HOUSE BILL No. 4002


     January 10, 2001, Introduced by Rep. Scranton and referred to the Committee on Tax Policy.


        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:

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           Sec. 21.  (1) Except as provided in  subsection (2)  THIS

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      SECTION, all money received and collected under  the provisions

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      of  this act shall be deposited by the department of treasury, in

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      the state treasury to the credit of the general fund, to be dis-

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      bursed only by appropriations by the legislature.

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           (2) The collections from the use tax imposed at the addi-

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      tional rate of 2% approved by the electors March 15, 1994 shall

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      be deposited in the state school aid fund established in

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      section 11 of article IX of the state constitution of 1963.

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           (3) IN EACH FISCAL YEAR, OF THE TOTAL COLLECTIONS OF THE USE

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      TAX IMPOSED AT A RATE OF 4% DIRECTLY OR INDIRECTLY ON THE SALE OF


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      MOTOR VEHICLES, ON THE LEASE OF MOTOR VEHICLES, AND ON THE SALE

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      OF THE PARTS AND ACCESSORIES OF MOTOR VEHICLES BY NEW AND USED

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      CAR BUSINESSES, USED CAR BUSINESSES, ACCESSORY DEALER BUSINESSES,

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      AND GASOLINE STATION BUSINESSES AS CLASSIFIED BY THE DEPARTMENT

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      OF TREASURY, THE FOLLOWING AMOUNTS SHALL BE DEPOSITED IN THE FOL-

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      LOWING FUNDS:

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           (A) SIXTY PERCENT OF THE TOTAL COLLECTIONS SHALL BE DEPOS-

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      ITED IN THE STATE SCHOOL AID FUND ESTABLISHED IN SECTION 11 OF

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      ARTICLE IX OF THE STATE CONSTITUTION OF 1963.

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           (B) NOT LESS THAN 27.9% OF 25% OF THE TOTAL COLLECTIONS

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      SHALL BE DEPOSITED IN THE COMPREHENSIVE TRANSPORTATION FUND.

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           (C) THE BALANCE TO THE STATE GENERAL FUND.
































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