Bill Text: MI HB5088 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Use tax; collections; capture of unallocated use tax revenue for distribution of tourism-related goods and services; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-12-19 - Referred To Committee On Finance [HB5088 Detail]
Download: Michigan-2009-HB5088-Engrossed.html
HB-5088, As Passed House, December 17, 2009
SUBSTITUTE FOR
HOUSE BILL NO. 5088
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 21 (MCL 205.111), as amended by 1994 PA 34.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
21. (1) Except as provided in subsection (2) subsections
(2)
and (3), all money received and
collected under the provisions
of
this act shall be deposited by the
department of treasury , in
the state treasury to the credit of the general fund, to be
disbursed only by appropriations by the legislature.
(2) The collections from the use tax imposed at the additional
rate of 2% approved by the electors March 15, 1994 shall be
deposited in the state school aid fund established in section 11 of
article IX of the state constitution of 1963.
(3) Except as otherwise provided in subsection (4), all 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 by the
department of treasury 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.
(4) 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 (3) 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. 5089.
