HOUSE BILL No. 5017

 

May 28, 2009, Introduced by Reps. Stanley, Hammel, Bennett, Gregory, Gonzales, Spade, McDowell, Terry Brown, Haveman, Sheltrown, Liss, Espinoza, Lahti, Slezak and Robert Jones and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.

 

     A bill to impose a state assessment on persons engaged in the

 

business of leasing or renting a motor vehicle; to provide for the

 

levy, collection, and administration of the state assessment; to

 

provide for the disposition of the proceeds of the state

 

assessment; to prescribe the powers and duties of certain state

 

departments and certain public entities; and to provide for certain

 

exemptions.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"Michigan promotion assessment act".

 

     Sec. 2. As used in this act:

 

     (a) "Assessable transaction" means the lease or rental of a

 

motor vehicle designed for 8 or fewer passengers, regardless of

 


whether the vehicle is licensed in this state, for a period of less

 

than 31 days that commences at 1 of the following:

 

     (i) A hotel, motel, or inn.

 

     (ii) A commercial airport or at a location within 5.0 miles of

 

a commercial airport.

 

     (iii) An other transportation facility.

 

     (iv) A convention facility.

 

     (b) "Commercial airport" means an airport within this state

 

that has regularly scheduled commercial flights.

 

     (c) "Convention facility" means a facility designed for

 

holding conventions, meetings, exhibits, trade shows, and similar

 

events.

 

     (d) "Michigan promotion fund" means the Michigan promotion

 

fund described in section 39 of the Michigan strategic fund act,

 

1984 PA 270, MCL 125.2039.

 

     (e) "Motor vehicle" means a motor vehicle that is or would be

 

subject to registration and certificate of title under section 216

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.216, that is

 

designed and intended to be used primarily in the transportation of

 

passengers. Motor vehicle does not include a road tractor, school

 

bus, special mobile equipment, tank vehicle, truck tractor,

 

implement of husbandry, or farm tractor as those terms are defined

 

by the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.

 

     (f) "Other transportation facility" means a passenger train

 

station, motor bus terminal, or harbor.

 

     (g) "Person" means an individual, partnership, corporation,

 

association, limited liability company, or other legal entity.

 


     Sec. 3. Except as otherwise provided in this section or in

 

section 7 or 8, beginning with assessable transactions that begin

 

after September 30, 2009 and through September 30, 2014, there is

 

imposed on persons engaged in the rental or lease of motor vehicles

 

an assessment of $2.50 for each day or portion of a day of each

 

assessable transaction.

 

     Sec. 4. (1) An assessment under this act shall be collected at

 

the same time and in the same manner as the tax imposed under the

 

use tax act, 1937 PA 94, MCL 205.91 to 205.111, and the general

 

sales tax act, 1933 PA 167, MCL 205.51 to 205.78.

 

     (2) The assessment imposed by this act shall be administered

 

by the department of treasury under 1941 PA 122, MCL 205.1 to

 

205.31.

 

     Sec. 5. (1) The assessment provided for under this act is a

 

tax that is levied on a person engaged in the business of rental or

 

lease of motor vehicles.

 

     (2) A taxpayer may reimburse himself or herself by adding the

 

amount of the assessment to the rental transaction.

 

     Sec. 6. The proceeds from the collection of the assessment

 

imposed under this act shall be deposited with the state treasurer

 

and credited to the Michigan promotion fund. However, if the

 

balance in the Michigan promotion fund at the end of any fiscal

 

year exceeds $40,000,000.00, adjusted annually for the rate of

 

inflation, beginning with the first fiscal year after that balance

 

reaches $40,000,000.00, additional collections from the assessment

 

under this act for the succeeding fiscal year shall be deposited in

 

the general fund.

 


     Sec. 7. Beginning in the fiscal year immediately succeeding a

 

fiscal year in which the Michigan promotion fund has a year-end

 

balance that exceeds $40,000,000.00, adjusted annually for

 

inflation, the assessment imposed under section 3 shall be reduced

 

by 50 cents each fiscal year. Beginning in the fiscal year

 

immediately succeeding 2 consecutive fiscal years in which the

 

Michigan promotion fund has a year-end balance that exceeds

 

$40,000,000.00, adjusted annually for inflation, the department of

 

treasury shall cease imposing and collecting the assessment

 

described in section 3.

 

     Sec. 8. This act does not apply to a motor vehicle provided at

 

no charge to a person whose motor vehicle is being repaired,

 

adjusted, or serviced by the entity providing the replacement motor

 

vehicle.

 

     Sec. 9. This act does not apply to a motor vehicle provided to

 

a person whose motor vehicle is being repaired, adjusted, replaced,

 

or serviced, and who submits an insurance claim, accident report,

 

or written estimate from a motor vehicle repair facility dated

 

within 7 days of the lease or rental of a motor vehicle.

 

     Enacting section 1. This act does not take effect unless all

 

of the following bills of the 95th Legislature are enacted into

 

law:

 

     (a) Senate Bill No.____ or House Bill No.____ (request no.

 

03089'09).

 

     (b) Senate Bill No.____ or House Bill No. 5018(request no.

 

03155'09 *).

 

     (c) Senate Bill No.____ or House Bill No.____ (request no.

 


03196'09).