SALES TAX EXEMPTION FOR PRISONERS H.B. 4658:
COMMITTEE SUMMARY
[Please see the PDF version of this analysis, if available, to view this image.]
House Bill 4658 (as passed by the House)
Sponsor: Representative Anthony G. Forlini
House Committee: Tax Policy
Senate Committee: Finance
Date Completed: 3-6-12
CONTENT
The bill would amend the General Sales Tax Act to set an October 1, 2012, expiration date on the exemption for sales to inmates. This exemption applies to the purchase of personal property by an inmate of a penal or correctional institution with scrip or its equivalent issued and redeemed by the institution.
MCL 205.54a Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill would increase sales tax revenue by approximately $0.5 million per year. Slightly more than 73% of sales tax revenue is earmarked to the School Aid Fund, while local units of government receive 10% of sales tax revenue through constitutional revenue sharing. As a result, School Aid Fund revenue would increase by approximately $366,500 per year and local unit revenue would rise by approximately $50,000 per year. The balance would go to the State's General Fund.
Fiscal Analyst: David Zin
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. hb4658/1112