HOUSE BILL No. 5140

 

August 29, 2007, Introduced by Reps. Palmer, Knollenberg, Acciavatti, Sheen, Elsenheimer, LaJoy, David Law, Casperson, Opsommer, Emmons, Robertson, Hildenbrand, Marleau, Meltzer, Stahl, Pastor, Moolenaar, Walker, Stakoe, Rick Jones, Hune, Gaffney, Steil, Meekhof, Hoogendyk, Moss, Agema, Hansen and Horn 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 4ff.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4ff. (1) Subject to subsection (2), a person subject to

 

the tax under this act may exclude from the gross proceeds used for

 

the computation of the tax the sale of any of the following items

 

if the sale is made between 12:01 a.m. on the fourth Friday in

 

August and 11:59 p.m. the following Sunday each year:

 

     (a) Clothing if the sales price of each individual item is not

 

greater than $100.00.

 

     (b) School supplies if the sales price of each individual item

 

is not greater than $50.00.

 

     (c) Computer software if the sales price of each individual

 


item is not greater than $350.00.

 

     (d) Computers, including accessories, if the sales price of

 

each individual item is not greater than $3,500.00.

 

     (2) The exemption in subsection (1) does not apply to the

 

following:

 

     (a) Clothing accessories or equipment.

 

     (b) Sport or recreational equipment.

 

     (c) Any item sold for use in a trade or business.

 

     (d) Electronic entertainment equipment, including, but not

 

limited to, television or stereo equipment, a video cassette

 

recorder or player, or a digital video disc recorder or player.

 

     (3) As used in this section:

 

     (a) "Clothing" means all human wearing apparel suitable for

 

general use, including, but not limited to, coats, jackets, hats,

 

hosiery, scarves, shoes, or cloth and other materials used to make

 

school uniforms.

 

     (b) "Clothing accessories or equipment" means incidental items

 

worn on the person or in conjunction with clothing, including, but

 

not limited to, jewelry, handbags, handkerchiefs, umbrellas,

 

scarves, ties, watchbands, or watches.

 

     (c) "Sport or recreational equipment" means items designed for

 

human use and worn in conjunction with an athletic or recreational

 

activity that are not suitable for general use. Sport or

 

recreational equipment includes, but is not limited to, ballet

 

shoes, cleated athletic shoes, shin guards, and ski boots.