con- 4 sumption in this state , shall register with the department and 5 give the name and address of each agent operating in this state, 6 the location of any and all distribution or sales houses or 7 offices , or other places of business in this state, and such 8 ANY other information as THAT the department may require 9 REQUIRES with respect to matters pertinent to the enforcement of 10 this act. , but it shall not be necessary for a A seller 11 holding a SALES TAX license obtained pursuant to the provisions 02954'01 MRM 2 1 of Act No. 167 of the Public Acts of 1933, as amended GENERAL 2 SALES TAX ACT, 1933 PA 167, MCL 205.51 TO 205.78, to register 3 with the department as provided in this act. Every such seller 4 shall collect the tax imposed by this act from the consumer. 5 (b) The corporation, and securities commission SECURITIES, 6 AND LAND DEVELOPMENT BUREAU OF THE DEPARTMENT OF CONSUMER AND 7 INDUSTRY SERVICES shall not issue to any foreign corporation 8 engaged in the business of selling tangible personal property a 9 certificate of authority to do business in this state or approve 10 and file the proposed articles of incorporation submitted to it 11 by any domestic corporation authorizing or permitting such corpo- 12 ration to conduct any business of selling of tangible personal 13 property unless such corporations shall submit THE CORPORATION 14 SUBMITS with an THE application for said THE certificate of 15 authority or proposed articles of incorporation, an application 16 for registration of said THE corporation under the provisions 17 of this act , or an application for A SALES TAX license under 18 the provisions of Act No. 167 of the Public Acts of 1933, as 19 amended THE GENERAL SALES TAX ACT, 1933 PA 167, MCL 205.51 TO 20 205.78, which application shall be transmitted to the department 21 by said THE corporation, and securities, commission AND 22 LAND DEVELOPMENT BUREAU OF THE DEPARTMENT OF CONSUMER AND INDUS- 23 TRY SERVICES. 24 (C) The corporation, and securities commission SECURITIES, 25 AND LAND DEVELOPMENT BUREAU OF THE DEPARTMENT OF CONSUMER AND 26 INDUSTRY SERVICES shall withhold the issuance of any certificate 27 of dissolution or withdrawal in the case of any corporation 02954'01 3 1 organized under the laws of this state or organized under the 2 laws of another state and admitted to do business in this state 3 until the receipt of a notice from the department to the effect 4 that all taxes levied under this act against any such THAT cor- 5 poration have been paid, or until it shall be IS notified by 6 the department that the applicant is not indebted for any taxes 7 levied hereunder DOES NOT OWE TAXES LEVIED UNDER THIS ACT. 8 (D) A LESSOR MAY ELECT TO PAY USE TAX ON RECEIPTS FROM THE 9 RENTAL OR LEASE OF THE TANGIBLE PERSONAL PROPERTY IN LIEU OF PAY- 10 MENT OF SALES OR USE TAX ON THE FULL COST OF THE PROPERTY AT THE 11 TIME IT IS ACQUIRED. FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 12 1999, IN ORDER TO MAKE A VALID ELECTION UNDER THIS SUBSECTION, A 13 LESSOR OF TANGIBLE PERSONAL PROPERTY THAT IS NOT AN AIRCRAFT, 14 WATERCRAFT, OR SNOWMOBILE AND THAT MAKES THE ELECTION TO PAY 15 SALES OR USE TAX ON RECEIPTS FROM THE LEASE OR RENTAL OF TANGIBLE 16 PERSONAL PROPERTY SHALL OBTAIN A USE TAX REGISTRATION BEFORE 17 ACQUIRING THE TANGIBLE PERSONAL PROPERTY. FOR TAX YEARS THAT 18 BEGIN AFTER DECEMBER 31, 1999 AND BEFORE JANUARY 1, 2002, IN 19 ORDER TO MAKE A VALID ELECTION UNDER THIS SUBSECTION, A LESSOR OF 20 TANGIBLE PERSONAL PROPERTY THAT IS AN AIRCRAFT, WATERCRAFT, OR 21 SNOWMOBILE SHALL OBTAIN A USE TAX REGISTRATION WITHIN 90 DAYS 22 AFTER THE LESSOR FIRST BRINGS THE AIRCRAFT, WATERCRAFT, OR SNOW- 23 MOBILE INTO THIS STATE. FOR TAX YEARS THAT BEGIN AFTER DECEMBER 24 31, 2001, IN ORDER TO MAKE A VALID ELECTION UNDER THIS SUBSEC- 25 TION, A LESSOR OF TANGIBLE PERSONAL PROPERTY THAT IS AN AIRCRAFT, 26 WATERCRAFT, OR SNOWMOBILE SHALL OBTAIN A USE TAX REGISTRATION BY 27 THE EARLIER OF THE DATE SET FOR THE FIRST PAYMENT OF USE TAX 02954'01 4 1 UNDER THE LEASE OR RENTAL AGREEMENT OR 90 DAYS AFTER THE LESSOR 2 FIRST BRINGS THE AIRCRAFT, WATERCRAFT, OR SNOWMOBILE INTO THIS 3 STATE. WITHIN 30 DAYS AFTER A TAXPAYER OBTAINS A USE TAX REGIS- 4 TRATION, THE DEPARTMENT SHALL PROVIDE THE TAXPAYER WITH A WRITTEN 5 NOTICE ADVISING THE TAXPAYER OF THE RIGHT TO MAKE AN ELECTION 6 UNDER THIS SUBSECTION AND THE REQUIREMENTS TO MAKE A VALID ELEC- 7 TION UNDER THIS SUBSECTION. 02954'01 Final page. MRM