USE TAX: DUST CONTROL - H.B. 4691 (H-2): FLOOR ANALYSIS


House Bill 4691 (Substitute H-2 as passed by the House)

Sponsor: Representative Scott Shackleton

House Committee: Tax Policy


CONTENT


The bill would amend the Use Tax Act to exempt from the tax the storage, use, or consumption of dust control chemicals purchased by a person who had a service contract with a local governmental unit to spread the chemicals on gravel roads within that unit; or purchased by a local organization or neighborhood association that had received approval from the local unit to spread the dust control chemicals within that organization's or association's area.


The bill provides that it would be effective for taxes levied after May 29, 1990.


Proposed MCL 205.94t - Legislative Analyst: G. Towne


FISCAL IMPACT


The bill would reduce use tax revenue by $1.7 million, which would reduce School Aid Fund revenue by $0.7 million and General Fund/General Purpose revenue by $1.0 million.


Date Completed: 6-10-99 - Fiscal Analyst: R. Ross



floor\hb4691 - Analysis available @ http://www.michiganlegislature.org

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.