MOBILE HOME SALES TAX S.B. 707: COMMITTEE SUMMARY
Senate Bill 707 (as introduced 9-18-03)
Sponsor: Senator Valde Garcia
Committee: Finance
Date Completed: 6-1-04
CONTENT
The bill would amend the General Sales Tax Act to provide that, beginning January 1, 2002, the tax would not apply to the sale of a mobile home.
Under the bill, "mobile home" would be defined as it is in the Mobile Home Commission Act, i.e., a structure, transportable in one or more sections, that is built on a chassis and designed to be used as a dwelling with or without permanent foundation, when connected to the required utilities, included the plumbing, heating, air-conditioning, and electrical systems contained in the structure.
Proposed MCL 205.54bb Legislative Analyst: J.P. Finet
FISCAL IMPACT
This bill would reduce sales tax collections an estimated $22.7 million in FY 2004-05 (assuming an effective date of October 1, 2004) and $23.2 million in FY 2005-06. This loss in revenue would primarily affect the School Aid Fund and local revenue sharing. In FY 2004-05, School Aid Fund revenue would decline $16.6 million and revenue sharing would decline $5.5 million.
Fiscal Analyst: Jay Wortley
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb707/0304