HOUSE BILL No. 5795


     March 13, 2002, Introduced by Rep. Scranton and referred to the Committee on Transportation.


        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 ALL THE TOTAL COLLECTIONS OF THE

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


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

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

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        AND USED CAR BUSINESSES, USED CAR BUSINESSES, ACCESSORY DEALER

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        BUSINESSES, AND GASOLINE STATION BUSINESSES AS CLASSIFIED BY THE

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        DEPARTMENT OF TREASURY, THE FOLLOWING AMOUNTS SHALL BE DEPOSITED

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        IN THE FOLLOWING FUNDS:

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             (A) 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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             (B) THE BALANCE TO THE STATE GENERAL FUND.






































   06995'02          Final page.                            CSC