USE TAX: PACKAGING                                                       H.B. 6068 (H-3): FLOOR ANALYSIS

House Bill 6068 (Substitute H-3 as reported without amendment) Sponsor: Representative Eric Bush

House Committee: Tax Policy Senate Committee: Finance

CONTENT

The bill would amend the Use Tax Act to exempt from the tax, beginning after 1996, shipping materials transferred and delivered with promotional merchandise that was transferred to a person outside Michigan who redeemed a promotional offer. Currently, promotional merchandise transferred pursuant to a redemption offer to a person located outside Michigan is exempt from the use tax.

MCL 205.94                                                                                       Legislative Analyst: G. Towne

FISCAL IMPACT

House Bills 6068 (H-3) and 6069 (H-3) would reduce sales and use tax revenue by less than $100,000 a year. This loss in revenue would be distributed as follows: 73% to School Aid Fund, 24% for revenue sharing, and 3% to the General Fund.

Date Completed: 12-10-96                                                                      Fiscal Analyst: J. Wortley

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This 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.