HOUSE BILL No. 4590


     April 17, 2001, Introduced by Reps. Caul, DeVuyst, Cassis, Birkholz, Switalski, Kooiman, Rocca, Drolet, Howell, Sanborn,
Toy, Wojno and Richner and referred to the Committee on Tax Policy.


        A bill to amend 1937 PA 94, entitled

   "Use tax act,"

   (MCL 205.91 to 205.111) by adding section 4t.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 4T.  (1) THE TAX LEVIED UNDER THIS ACT DOES NOT APPLY

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      TO THE PURCHASE OF AN ARTICLE OF CLOTHING OR FOOTWEAR, TO BE WORN

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      ON AN INDIVIDUAL, WITH A PURCHASE PRICE OF $150.00 OR LESS IF THE

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      PURCHASE IS MADE DURING THE PERIOD OF 7 DAYS BEFORE LABOR DAY AND

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      7 DAYS AFTER LABOR DAY.

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           (2) THE EXEMPTION PROVIDED FOR IN SUBSECTION (1) DOES NOT

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      APPLY TO JEWELRY OR TO ACCESSORIES, OTHER THAN BELTS, NECKWEAR,

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      AND HEAD SCARVES.

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           (3) ON DECEMBER 31 OF EACH YEAR, THE STATE TREASURER SHALL

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      ESTIMATE THE AMOUNT OF USE TAX THAT WAS NOT COLLECTED BECAUSE OF

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      THIS EXEMPTION, AND SHALL TRANSFER FROM THE GENERAL FUND TO THE


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      STATE SCHOOL AID FUND THAT AMOUNT THAT WOULD HAVE OTHERWISE GONE

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      TO THE STATE SCHOOL AID FUND.

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           (4) THE DEPARTMENT SHALL POST INFORMATION ON THE STATE WEB-

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      SITE ON THE INTERNET REGARDING THIS EXEMPTION.
















































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