Bill Text: MI HB4031 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Taxation; excise taxes; levy of a car rental assessment; establish, and earmark for construction and maintenance of certain roads. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-23 - Printed Bill Filed 01/23/2013 [HB4031 Detail]
Download: Michigan-2013-HB4031-Introduced.html
HOUSE BILL No. 4031
January 22, 2013, Introduced by Rep. Geiss and referred to the Committee on Transportation and Infrastructure.
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 car rental 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 a commercial airport or at a
location within 1.1 miles of a commercial airport.
(b) "Commercial airport" means an airport within this state
that has regularly scheduled commercial flights.
(c) "Michigan car rental assessment fund" means the Michigan
car rental assessment fund created in section 7.
(d) "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.
(e) "Next Michigan development district" means that term as
defined in section 3 of the next Michigan development act, 2010 PA
275, MCL 125.2953.
(f) "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, 2013 there is imposed on persons engaged in the
rental or lease of motor vehicles an assessment of $1.00 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 car rental assessment fund.
Sec. 7. (1) The Michigan car rental assessment fund is created
within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department of treasury shall be the administrator of
the fund for auditing purposes.
(5) The department of treasury shall expend money from the
fund, upon appropriation, only for 1 or more of the following
purposes:
(a) If the commercial airport from which the assessment was
collected is located within or connected to a next Michigan
development district, only for road construction and maintenance
within that next Michigan development district that are located
within 1.1 miles of the commercial airport.
(b) If the commercial airport from which the assessment was
collected is not located within or connected to a next Michigan
development district, only for road construction and maintenance
within 1.1 miles of the commercial airport.
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.
