Bill Text: MI SB0614 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Use tax; other; reporting requirement on aviation fuel and earmark of percentage of tax collected on aviation fuel; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 6c. TIE BAR WITH: SB 0418'15, SB 0425'15, SB 0426'15, SB 0612'15, SB 0613'15
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-12-31 - Assigned Pa 0263'15 With Immediate Effect [SB0614 Detail]
Download: Michigan-2015-SB0614-Engrossed.html
SB-0614, As Passed Senate, December 3, 2015
SUBSTITUTE FOR
SENATE BILL NO. 614
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 21 (MCL 205.111), as amended by 2014 PA 80, and
by adding section 6c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6c. (1) Beginning April 1, 2016 and each calendar quarter
thereafter, every person storing, using, or consuming aviation
fuel, the storage, use, or consumption of which is subject to the
tax imposed by this act when the tax was not paid to a seller, and
every seller collecting the tax from the purchaser from sales of
aviation fuel shall, on or before the last day of the month in the
month that immediately follows the end of a calendar quarter, file
an informational report with the department on a form prescribed by
the department showing all of the following for the immediately
preceding calendar quarter:
(a) The entire amount of taxable aviation fuel sold or
purchased by the person, as applicable.
(b) The amount of tax for which the person is liable from the
purchase or sale of aviation fuel.
(c) The number of taxable gallons of aviation fuel sold or
purchased by the person, as applicable, at each airport and the
gross proceeds from the sales or purchase of those gallons of
aviation fuel, as applicable.
(d) Any other information the department considers necessary
for the proper administration of this act.
(2) The report required under this section shall not include
any remittance for tax and does not constitute a return or
otherwise alleviate the person's obligations under section 6.
(3) A person required to file the informational report under
this section that fails or refuses to file the informational report
within the time and in the manner specified in this section shall
be liable for a penalty of $10.00 per day for each day for each
separate failure or refusal up to, but not exceeding, a maximum
penalty of $500.00 for each separate violation. The department may
waive the penalty if the taxpayer demonstrates to the satisfaction
of the department that the failure to file was due to reasonable
cause.
(4) As used in this section, "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.
Sec.
21. (1) Except as provided in subsections (2), (3), and
(4), and (5), all money received and collected under 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) From the money received and collected under this act for
the state share, an amount equal to all revenue lost under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and
all revenue lost from basic school operating mills as a result of
the exemption of personal property under sections 9m, 9n, and 9o of
the general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and
211.9o, as determined by the department, shall be deposited into
the state school aid fund established by section 11 of article IX
of the state constitution of 1963. Funds deposited into the state
school aid fund under this subsection shall not include the portion
of the state share of the use tax imposed at the additional rate of
2% approved by the electors of this state on March 15, 1994 and
dedicated for aid to schools under subsection (2).
(4) Money received and collected under this act for the local
community stabilization share is not state funds, shall not be
credited to the state treasury, and shall be transmitted to the
authority for deposit in the treasury of the authority, to be
disbursed by the authority only as authorized under the local
community stabilization authority act. The local community
stabilization share is a local tax, not a state tax, and money
received and collected for the local community stabilization share
is money of the authority and not money of this state.
(5) Beginning October 1, 2016 and the first day of each
calendar quarter thereafter, from the money received and collected
under this act for the state share, 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 use, storage, or consumption 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 use, storage, or consumption of
aviation fuel 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.
(b) An amount equal to 65% of the collections of the tax
imposed at a rate of 2% on the use, storage, or consumption of
aviation fuel shall be deposited in the qualified airport fund and
shall be expended, on appropriation, only for those purposes
authorized under section 35(2) of the aeronautics code of the state
of Michigan, 1945 PA 327, MCL 259.35.
(6) The department shall, on an annual basis, reconcile the
amounts distributed under subsection (5) 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.
(7) 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 takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 418.
(b) Senate Bill No. 425.
(c) Senate Bill No. 426.
(d) Senate Bill No. 612.
(e) Senate Bill No. 613.
