HOUSE BILL No. 5212


     October 16, 2001, Introduced by Reps. Richardville, Vear, Wojno, Koetje, Cassis, Drolet, Gosselin, Birkholz, Basham, Pappageorge, Raczkowski,
Hummel, Mead, Shackleton, Newell, Allen, Meyer, Kowall, Woronchak, Toy, Godchaux, Faunce, O'Neil, Minore, Hale, Hart, Hager, Van Woerkom and
Bovin and referred to the Committee on Tax Policy.


        A bill to amend 1937 PA 94, entitled

   "Use tax act,"

   by amending section 14 (MCL 205.104), as amended by 1986 PA 41.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec.  14.  A person in the business of selling tangible per-

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      sonal property and liable for any tax imposed under this act

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      shall keep accurate and complete beginning and annual inventory

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      and purchase records of additions to inventory, complete daily

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      sales records, receipts, invoices, bills of lading,  and any  and

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      all pertinent documents in a form the department  may require

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      REQUIRES.  If an exemption from  this  USE tax is claimed  by

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      reason of any  BECAUSE of the exemptions or deductions granted

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      under this act, a record shall be kept of the name and address of

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      the person to whom the sale is made, the date of the sale, the

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      article purchased, the use to be made of the article, and the


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      amount of the sale, and if that person has a sales tax license

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      issued under  the provisions of  the general sales tax act,  Act

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      No.  167 of the Public Acts of 1933, as amended being sections

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      205.51 to 205.78 of the Michigan Compiled Laws, that number shall

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      also be included.  Any  1933 PA 167, MCL 205.51 TO 205.78, THE

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      SALES TAX LICENSE NUMBER.  IF A TAXPAYER MAINTAINS THE RECORDS

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      REQUIRED UNDER THIS SECTION, AND ACCEPTS AN EXEMPTION CERTIFICATE

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      FROM THE BUYER IN GOOD FAITH ON A FORM PRESCRIBED BY THE DEPART-

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      MENT, THE TAXPAYER IS NOT LIABLE FOR COLLECTION OF THE UNPAID TAX

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      AFTER A FINDING THAT THE SALE DID NOT QUALIFY FOR EXEMPTION UNDER

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      THIS ACT.  AS USED IN THIS SECTION, "GOOD FAITH" MEANS THAT THE

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      TAXPAYER RECEIVED A COMPLETED AND SIGNED EXEMPTION CERTIFICATE

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      FROM THE BUYER.  A person knowingly making a sale of tangible

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      personal property for the purpose of resale at retail to another

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      person not licensed under  Act No.  167 of the Public Acts of

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      1933, as amended, shall be  THE GENERAL SALES TAX ACT, 1933

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      PA 167, MCL 205.51 TO 205.78, IS liable for the tax imposed by

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      this act unless the transaction is exempt under the provisions of

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      section  4h  4I.  These records must be kept for a period of 4

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      years after the tax imposed under this act to which the records

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      apply is due or as otherwise provided by law.  If the department

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      considers it necessary, the department may require any person, by

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      notice served upon that person, to make a return, render under

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      oath certain statements, or keep certain records the department

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      considers sufficient to show whether or not that person is liable

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      for tax under this act.  If the taxpayer fails to file a return

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      or to maintain or preserve proper records as prescribed in this



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      section, or the department has reason to believe that any records

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      maintained or returns filed are inaccurate or incomplete and that

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      additional taxes are due, the department may assess the amount of

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      the tax due from the taxpayer based on information that is avail-

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      able or that may become available to the department.  That

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      assessment  shall be  IS considered prima facie correct for the

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      purpose of this act and the burden of proof of refuting the

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      assessment  shall be  IS upon the taxpayer.








































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