Bill Text: MI HB5370 | 2023-2024 | 102nd Legislature | Introduced

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Bill Title: Taxation: excise taxes; tax levy per gallon of paint; provide for, and earmark revenue for a lead remediation program. Creates new act.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced) 2023-12-31 - Bill Electronically Reproduced 11/14/2023 [HB5370 Detail]

Download: Michigan-2023-HB5370-Introduced.html

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HOUSE BILL NO. 5370

A bill to provide for the levy, collection, and administration of an excise tax on the privilege of selling certain paint in this state; to provide for the disposition of the proceeds of the excise tax; to prescribe the powers and duties of certain state departments, agencies, and officials; to allow the promulgation of rules; and to provide for certain exemptions.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Architectural paint" means interior and exterior architectural coatings sold in containers of 5 gallons or less. Architectural paint does not include industrial coatings, original equipment coatings, or specialty coatings.

(b) "Department" means the department of treasury.

(c) "Wholesaler" means a person that makes a sale for the purposes of resale.

Sec. 2. There shall be levied and collected an excise tax on the privilege of selling architectural paint in this state at a rate of 25 cents per gallon. The department may allocate the excise tax on a per-ounce basis for amounts less than 1 gallon. The excise tax shall be collected from the manufacturer if the architectural paint is manufactured in this state, by the wholesaler or the person from whom the architectural paint is purchased if manufactured outside this state but sold in this state, or from the purchaser if the architectural paint is manufactured and purchased outside of this state.

Sec. 3. The excise tax imposed by this act shall be collected at the same time and in the same manner as the tax imposed by the use tax act, 1937 PA 94, MCL 205.91 to 205.111.

Sec. 4. (1) The excise tax imposed by this act shall be administered by the state treasurer under 1941 PA 122, MCL 205.1 to 205.31.

(2) The state treasurer shall prescribe the forms necessary for the administration of this act and may promulgate necessary rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

Sec. 5. A taxpayer may obtain reimbursement by adding the amount of the excise tax to the sale price of the architectural paint.

Sec. 6. Proceeds from the collection of the excise tax imposed by this act shall be deposited in the state treasury in a restricted account to be used only for lead abatement and lead reduction in residential dwellings as provided in part 54a of the public health code, 1978 PA 368, MCL 333.5451 to 333.5477.

Sec. 7. The manufacturer of architectural paint in this state or the wholesaler or person from whom architectural paint is purchased in this state shall provide the purchaser of the architectural paint with a certificate certifying that the excise tax has been or shall be paid.