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.