Bill Text: MI HB5120 | 2009-2010 | 95th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Engrossed.html

HB-5120, As Passed House, September 25, 2009

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5120

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1985 PA 106, entitled

 

"State convention facility development act,"

 

by amending section 10 (MCL 207.630), as amended by 2009 PA 61.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 or other purposes as described in

 

section 9 shall be distributed pursuant to 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 for purposes authorized under that act:

 

     (i) $11,000,000.00 each fiscal year for the fiscal years ending

 

September 30, 2010 and September 30, 2011.

 

     (ii) $9,000,000.00 each fiscal year for the fiscal years ending

 

September 30, 2012 and September 30, 2013.

 

     (iii) $8,000,000.00 each fiscal year for the fiscal years ending

 

September 30, 2014 and September 30, 2015.

 

     (iv) $7,000,000.00 for the fiscal year ending September 30,

 

2016.

 

     (v) $6,000,000.00 for the fiscal year ending September 30,

 

2017.

 

     (vi) $5,000,000.00 each fiscal year for the fiscal years ending

 

September 30, 2018 and September 30, 2019.

 

     (vii) $5,000,000.00 for the fiscal year ending September 30,

 

2020.

 

     (viii) $5,000,000.00 for the fiscal year ending September 30,

 

2021.

 

     (ix) $5,000,000.00 for the fiscal year ending September 30,

 

2022.

 

     (x) $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 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, and for

 

fiscal years ending after October 1, 2015 if the transfer and lease

 

of a qualified convention facility to an authority is disapproved

 

and the authority is dissolved under section 19(1) of the regional

 

convention facility authority act, 2008 PA 554, MCL 141.1369, 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. This

 

subdivision does not apply if the transfer and lease of a qualified

 

convention facility to an authority is disapproved and the

 

authority is dissolved under section 19(1) of the regional

 

convention facility authority act, 2008 PA 554, MCL 141.1369.

 


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.

 

     (g) Except as otherwise provided in subdivision (h), for For

 

the fiscal year ending September 30, 2009, $9,400,000.00 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 costs incurred by the authority for the

 


implementation of that act, creation of the authority, and transfer

 

or lease of a qualified convention facility to the authority, and

 

other costs relating to the management, operation, and development

 

of a qualified convention facility.

 

     (h) If the transfer and lease of a qualified convention

 

facility to an authority is disapproved and the authority is

 

dissolved under section 19(1) of the regional convention facility

 

authority act, 2008 PA 554, MCL 141.1369, then for the fiscal year

 

ending September 30, 2009, $9,400,000.00 shall be distributed to a

 

building authority for a county having a population of not less

 

than 1,000,000 and not more than 1,500,000 according to the most

 

recent federal decennial census for costs relating to the

 

management, operation, and development of a convention facility.

 

For the fiscal year ending September 30, 2009, $6,600,000.00 shall

 

be distributed to the general fund of this state.

 

     (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).

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