HB-4380, As Passed House, February 27, 2008
SUBSTITUTE FOR
HOUSE BILL NO. 4380
A bill to amend 2004 PA 175, entitled
"Streamlined sales and use tax revenue equalization act,"
(MCL 205.171 to 205.191) by adding section 12.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) For a transaction occurring after December 31,
1999, a taxpayer may calculate a credit and seek a refund from the
department under this act in an amount equal to 6% of the
consideration received by that taxpayer from an automobile
manufacturer to reimburse that taxpayer for a discount or price
reduction given on the sale of a motor vehicle to a member of a
group designated by an automobile manufacturer as entitled to a
price identified on the automobile manufacturer’s invoice to the
automobile dealer that the automobile manufacturer requires the
House Bill No. 4380 (H-3) as amended February 27, 2008
automobile dealer to charge that vehicle purchaser, if all of the
following conditions are met:
(a) The motor vehicle purchaser was not employed by that
automobile manufacturer at the time the discount or price reduction
was given.
(b) The taxpayer calculating the credit and seeking the refund
did not reimburse himself or herself by adding sales tax on that
portion of the sales price received from an automobile
manufacturer.
(c) The amount of the credit or refund does not exceed the
actual amount of sales tax paid on that portion of the sales price
received from an automobile manufacturer by the taxpayer
calculating the credit and seeking the refund.
(2) At the option of the taxpayer, the credit and refund
provided in this section may be applied to reduce the sales tax due
and the procedures implementing those sales tax payment
obligations.
[Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 94th Legislature are enacted into law:
(a) House Bill No. 5555.
(b) House Bill No. 5556.]