Bill Text: MI SB1020 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Sales tax; distribution; distribution of sales tax revenue for the revenue sharing trust fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 1019'18

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-05-17 - Referred To Committee On Appropriations [SB1020 Detail]

Download: Michigan-2017-SB1020-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1020

 

 

May 17, 2018, Introduced by Senator YOUNG and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 25 (MCL 205.75), as amended by 2015 PA 262.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

shall must 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 must 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 must 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 on March 15, 1994 shall must 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 shall must be deposited each year into

 

the comprehensive transportation fund created in section 10b of

 

1951 PA 51, MCL 247.660b.

 

     (5) Beginning October 15, 2018 and on the fifteenth day of

 

every other month thereafter, the department shall deposit

 

$79,187,866.00 of the money received and collected from the tax

 

imposed at a rate of 4% under this act into the revenue sharing

 

trust fund created under section 11 of the Michigan trust fund act,

 

2000 PA 489, MCL 12.261.

 

     (6) For the 2021 fiscal year, in addition to the amount

 

deposited under subsection (5), the department shall deposit an

 

additional $15,000,000.00 of the money received and collected from

 

the tax imposed at a rate of 4% under this act into the revenue

 

sharing trust fund created under section 11 of the Michigan trust

 

fund act, 2000 PA 489, MCL 12.261. Subject to the limitation under


this subsection, for the 2021 fiscal year and each fiscal year

 

after 2021, an amount equal to the sum of the amount distributed

 

under this subsection in the immediately preceding fiscal year plus

 

$15,000,000.00 shall be deposited into the revenue sharing trust

 

fund created under section 11 of the Michigan trust fund act, 2000

 

PA 489, MCL 12.261. The amount deposited under this subsection

 

shall not exceed $300,000,000.00 in any fiscal year.

 

     (7) (5) Beginning October 1, 2016 and the first day of each

 

calendar quarter thereafter, 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 sale at retail 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 sale at retail of aviation fuel

 

shall be deposited in the state aeronautics fund and shall must 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 sale at retail of aviation fuel

 

shall must be deposited in the qualified airport fund and shall

 

must be expended, on appropriation, only for those purposes

 

authorized under section 35 of the aeronautics code of the state of

 

Michigan, 1945 PA 327, MCL 259.35.

 

     (8) (6) The department shall, on an annual basis, reconcile


the amounts distributed under subsection (5) (7) 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.

 

     (9) (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 must 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 must be

 

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

 

any other money appropriated to the department of community health

 

and human services or its successor. The funds deposited in the

 

Michigan health initiative fund on an annual basis shall must not

 

be less than $9,000,000.00 or more than $12,000,000.00.

 

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

 

disbursed only on an appropriation or appropriations by the

 

legislature.

 

     (11) (9) 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 does not take effect

 

unless Senate Bill No.____ or House Bill No.____ (request no.

 

06358'18 *) of the 99th Legislature is enacted into law.

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