Bill Text: MI HB5120 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Taxation; hotel-motel tax; state convention facilities development act; modify distribution of funds. Amends sec. 10 of 1985 PA 106 (MCL 207.630).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-12-08 - Assigned Pa 156'09 With Immediate Effect [HB5120 Detail]
Download: Michigan-2009-HB5120-Introduced.html
HOUSE BILL No. 5120
June 17, 2009, Introduced by Rep. Johnson and referred to the Committee on Regulatory Reform.
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending sections 6 and 10 (MCL 207.626 and 207.630), section 10
as amended by 2008 PA 553.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. The excise tax imposed and levied by the state
pursuant
to this act shall be is in addition to any other taxes,
charges, or fees imposed by law upon accommodations.
Sec. 10. (1) Any money remaining in the convention facility
development fund that is not used for the bonds, obligations, or
other evidences of indebtedness described in section 9 shall be
distributed
pursuant to as provided in
subsection (2).
(2) Money in the convention facility development fund shall be
distributed as provided in subsection (4) in the following order of
priority in the following amounts:
(a) For each of the following fiscal years, the following
amounts shall be distributed to a metropolitan authority created
under the regional convention facility authority act, 2008 PA 554,
MCL 141.1351 to 141.1379, for the operational deficit costs of a
qualified convention facility operated by the authority under that
act:
(i) $9,400,000.00 for the fiscal year ending September 30,
2009.
(ii) $11,000,000.00 each fiscal year for the fiscal years
ending September 30, 2010 and September 30, 2011.
(iii) $9,000,000.00 each fiscal year for the fiscal years ending
September 30, 2012 and September 30, 2013.
(iv) $8,000,000.00 each fiscal year for the fiscal years ending
September 30, 2014 and September 30, 2015.
(v) $7,000,000.00 for the fiscal year ending September 30,
2016.
(vi) $6,000,000.00 for the fiscal year ending September 30,
2017.
(vii) $5,000,000.00 each fiscal year for the fiscal years
ending September 30, 2018 and September 30, 2019.
(viii) $5,000,000.00 for the fiscal year ending September 30,
2020.
(ix) $5,000,000.00 for the fiscal year ending September 30,
2021.
(x) $5,000,000.00 for the fiscal year ending September 30,
2022.
(xi) $5,000,000.00 for the fiscal year ending September 30,
2023.
(b) For fiscal years ending before October 1, 2009, an amount
equal to the difference, if any, between the tax imposed under this
act in the preceding state fiscal year that is designated under
section 9 to a qualified local governmental unit and the tax
imposed under this act that is designated under section 9 in the
state fiscal year immediately preceding the preceding state fiscal
year for the same local governmental unit shall be distributed to
that local governmental unit. This subdivision does not apply
unless a tax has been imposed under this act in the entire 2 state
fiscal years immediately preceding the state fiscal year in which a
distribution under this subdivision is made. Any amount distributed
under this subdivision shall be used by the local governmental unit
only
exclusively for the retirement of outstanding bonds,
obligations, or other evidences of indebtedness incurred for which
distributions under section 9 are pledged. A distribution under
this subdivision shall not be made to the extent that the
obligations, bonds, or other evidences of indebtedness cannot be
retired or are not outstanding.
(c) For fiscal years ending before October 1, 2015, an amount
equal to that portion of the liquor tax collected under section
1207 of the Michigan liquor control code of 1998, 1998 PA 58, MCL
436.2207, from licensees in counties in which convention hotels are
not located shall be distributed to those counties in which
convention hotels are not located in the same proportion that the
amount of tax collected under section 1207 of the Michigan liquor
control code of 1998, 1998 PA 58, MCL 436.2207, in the preceding
state fiscal year from the licensees in a county bears to the total
tax collections under section 1207 of the Michigan liquor control
code of 1998, 1998 PA 58, MCL 436.2207, in the preceding state
fiscal year from all counties in which convention hotels are not
located.
(d) For fiscal years ending before October 1, 2015, the
remaining money available after distributions under subdivisions
(a), (b), and (c) shall be distributed to each county in the
following amounts:
(i) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding state fiscal year under section 1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, from
licensees in counties in which convention hotels are not located
shall be distributed to each county in which convention hotels are
not located in the same proportion that the amount of tax collected
pursuant to section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, in the preceding state fiscal year
from licensees in that county bears to the total tax collections
from section 1207 of the Michigan liquor control code of 1998, 1998
PA 58, MCL 436.2207, in the preceding state fiscal year from all
counties in which convention hotels are not located.
(ii) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding state fiscal year under section 1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, from
licensees in counties in which convention hotels are located shall
be distributed to each county in which convention hotels are
located in the same proportion that the amount of tax collected
pursuant to section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, in the preceding state fiscal year
from licensees in that county bears to the total tax collections
from section 1207 of the Michigan liquor control code of 1998, 1998
PA 58, MCL 436.2207, in the preceding state fiscal year from all
counties in which convention hotels are located. However, in the
calculation of the proportion represented by a county's share of
distributions under this subparagraph, the amount of the tax
collected from licensees in the qualified local governmental unit
that received distributions under section 9 in fiscal year 2007-
2008 shall not be included.
(e) For the fiscal year ending September 30, 2016, an amount
equal to the product of the total amount of tax collected under
section 1207 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.2207, and distributed to all counties in the 2014-2015
fiscal year multiplied by 1.01 shall be distributed to all counties
as provided in this subdivision. For fiscal years beginning after
September 30, 2016, an amount equal to the product of the amount of
liquor tax distributions in the immediately preceding fiscal year
multiplied by 1.01, not to exceed the total amount of tax collected
under section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, shall be distributed to counties.
Distributions to each county under this subdivision shall be
calculated as follows:
(i) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
immediately preceding state fiscal year under section 1207 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
from licensees in counties in which convention hotels are not
located shall be distributed to each county in which convention
hotels are not located in the same proportion that the amount of
tax collected pursuant to section 1207 of the Michigan liquor
control code of 1998, 1998 PA 58, MCL 436.2207, in the immediately
preceding state fiscal year from licensees in that county bears to
the total tax collections from section 1207 of the Michigan liquor
control code of 1998, 1998 PA 58, MCL 436.2207, in the immediately
preceding state fiscal year from all counties in which convention
hotels are not located.
(ii) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
immediately preceding state fiscal year under section 1207 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
from licensees in counties in which convention hotels are located
shall be distributed to each county in which convention hotels are
located in the same proportion that the amount of tax collected
pursuant to section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, in the immediately preceding state
fiscal year from licensees in that county bears to the total tax
collections from section 1207 of the Michigan liquor control code
of 1998, 1998 PA 58, MCL 436.2207, in the immediately preceding
state fiscal year from all counties in which convention hotels are
located. However, in the calculation of the proportion represented
by a county's share of distributions under this subparagraph, the
amount of the tax collected from licensees in the qualified local
governmental unit that received distributions under section 9 in
the 2007-2008 state fiscal year shall not be included.
(f) Beginning with the fiscal year ending on September 30,
2016, and each fiscal year thereafter, if the revenue in the
convention facility development fund exceeds the amounts
distributed under section 9 and the distributions under subdivision
(e), the excess shall be distributed to a qualified local
governmental unit that is a metropolitan authority to be used by
that qualified local governmental unit only for the retirement of
outstanding bonds, obligations, or other evidences of indebtedness
incurred for which distributions under section 9 are pledged and
for a qualified governmental unit that is a metropolitan authority
or next for the payment of any unfunded operational deficit costs
incurred during the prior fiscal year by a metropolitan authority
created under the regional convention facility authority act, 2008
PA 554, MCL 141.1351 to 141.1379, for the operation of a qualified
convention facility under that act.
(3) A distribution to a county pursuant to this section shall
be included for purposes of the calculations required to be made by
section 24e of the general property tax act, 1893 PA 206, MCL
211.24e. If the governing body of a taxing unit approves the
additional millage rate under section 24e of the general property
tax act, 1893 PA 206, MCL 211.24e, which is due to distributions
pursuant to this section, then an amount equal to 50% of the
distribution under this section shall be used for substance abuse
treatment within the taxing unit.
(4) Beginning October 1, 2007 and each year thereafter, from
the revenue collected during the previous quarter, after
distributing the monthly payments under section 9(1), the state
treasurer shall make quarterly distributions under subsection
(2)(b) and (c) or under subsection (2)(e). From the revenue
collected in the last quarter of the state fiscal year, the state
treasurer shall make the distribution under subsection (2)(a) prior
to any distributions under subsection (2)(b) and (c) or (e).
