HOUSE BILL No. 5031


     July 9, 1997, Introduced by Rep. Agee and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1997 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1997 TAX YEAR, A QUALIFIED TAXPAYER MAY CLAIM A CREDIT

 3    AGAINST THE TAX IMPOSED BY THIS ACT EQUAL TO $20.00 FOR A SINGLE

 4    RETURN OF A QUALIFIED TAXPAYER IF THE QUALIFIED TAXPAYER HAS

 5    ADJUSTED GROSS INCOME OF $20,000.00 OR LESS, OR $40.00 FOR A

 6    JOINT RETURN IF BOTH TAXPAYERS ON THE JOINT RETURN ARE QUALIFIED

 7    TAXPAYERS AND HAVE COMBINED ADJUSTED GROSS INCOME OF $40,000.00

 8    OR LESS.

 9         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

10    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE




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 1    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE REFUNDED TO

 2    THE TAXPAYER.

 3         (3) AS USED IN THIS SECTION:

 4         (A) "MOTOR VEHICLE" MEANS THAT TERM AS DEFINED IN THE

 5    MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 257.1 TO 257.923.

 6         (B) "QUALIFIED TAXPAYER" MEANS A PERSON WHO MEETS ALL OF THE

 7    FOLLOWING CRITERIA:

 8         (i) IS A RESIDENT OF THIS STATE.

 9         (ii) HAS A VALID MICHIGAN DRIVER LICENSE.

10         (iii) HAS A MOTOR VEHICLE THAT IS REGISTERED IN THIS STATE

11    AND THAT HE OR SHE HAS DRIVEN AT LEAST 10,000 MILES DURING THE

12    TAX YEAR.

13         (iv) HAS PURCHASED THE SECURITY REQUIRED FOR MOTOR VEHICLES

14    UNDER SECTION 3101 OF THE INSURANCE CODE OF 1956, 1956 PA 218,

15    MCL 500.3101.

16         Enacting section 1.  This amendatory act does not take

17    effect unless Senate Bill No. _____ or House Bill No. _____

18    (request no. 02746'97) of the 89th Legislature is enacted into

19    law.



















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