HOUSE BILL No. 5745

 

April 1, 2004, Introduced by Reps. Caswell, Acciavatti, Taub, Casperson, Amos, Pastor, Moolenaar, Nitz, Brandenburg, Milosch and Emmons and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1985 PA 106, entitled                                             

                                                                                

    "State convention facility development act,"                                

                                                                                

    by amending section 10 (MCL 207.630).                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 10.  (1) Any money remaining in the convention facility                

                                                                                

2   development fund at the end of the state fiscal year shall be               

                                                                                

3   transferred to the general fund of the state treasury to be                 

                                                                                

4   distributed in the next state fiscal year pursuant to subsection            

                                                                                

5   (2).                                                                        

                                                                                

6       (2) Money transferred from the convention facility                          

                                                                                

7   development fund to the general fund pursuant to subsection (1)             

                                                                                

8   shall be distributed in the following order of priority in the              

                                                                                

9   following amounts:                                                          

                                                                                

10      (a) An amount equal to the difference, if any, between the                  

                                                                                

11  tax imposed  pursuant to  under this act in the preceding state             

                                                                                


                                                                                

1   fiscal year that is designated  pursuant to  under section 9 to a           

                                                                                

2   qualified local governmental unit and the tax imposed  pursuant             

                                                                                

3   to  under this act that is designated  pursuant to  under section           

                                                                                

4   9 in the state fiscal year  prior to  immediately preceding the             

                                                                                

5   preceding state fiscal year for the same local governmental unit            

                                                                                

6   shall be distributed to that local governmental unit.  This                 

                                                                                

7   subdivision  shall  does not apply unless a tax has been imposed            

                                                                                

8   under this act in the entire 2 state fiscal years immediately               

                                                                                

9   preceding the state fiscal year in which a distribution under               

                                                                                

10  this subdivision is made.  Any amount distributed  pursuant to              

                                                                                

11  under this subdivision shall be used by the local governmental              

                                                                                

12  unit only for the retirement of outstanding bonds, obligations,             

                                                                                

13  or other evidences of indebtedness incurred for which                       

                                                                                

14  distributions  pursuant to  under section 9 are pledged.  A                 

                                                                                

15  distribution under this subdivision shall not be made to the                

                                                                                

16  extent that the obligations, bonds, or other evidences of                   

                                                                                

17  indebtedness cannot be retired or are not outstanding.                      

                                                                                

18      (b) Of the money transferred  pursuant to  under                            

                                                                                

19  subsection (1) and remaining after distributions under                      

                                                                                

20  subdivision (a), an amount equal to that portion of the liquor              

                                                                                

21  tax collected  pursuant to the convention facility promotion tax            

                                                                                

22  act  under section 1207 of the Michigan liquor control code of              

                                                                                

23  1998, 1998 PA 58, MCL 436.2207, from licensees in counties in               

                                                                                

24  which convention hotels are not located shall be distributed to             

                                                                                

25  those counties in which convention hotels are not located in the            

                                                                                

26  same proportion that the amount of tax collected  pursuant to the           

                                                                                

27  convention facility promotion tax act  under section 1207 of the            


                                                                                

1   Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,             

                                                                                

2   in the preceding state fiscal year from the licensees in a county           

                                                                                

3   bears to the total tax collections  pursuant to the convention              

                                                                                

4   facility promotion tax act  under section 1207 of the Michigan              

                                                                                

5   liquor control code of 1998, 1998 PA 58, MCL 436.2207, in the               

                                                                                

6   preceding state fiscal year from all counties in which convention           

                                                                                

7   hotels are not located.                                                     

                                                                                

8       (c) The remaining money transferred  pursuant to  under                     

                                                                                

9   subsection (1) after distributions under subdivisions (a) and (b)           

                                                                                

10  shall be distributed to each county in the following amounts:               

                                                                                

11                                                                               (i) The amount of money available to be distributed under                           

                                                                                

12  this subdivision multiplied by the percentage of collections in             

                                                                                

13  the preceding state fiscal year under  the convention facility              

                                                                                

14  promotion tax act  section 1207 of the Michigan liquor control              

                                                                                

15  code of 1998, 1998 PA 58, MCL 436.2207, from licensees in                   

                                                                                

16  counties in which convention hotels are not located shall be                

                                                                                

17  distributed to each county in which convention hotels are not               

                                                                                

18  located in the same proportion that the amount of tax collected             

                                                                                

19  pursuant to  the convention facility promotion tax act  section             

                                                                                

20  1207 of the Michigan liquor control code of 1998, 1998 PA 58, MCL           

                                                                                

21  436.2207, in the preceding state fiscal year from licensees in              

                                                                                

22  that county bears to the total tax collections from  the                    

                                                                                

23  convention facility promotion tax act  section 1207 of the                  

                                                                                

24  Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,             

                                                                                

25  in the preceding state fiscal year from all counties in which               

                                                                                

26  convention hotels are not located.                                          

                                                                                

27      (ii) The amount of money available to be distributed under                   


                                                                                

1   this subdivision multiplied by the percentage of collections in             

                                                                                

2   the preceding state fiscal year under  the convention facility              

                                                                                

3   promotion tax act  section 1207 of the Michigan liquor control              

                                                                                

4   code of 1998, 1998 PA 58, MCL 436.2207, from licensees in                   

                                                                                

5   counties in which convention hotels are located shall be                    

                                                                                

6   distributed to each county in which convention hotels are located           

                                                                                

7   in the same proportion that the amount of tax collected pursuant            

                                                                                

8   to  the convention facility promotion tax act  section 1207 of              

                                                                                

9   the Michigan liquor control code of 1998, 1998 PA 58, MCL                   

                                                                                

10  436.2207, in the preceding state fiscal year from licensees in              

                                                                                

11  that county bears to the total tax collections from  the                    

                                                                                

12  convention facility promotion tax act  section 1207 of the                  

                                                                                

13  Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,             

                                                                                

14  in the preceding state fiscal year from all counties in which               

                                                                                

15  convention hotels are located.  However, in the calculation of              

                                                                                

16  the proportion represented by a county's share of distributions             

                                                                                

17  under this subparagraph, the amount of the tax collected from               

                                                                                

18  licensees in the qualified local governmental unit that received            

                                                                                

19  distributions under section 9 in the last state fiscal year shall           

                                                                                

20  not be included.                                                            

                                                                                

21      (3) A distribution to a county pursuant to this section                     

                                                                                

22  shall be included for purposes of the calculations required to be           

                                                                                

23  made by section 24e of the general property tax act,  Act No. 206           

                                                                                

24  of the Public Acts of 1893, being section 211.24e of the Michigan           

                                                                                

25  Compiled Laws  1893 PA 206, MCL 211.24e.  If the governing body             

                                                                                

26  of a taxing unit approves the additional millage rate under                 

                                                                                

27  section 24e of the general property tax act,  Act No. 206 of the            


                                                                                

1   Public Acts of 1893  1893 PA 206, MCL 211.24e, which is due to              

                                                                                

2   distributions pursuant to this section, then an amount equal to             

                                                                                

3   50% of the distribution under this section  shall  may be used              

                                                                                

4   for substance abuse treatment within the taxing unit.