DEFINITION OF "TAX" AND "FEE"
House Bill 4437
Sponsor: Rep. Robert Gosselin
Committee: Tax Policy
Complete to 8-31-01
A SUMMARY OF HOUSE BILL 4437 AS INTRODUCED 3-8-01
The bill would provide a definition of the terms "fee" and "tax" as those terms are used in the laws of the state. The bill would amend Chapter 1 of the Revised Statutes of 1846, entitled "Of the Statutes", which provides general rules of construction and basic definitions.
The term "fee" would mean a charge voluntarily exchanged for a service rendered or a benefit conferred, the amount of which charge bears a reasonable relationship to the value of the service rendered or benefit conferred and which charge serves a regulatory purpose rather than a revenue raising purpose.
The term "tax" would mean a charge or exaction that is imposed primarily for a public purpose rather than a private purpose and that is designed to raise revenue.
MCL 8.3x
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.