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.]