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.