Bill Text: MI SB0572 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Use tax; exemptions; sale of food from vending machine; eliminate exemption. Amends sec. 4d of 1937 PA 94 (MCL 205.94d).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-05-13 - Referred To Committee On Finance [SB0572 Detail]

Download: Michigan-2009-SB0572-Introduced.html

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SENATE BILL No. 572

 

 

May 13, 2009, Introduced by Senator SWITALSKI and referred to the Committee on Finance.

 

 

 

     A bill to amend 1937 PA 94, entitled

 

"Use tax act,"

 

by amending section 4d (MCL 205.94d), as amended by 2008 PA 439.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4d. (1) The following are exempt from the tax under this

 

act:

 

     (a) Sales of drugs for human use that can only be legally

 

dispensed by prescription or food or food ingredients, except

 

prepared food intended for immediate human consumption and, after

 

June 1, 2009, food and food ingredients sold from a vending

 

machine.

 

     (b) The deposit on a returnable container for a beverage or

 

the deposit on a carton or case that is used for returnable

 

containers.

 

     (c) Food or tangible personal property purchased under the

 

federal food stamp program or meals sold by a person exempt from

 

the tax under this act eligible to be purchased under the federal

 

food stamp program.

 

     (d) Fruit or vegetable seeds and fruit or vegetable plants if

 

purchased at a place of business authorized to accept food stamps

 

by the food and nutrition service of the United States department

 

of agriculture or a place of business that has made a complete and

 

proper application for authorization to accept food stamps but has

 

been denied authorization and provides proof of denial to the

 

department of treasury.

 

     (e) Live animals purchased with the intent to be slaughtered

 

for human consumption.

 

     (2) Food Before June 1, 2009, food or drink heated or cooled

 

mechanically, electrically, or by other artificial means to an

 

average temperature above 75 degrees Fahrenheit or below 65 degrees

 

Fahrenheit before sale and sold from a vending machine, except

 

milk, nonalcoholic beverages in a sealed container, and fresh

 

fruit, is subject to the tax under this act. The tax due under this

 

act on the sale of food or drink from a vending machine selling

 

both taxable items and items exempt under this subsection shall be

 

calculated under this act after December 31, 1994 based on 1 of the

 

following as determined by the taxpayer:

 

     (a) Actual gross proceeds from sales at retail.

 

     (b) Forty-five percent of proceeds from the sale of items

 

subject to tax under this act or exempt from the tax levied under

 

this act, other than from the sale of carbonated beverages.

 

     (3) "Food and food ingredients" means substances, whether in

 

liquid, concentrated, solid, frozen, dried, or dehydrated form,

 

that are sold for ingestion or chewing by humans and are consumed

 

for their taste or nutritional value. Food and food ingredients do

 

not include alcoholic beverages and tobacco.

 

     (4) "Prepared food" means the following:

 

     (a) Food sold in a heated state or that is heated by the

 

seller.

 

     (b) Two or more food ingredients mixed or combined by the

 

seller for sale as a single item.

 

     (c) Food sold with eating utensils provided by the seller,

 

including knives, forks, spoons, glasses, cups, napkins, straws, or

 

plates, but not including a container or packaging used to

 

transport the food.

 

     (5) Prepared food does not include the following:

 

     (a) Food that is only cut, repackaged, or pasteurized by the

 

seller.

 

     (b) Raw eggs, fish, meat, poultry, and foods containing those

 

raw items requiring cooking by the consumer in recommendations

 

contained in section 3-401.11 of part 3-4 of chapter 3 of the 2001

 

food code published by the food and drug administration of the

 

public health service of the department of health and human

 

services, to prevent foodborne illness.

 

     (c) Food sold in an unheated state by weight or volume as a

 

single item, without eating utensils.

 

     (d) Bakery items, including bread, rolls, buns, biscuits,

 

bagels, croissants, pastries, doughnuts, danish, cakes, tortes,

 

pies, tarts, muffins, bars, cookies, and tortillas, sold without

 

eating utensils.

 

     (6) "Prepared food intended for immediate human consumption"

 

means prepared food and, after June 1, 2009, food and food

 

ingredients sold from a vending machine.