SENATE BILL No. 1080

 

 

September 5, 2018, Introduced by Senators WARREN, YOUNG, GREGORY and HOOD and referred to the Committee on Finance.

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 4g (MCL 205.54g), as amended by 2015 PA 171.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4g. (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, over-the-counter drugs for human use

 

that are legally dispensed by prescription, or food or food

 

ingredients, except prepared food intended for immediate human

 

consumption. As used in this subdivision, "over-the-counter drug"

 

means a drug that is labeled in accordance with the format and

 

content requirements required for labeling over-the-counter drugs

 

under 21 CFR 201.66.

 

     (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 that are 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.

 

     (f) Sales of marihuana or marihuana-derived products that bear

 

the universal symbol and label required under the medical marihuana

 

facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801,

 

and the marihuana tracking act, 2016 PA 282, MCL 333.27901 to

 

333.27904.

 

     (2) 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 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 consumption" means

 

prepared food.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.