Bill Text: MI HB5459 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: Sales tax; distribution; portion of sales tax revenue; earmark distribution and limit use to transportation purposes. Amends sec. 25 of 1933 PA 167 (MCL 205.75).

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2014-05-13 - Referred To Committee On Infrastructure Modernization [HB5459 Detail]

Download: Michigan-2013-HB5459-Engrossed.html

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HB-5459, As Passed House, May 8, 2014

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5459

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 25 (MCL 205.75), as amended by 2012 PA 226.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 25. (1) All money received and collected under this act

 

shall 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 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 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 March 15, 1994 shall 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 of treasury shall be deposited each

 

year into the comprehensive transportation fund created in section

 

10b of 1951 PA 51, MCL 247.660b.

 

     (5) For the fiscal year ending September 30, 2013 only, an

 

amount equal to 18% of the collections of the tax imposed at a rate

 

of 4% under this act from the sale of motor fuel, as that term is

 

defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL

 

207.1004, shall be distributed as follows:

 

     (a) An amount sufficient to match available federal highway

 

funds shall be deposited into the state trunk line fund created in

 

section 11 of 1951 PA 51, MCL 247.661, for the purpose of matching

 

federal aid highway funds as those federal funds are made available

 

to this state, but not less than 39.1% subject to subdivision (c).

 

     (b) After the distribution under subdivision (a), any

 

remaining balance, subject to subdivision (c), shall be distributed

 

as follows:

 

     (i) 66% to the county road commissions of this state, which

 

distribution shall be administered under section 12 of 1951 PA 51,

 

MCL 247.662.

 

     (ii) 34% to the cities and villages of this state, which

 

distribution shall be administered under section 13 of 1951 PA 51,

 

MCL 247.663.

 

     (c) Funds distributed under this subsection shall not exceed

 

$100,000,000.00.

 

     (6) For the fiscal year ending September 30, 2013 only and

 

except as otherwise limited in this subsection after the

 

allocations and distributions are made pursuant to subsections (2)

 

and (3), an amount equal to the collections of the tax imposed at a

 

rate of 4% under this act from the sale at retail of aviation fuel

 

and aviation products shall be deposited in the state aeronautics

 

fund and shall 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. Not more than

 

$10,000,000.00 shall be deposited in the state aeronautics fund

 

under this subsection. As used in this subsection, "state

 

aeronautics fund" means the state aeronautics fund created in

 

section 34 of the aeronautics code of the state of Michigan, 1945

 

PA 327, MCL 259.34.

 

     (7) For the fiscal year ending September 30, 2015 and each

 

fiscal year thereafter, after the allocations and distributions are

 

made pursuant to subsections (2), (3), and (4), the balance of the

 

collections of the general sales tax imposed at a rate of 4%

 

directly or indirectly on motor fuel shall be distributed to the

 

state trunk line fund, county road commissions, and the cities and

 

villages of this state, in the same percentages described in

 

section 10(1)(j) of 1951 PA 51, MCL 247.660, and shall be used for

 

the purposes provided in 1951 PA 51, MCL 247.651 to 247.675. As

 

used in this subsection, "motor fuel" means that term as defined in

 

section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004.

 

     (8) (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 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 be

 

considered in addition to, and is not intended as a replacement for

 

any other money appropriated to the department of community health.

 

The funds deposited in the Michigan health initiative fund on an

 

annual basis shall not be less than $9,000,000.00 or more than

 

$12,000,000.00.

 

     (9) (8) The balance in the state general fund shall be

 

disbursed only on an appropriation or appropriations by the

 

legislature.