July 28, 2020

Also Sent Via Email

Joint Committee on Administrative Rules

Boji Tower, 3^rd Floor

124 West Allegan Street

P.O. Box 30036

Lansing, MI 48909-7536

Subject: Waiver Request

Dear Chairperson Lucido, Alternate Chairperson Maddock, and Committee Members:

As the Regulatory Affairs Officer for the Department of Treasury, I respectfully request that the Joint Committee on Administrative Rules (JCAR) waive the remaining session days under the authority provided in the Administrative Procedures Act of 1969, MCL 24.245a(1)(d), for the review of the following amended rule:

Specific Sales and Use Tax Rule R 205.127 (MOAHR #2020-019 TY)

R 205.127 is being amended to define the phrase “bottled water” by adopting the Streamlined Sales and Use Tax Act’s definition. The amendment to the rule will provide clarity to businesses and persons regarding what constitutes non-taxable bottled water.

Michigan is a member of the Streamlined Sales and Use Tax Agreement (SSUTA). Under the terms of the SSUTA, if a member state’s sales/use tax rules use a word or phrase that is defined in the SSUTA’s Library of Definitions, that state must define that word or phrase using the SSUTA’s definition in its rules. Michigan uses the phrase “bottled water” in R 205.127 without providing a definition of the phrase. Michigan can correct this possible noncompliance with SSUTA by adding the SSUTA’s definition of “bottled water” to R 205.127.

Prior to initiating the rulemaking process, the Department shared the proposed draft with the interested parties and potential stakeholders to solicit any comments or issues of concern. None were received. During the subsequent rulemaking process, no persons participated in the public hearing, which was held virtually via Microsoft Teams after due Notice of Public Hearing published in 3 newspapers of general circulation. Furthermore, no persons submitted written comments during the period for receiving public comment by
mail, facsimile, or electronically.

The promulgation of the amendment to R 205.127 adding the definition of “bottled water” would remove any possible noncompliance with SSUTA. Thus, this request is respectfully made to the JCAR for waiver of the balance of the session days review period.

Sincerely,

/s/ Margaret Patterson

Margaret Patterson

Regulatory Affairs Officer

(517) 241-3196

cc: Timothy Reeves and Elizabeth Edberg, Legislative Services Bureau

Katie Wienczewski, Michigan Office of Administrative Hearings and Rules

Deidre O’Berry, Michigan Office of Administrative Hearings and Rules

Rachael Eubanks, State Treasurer

Lance Wilkinson, Bureau of Tax Policy

Stewart Binke, Bureau of Tax Policy