November 30, 2017, Introduced by Reps. Hauck, VerHeulen, Lower, Albert, Howell, Frederick, Inman and Leutheuser and referred to the Committee on Michigan Competitiveness.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 25 (MCL 205.75), as amended by 2015 PA 262.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 25. (1) All money received and collected under this act
shall
must 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 must 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 must 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 on March 15, 1994 shall must be
deposited
in the state school aid fund.
(4) Not less than 27.9% of 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 shall must
be deposited each year into
the comprehensive transportation fund created in section 10b of
1951 PA 51, MCL 247.660b.
(5) Beginning with fiscal year 2019 and each fiscal year
thereafter, from the money received and collected from the tax
imposed at a rate of 4% under this act, $10,000,000.00 shall be
deposited into the fire protection fund created in section 732a(8)
of the Michigan vehicle code, 1949 PA 300, MCL 257.732a.
(6) Beginning October 15, 2018 and on the fifteenth day of
every other month thereafter, the department shall deposit
$79,187,866.00 of the money received and collected from the tax
imposed at a rate of 4% under this act into the revenue sharing
trust fund created under section 14 of the Michigan trust fund act,
2000 PA 489, MCL 12.264.
(7) For the 2019 fiscal year, in addition to the amount
deposited under subsection (6), the department shall deposit an
additional $5,000,000.00 of the money received and collected from
the tax imposed at a rate of 4% under this act into the revenue
sharing trust fund created under section 14 of the Michigan trust
fund act, 2000 PA 489, MCL 12.264. Subject to the limitation under
this subsection, for the 2020 fiscal year and each fiscal year
after 2020, an amount equal to the sum of the amount distributed
under this subsection in the immediately preceding fiscal year plus
$5,000,000.00 shall be deposited into the revenue sharing trust
fund created under section 14 of the Michigan trust fund act, 2000
PA 489, MCL 12.264. The amount deposited under this subsection
shall not exceed $100,000,000.00 in any fiscal year.
(8) (5)
Beginning October 1, 2016 and the
first day of each
calendar quarter thereafter, an amount equal to the collections for
the calendar quarter that is 2 calendar quarters immediately
preceding the current calendar quarter of the tax imposed under
this act at the additional rate of 2% approved by the electors on
March 15, 1994 from the sale at retail of aviation fuel shall be
distributed as follows:
(a) An amount equal to 35% of the collections of the tax
imposed at a rate of 2% on the sale at retail of aviation fuel
shall
be deposited in the state aeronautics fund and shall must be
expended, on appropriation, only for those purposes authorized in
the aeronautics code of the state of Michigan, 1945 PA 327, MCL
259.1 to 259.208.
(b) An amount equal to 65% of the collections of the tax
imposed at a rate of 2% on the sale at retail of aviation fuel
shall
must be deposited in the qualified airport fund and shall
must be expended, on appropriation, only for those purposes
authorized under section 35 of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.35.
(9) (6)
The department shall, on an annual
basis, reconcile
the
amounts distributed under subsection (5) (8) during each fiscal
year with the amounts actually collected for a particular fiscal
year and shall make any necessary adjustments, positive or
negative, to the amounts to be distributed for the next successive
calendar quarter that begins January 1. The state treasurer or his
or her designee shall annually provide to the operator of each
qualified airport a report of the reconciliation performed under
this subsection. The reconciliation report is subject to the
confidentiality restrictions and penalties provided in section
28(1)(f) of 1941 PA 122, MCL 205.28.
(10) (7)
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 must
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 must be
considered in addition to, and is not intended as a replacement for
any
other money appropriated to the department of community health
and human services or its successor. The funds deposited in the
Michigan
health initiative fund on an annual basis shall must not
be less than $9,000,000.00 or more than $12,000,000.00.
(11) (8)
The balance in the state general
fund shall be
disbursed only on an appropriation or appropriations by the
legislature.
(12) (9)
As used in this section:
(a) "Aviation fuel" means fuel as that term is defined in
section 4 of the aeronautics code of the state of Michigan, 1945 PA
327, MCL 259.4.
(b) "Qualified airport" means that term as defined in section
109 of the aeronautics code of the state of Michigan, 1945 PA 327,
MCL 259.109.
(c) "Qualified airport fund" means the qualified airport fund
created in section 34(2) of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.34.
(d) "State aeronautics fund" means the state aeronautics fund
created in section 34(1) of the aeronautics code of the state of
Michigan, 1945 PA 327, MCL 259.34.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5314 (request no.
04303'17 *) of the 99th Legislature is enacted into law.