Bill Text: MI HB4555 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Economic development; other; stadia or convention facilities act to include certain short-term rentals; revise. Amends secs. 1, 2 & 6 of 1991 PA 180 (MCL 207.751 et seq.). TIE BAR WITH: HB 4554'19

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2019-05-07 - Bill Electronically Reproduced 05/02/2019 [HB4555 Detail]

Download: Michigan-2019-HB4555-Introduced.html

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HOUSE BILL No. 4555

 

 

May 2, 2019, Introduced by Reps. Ellison, Brixie, Tate, Hope, Garza, Sneller, Cynthia Johnson and Lilly and referred to the Committee on Commerce and Tourism.

 

     A bill to amend 1991 PA 180, entitled

 

"An act to assist in the financing of stadia or convention

facilities; to permit eligible municipalities to impose and collect

an excise tax on businesses engaged in the preparation and delivery

of food and beverages for immediate consumption, in leasing or

renting motor vehicles in the eligible municipality, and in

providing accommodations for dwelling, lodging, or sleeping

purposes; to limit the rate of that excise tax; to authorize voter

approval in a single ballot question of the excise tax authorized

by this act and of certain purposes for which the excise tax is

imposed; to provide for the establishment of procedures for the

collection, administration, and enforcement of the excise tax; to

prescribe the powers and duties of certain state departments and

state and local officials; to provide for the disposition and

transmittal of the revenues from the tax for stadia or convention

facility development and other purposes and authorize the pledge of

those revenues; to authorize the appointment of employees and

officials of a local governmental unit to an authority to which

revenues from the tax may be pledged; to prescribe penalties and

provide remedies; and to repeal certain acts and parts of acts,"

 

by amending sections 1, 2, and 6 (MCL 207.751, 207.752, and

 

207.756), section 1 as amended by 2008 PA 532.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Accommodations" means the room or other space provided

 

for sleeping, including furnishings and other accessories in the

 

room but not including the provision of food, beverages, telephone

 

services, television or movie services, or other similar services,

 

in a facility that is not a hospital, nursing home, emergency

 

shelter, community mental health or community substance abuse

 

treatment facility, or campground.

 

     (b) "Chief executive officer" means for a county the county

 

executive of a county or, if the county does not have an elected

 

county executive, the chairperson of the county board of

 

commissioners and for a city, the mayor.

 

     (c) "Convention facility" means a convention exhibition

 

facility, including meeting rooms and necessary sites, related

 

parking lots or structures, and appurtenant properties and

 

facilities, if the facility itself contains not less than 50,000

 

square feet of exhibition space and if the eligible municipality is

 

a county, the facility is located within the boundaries of the most

 

populous city in the county.

 

     (d) "Eligible county" means a county with a population of

 

1,500,000 or more persons that adopts or has adopted a charter

 

under 1966 PA 293, MCL 45.501 to 45.521, and that intends to impose

 

the tax authorized by this act for purposes related to a stadium as

 

defined under subdivision (i)(i).(j)(i).

 

     (e) "Eligible municipality" means any of the following:

 

     (i) An eligible county that intends to impose a tax under this

act for purposes related to a stadium as defined under subdivision

 

(i)(i).(j)(i).

 

     (ii) A county that is not a charter county that has a

 

population of more than 500,000 and contains a city with a

 

population of 180,000 or more persons, or the most populous city in

 

that county if either intends to impose a tax under this act for

 

purposes related to a stadium as defined under subdivision (i)(ii)

 

(j)(ii) or a convention facility.

 

     (iii) A county with a population of less than 200,000 that

 

contains a city with a population of more than 40,000 but less than

 

50,000, or the most populous city in that county if either intends

 

to impose a tax under this act for purposes related to a stadium as

 

defined under subdivision (i)(ii) (j)(ii) or a convention facility.

 

     (iv) A county with a population of less than 300,000 with a

 

city with a population of more than 100,000 persons, or the most

 

populous city within that county if either intends to impose a tax

 

under this act for purposes related to a stadium as defined under

 

subdivision (i)(ii) (j)(ii) or a convention facility.

 

     (v) A county with a population of more than 250,000 with an

 

optional unified form of government or a city within that county

 

that levies a city income tax if either intends to impose a tax

 

under this act for purposes related to a stadium as defined under

 

subdivision (i)(ii) (j)(ii) or a convention facility.

 

     (vi) A county with a population of less than 300,000 with a

 

city with a population of more than 70,000 persons, or the most

 

populous city within that county if either intends to impose a tax

 

under this act for purposes related to a stadium as defined under

subdivision (i)(ii).(j)(ii).

 

     (f) "Gross receipts" means that term as defined in former

 

section 7 of 1975 PA 228, or section 111 of the Michigan business

 

tax act, 2007 PA 36, MCL 208.1111, or section 607 of the income tax

 

act of 1967, 1967 PA 281, MCL 206.607. Gross receipts do not

 

include any amount received as reimbursement of sales tax or as

 

charges for use tax.

 

     (g) "Motor vehicle" means a motor vehicle subject to

 

registration and certificate of title under section 216 of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.216, that is designed

 

and intended to be used primarily in the transportation of

 

passengers. Motor vehicle does not include a road tractor, school

 

bus, special mobile equipment, tank vehicle, truck tractor,

 

implement of husbandry, or farm tractor as these terms are defined

 

by the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.

 

     (h) "Person" means an individual, partnership, corporation,

 

association, or other legal entity.

 

     (i) "Short-term rental" and "short-term transient facility"

 

mean those terms as defined in the Michigan short-term rental

 

promotion act.

 

     (j) (i) "Stadium" means a facility, including necessary sites,

 

related parking lots or structures, and appurtenant properties and

 

facilities, that is intended to provide space for any of the

 

following:

 

     (i) A professional baseball franchise, if the facility itself

 

contains not less than 25,000 seats and is located in the downtown

 

area of the most populous city in the eligible county.

     (ii) Professional sports or entertainment, if the facility

 

itself contains not less than 3,000 seats, is not a facility as

 

defined by subparagraph (i).

 

     (k) (j) "Transient guest" means a person who occupies an

 

accommodation for less than 30 consecutive days.

 

     Sec. 2. (1) The governing body of an eligible municipality, by

 

ordinance, may levy, assess, and collect an excise tax on the

 

privilege of operating the following businesses in the eligible

 

municipality:

 

     (a) A person engaged in the business of preparation and

 

delivery of food or alcoholic or nonalcoholic beverages for

 

immediate consumption either on or off the premises, who is

 

licensed to operate within the eligible municipality as a food

 

service establishment described under part 129 of the public health

 

code, Act No. 368 of the Public Acts of 1978, being sections

 

333.12901 to 333.12922 of the Michigan Compiled Laws. section 1107

 

of the food law, 2000 PA 92, MCL 289.1107. This subdivision does

 

not apply to a school district, to a nonprofit organization exempt

 

from paying sanitation fees under section 12906(3) of part 129 of

 

Act No. 368 of the Public Acts of 1978, being section 333.12906 of

 

the Michigan Compiled Laws, additional license fees under section

 

3119 of the food law, 2000 PA 92, MCL 289.3119, or to a grocery

 

store licensed under the food processing act of 1977, Act No. 328

 

of the Public Acts of 1978, being sections 289.801 to 289.810 of

 

the Michigan Compiled Laws, retail grocery described in section

 

1111 of the food law, 2000 PA 92, MCL 289.1111, whose sale of food

 

or beverages for immediate consumption is in a volume incidental to

the volume of its business as a grocery retail store.

 

     (b) A person engaged in the business of the leasing or rental

 

of motor vehicles of which delivery is made in the eligible

 

municipality.

 

     (c) A person engaged in the business of providing

 

accommodations for dwelling, lodging, or sleeping purposes in an

 

eligible municipality to transient guests, whether or not

 

membership is required for the use of the accommodations. A person

 

engaged in the business of providing accommodations for dwelling,

 

lodging, or sleeping includes short-term rentals of short-term

 

transient facilities.

 

     (2) The rate of tax imposed pursuant to subsection (1) shall

 

not exceed the following amounts:

 

     (a) 1% of the gross receipts received by the person subject to

 

tax under subsection (1)(a) from the sale of food and beverages,

 

including alcoholic beverages, for immediate consumption either on

 

or off the premises.

 

     (b) 2% of the gross receipts received by the person subject to

 

tax under subsection (1)(b) from the leasing or rental of motor

 

vehicles for periods of less than 30 consecutive days.

 

     (c) 1% of the gross receipts received by a person subject to

 

tax under subsection (1)(c) from the charges imposed for the use or

 

occupancy of accommodations provided in the eligible municipality

 

to transient guests, but excluding charges imposed as reimbursement

 

for the tax levied under the state convention facility development

 

act, Act No. 106 of the Public Acts of 1985, being sections 207.621

 

to 207.640 of the Michigan Compiled Laws, 1985 PA 106, MCL 207.621

to 207.640, or for assessments imposed under the convention and

 

tourism marketing act, Act No. 383 of the Public Acts of 1980,

 

being sections 141.881 to 141.889 of the Michigan Compiled Laws,

 

1980 PA 383, MCL 141.881 to 141.889, the regional tourism marketing

 

act, Act No. 244 of the Public Acts of 1989, being sections 141.891

 

to 141.900 of the Michigan Compiled Laws, 1989 PA 244, MCL 141.891

 

to 141.900, and the community convention or tourism marketing act,

 

Act No. 395 of the Public Acts of 1980, being sections 141.871 to

 

141.880 of the Michigan Compiled Laws.1980 PA 395, MCL 141.871 to

 

141.880.

 

     (3) The ordinance shall specify the date on which the

 

ordinance becomes effective, which shall not be earlier than 30

 

days after the date on which the ordinance is approved by a vote of

 

a majority of the electors of the eligible municipality voting on

 

the ordinance at a primary or general election or at a special

 

election called for that purpose. Any ordinance under this act

 

shall not be submitted to the electors of an eligible municipality

 

more than 2 times. The county clerk and all local election

 

officials within the county shall take those steps necessary to

 

conduct the election, the incremental expense of which shall be

 

reimbursed by the eligible county. The question presented to the

 

voters shall state the rates at which the tax is authorized and

 

that the purpose of the tax is principally to secure and fund the

 

payment of rentals by the eligible municipality to an authority

 

organized for the purpose of acquiring a stadium or convention

 

facility and leasing it to the eligible municipality. The question

 

presented may also request approval of the leasing and subleasing

of the stadium or convention facility by the eligible municipality.

 

However, if the question presented does not include a request for

 

approval of the leasing and subleasing of the stadium or convention

 

facility, a right of initiative and referendum exists, pursuant to

 

the terms of the local charter, in relation to the adoption or

 

execution of any contract, lease, or sublease for the stadium or

 

convention facility or of any amendment to any contract of lease or

 

sublease of any local unit of government necessary to allow the

 

eligible municipality to lease or sublease the stadium or

 

convention facility.

 

     (4) The ordinance imposing the excise tax authorized by this

 

act shall provide for the expiration of the excise tax not later

 

than the end of the fiscal year of the eligible municipality in

 

which obligations issued by an authority to which the revenues of

 

the excise tax are pledged as rentals under section 6 or any

 

obligations that may refund those obligations, in whole or in part,

 

are retired.

 

     (5) A right of initiative and referendum exists in relation to

 

any issue related to an ordinance adopted in a county that is not a

 

charter county. To invoke that initiative or referendum, petitions

 

signed by not less than 5% of the registered electors in the county

 

shall be filed with the county clerk of that county. The county

 

board of commissioners shall provide the time and manner of

 

submitting the question at the election and of determining the

 

result of the election.

 

     (6) An eligible municipality shall not levy the tax under this

 

act on businesses upon which another eligible municipality has

imposed the tax.

 

     Sec. 6. The revenues from the tax imposed under this act shall

 

be deposited in a special fund and shall be used and may be pledged

 

by the eligible municipality only for the following purposes or

 

paid to the following entities in the following order of priority:

 

     (a) Costs borne by the eligible municipality for the election

 

required under section 2(3) and in the administration and

 

enforcement of the ordinance.

 

     (b) Costs associated with the acquisition and construction of

 

a stadium as defined by section 1(i)(i) 1(j)(i) or with the

 

acquisition, improvement, enlargement, and construction of a

 

stadium as defined by section 1(i)(ii) 1(j)(ii) or convention

 

facility as defined by section 1(c), including the reimbursement of

 

those costs paid by an eligible municipality, and costs of current

 

or future annual rental payable for a stadium or convention

 

facility by an eligible municipality, or reimbursement of the

 

eligible municipality for rentals paid, to an authority that is

 

incorporated by the eligible municipality pursuant to Act No. 31 of

 

the Public Acts of the First Extra Session of 1948, being sections

 

123.951 to 123.965 of the Michigan Compiled Laws.1948 IL 1, MCL

 

123.951 to 123.965.

 

     (c) To the extent not needed for purposes identified in

 

subdivision (a) or (b) in any year or to maintain a reserve for

 

those purposes in future years, costs associated with the clearance

 

and improvement of land for assembly and development purposes.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4554 (request no.

01509'19) of the 100th Legislature is enacted into law.