HB-5089, As Passed House, December 17, 2009

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5089

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 25 (MCL 205.75), as amended by 2008 PA 361.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 25. (1) All money received and collected under this act

 

shall be deposited by the department in the state treasury to the

 

credit of the general fund, except as otherwise provided in this

 

section.

 

     (2) Fifteen percent of the collections of the tax imposed at a

 

rate of 4% shall be distributed to cities, villages, and townships

 

pursuant to the Glenn Steil state revenue sharing act of 1971, 1971

 

PA 140, MCL 141.901 to 141.921.

 

     (3) Sixty percent of the collections of the tax imposed at a

 


rate of 4% shall be deposited in the state school aid fund

 

established in section 11 of article IX of the state constitution

 

of 1963 and distributed as provided by law. In addition, all of the

 

collections of the tax imposed at the additional rate of 2%

 

approved by the electors March 15, 1994 shall be deposited in the

 

state school aid fund.

 

     (4) For the fiscal year ending September 30, 1988 and each

 

fiscal year ending after September 30, 1988, of the 25% of the

 

collections of the general sales tax imposed at a rate of 4%

 

directly or indirectly on fuels sold to propel motor vehicles upon

 

highways, on the sale of motor vehicles, and on the sale of the

 

parts and accessories of motor vehicles by new and used car

 

businesses, used car businesses, accessory dealer businesses, and

 

gasoline station businesses as classified by the department of

 

treasury remaining after the allocations and distributions are made

 

pursuant to subsections (2) and (3), the following amounts shall be

 

deposited each year into the respective funds:

 

     (a) For the fiscal year ending September 30, 2003 and for the

 

fiscal year ending September 30, 2006 and each fiscal year ending

 

after September 30, 2006, not less than 27.9% to the comprehensive

 

transportation fund. For the fiscal year ending September 30, 2004

 

through the fiscal year ending September 30, 2005, not less than

 

24% to the comprehensive transportation fund. For the fiscal year

 

ending September 30, 2006 only, the amount deposited to the

 

comprehensive transportation fund under this subdivision shall be

 

reduced by $11,100,000.00. For the fiscal year ending September 30,

 

2007 only, the amount deposited to the comprehensive transportation

 


fund under this subdivision shall be reduced by $10,270,000.00. For

 

the fiscal year ending September 30, 2008 only, the amount

 

deposited to the comprehensive transportation fund under this

 

subdivision shall be reduced by $5,000,000.00 and shall be

 

deposited in the state treasury to the credit of the general fund.

 

     (b) The balance to the state general fund.

 

     (5) After the allocations and distributions are made pursuant

 

to subsections (2) and (3), an amount equal to the collections of

 

the tax imposed at a rate of 4% under this act from the sale at

 

retail of computer software as defined in section 1a shall be

 

deposited in the Michigan health initiative fund created in section

 

5911 of the public health code, 1978 PA 368, MCL 333.5911, and

 

shall be considered in addition to, and is not intended as a

 

replacement for any other money appropriated to the department of

 

community health. The funds deposited in the Michigan health

 

initiative fund on an annual basis shall not be less than

 

$9,000,000.00 or more than $12,000,000.00.

 

     (6) Except as otherwise provided in subsection (8), after the

 

allocations and distributions are made pursuant to subsections (2)

 

through (5), 100% of the tourism-generated increase in the

 

collections of the tax imposed at a rate of 4% under this act

 

directly or indirectly from the sale of tourist-oriented goods and

 

services shall be deposited into the Michigan promotion fund.

 

Notwithstanding any other provision of law to the contrary, a

 

portion of the Michigan promotion fund shall be used for the

 

promotion of annual motor sports events at a motor sports facility

 

that has over 70,000 fixed seats for race patrons and that

 


participates in tourism promotion. As used in this subsection:

 

     (a) "Michigan promotion fund" means the fund created in

 

section 39 of the Michigan strategic fund act, 1984 PA 270, MCL

 

125.2039.

 

     (b) "Sale of tourist-oriented goods and services" means sales

 

by tourism businesses.

 

     (c) "Tourism businesses" means those businesses registered

 

with the department of treasury under the following major industry

 

groups under the standard industrial classification code as

 

compiled by the United States department of labor:

 

     (i) 581.

 

     (ii) 582.

 

     (iii) 583.

 

     (iv) 584.

 

     (v) 585.

 

     (vi) 586.

 

     (vii) 587.

 

     (viii) 701.

 

     (ix) 702.

 

     (x) 703.

 

     (xi) 751.

 

     (xii) 792.

 

     (xiii) 794.

 

     (xiv) 842.

 

     (d) "Tourism-generated increase" means an amount equal to the

 

increase in the collections of the tax imposed at a rate of 4%

 

under this act from the sale of tourism-oriented goods and services

 


by tourism businesses, calculated individually for each major

 

industry group identified under subdivision (c), in the current

 

fiscal year over the collections of the tax imposed at a rate of 4%

 

under this act from the sale of tourism-oriented goods and services

 

by tourism businesses, calculated individually for each major

 

industry group identified under subdivision (c), in the 2009 fiscal

 

year.

 

     (7) (6) The balance in the state general fund shall be

 

disbursed only on an appropriation or appropriations by the

 

legislature.

 

     (8) Beginning January 1, 2013 and every 3 years thereafter,

 

the Michigan economic development corporation shall commission a

 

return on investment study with an independent private entity for

 

the 3 immediately preceding calendar years. The return on

 

investment study shall be reported to each house of the legislature

 

and to the governor not later than July 1 of that year. If the

 

return on investment study is not reported to each house of the

 

legislature and to the governor on or before July 1 or the return

 

on investment study shows that the funds disbursed under the

 

Michigan promotion fund in those 3 years have a ratio of return on

 

investment of less than 1 for 1, then the distribution under

 

subsection (6) shall cease on January 1 of the immediately

 

succeeding year.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) House Bill No. 5018.

 


     (b) House Bill No. 5088.