Bill Text: MI HB5591 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Taxation; excise taxes; levy of a car rental assessment; establish, and earmark for construction and maintenance of certain roads. Creates new act.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2012-05-03 - Printed Bill Filed 05/03/2012 [HB5591 Detail]

Download: Michigan-2011-HB5591-Introduced.html

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HOUSE BILL No. 5591

 

May 2, 2012, Introduced by Reps. Geiss, Liss, Stallworth, Hovey-Wright and Womack and referred to the Committee on Tax Policy.

 

     A bill to impose a state assessment on persons engaged in the

 

business of leasing or renting a motor vehicle; to provide for the

 

levy, collection, and administration of the state assessment; to

 

provide for the disposition of the proceeds of the state

 

assessment; to prescribe the powers and duties of certain state

 

departments and certain public entities; and to provide for certain

 

exemptions.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"Michigan car rental assessment act".

 

     Sec. 2. As used in this act:

 

     (a) "Assessable transaction" means the lease or rental of a

 

motor vehicle designed for 8 or fewer passengers, regardless of

 

whether the vehicle is licensed in this state, for a period of less

 

than 31 days that commences at a commercial airport or at a

 

location within 1.1 miles of a commercial airport.

 

     (b) "Commercial airport" means an airport within this state

 

that has regularly scheduled commercial flights.

 

     (c) "Michigan car rental assessment fund" means the Michigan

 

car rental assessment fund created in section 7.

 

     (d) "Motor vehicle" means a motor vehicle that is or would be

 

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 those terms are defined

 

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

 

     (e) "Next Michigan development district" means that term as

 

defined in section 3 of the next Michigan development act, 2010 PA

 

275, MCL 125.2953.

 

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

 

association, limited liability company, or other legal entity.

 

     Sec. 3. Except as otherwise provided in this section or in

 

section 7 or 8, beginning with assessable transactions that begin

 

after September 30, 2012 there is imposed on persons engaged in the

 

rental or lease of motor vehicles an assessment of $1.00 for each

 

day or portion of a day of each assessable transaction.

 

     Sec. 4. (1) An assessment under this act shall be collected at

 

the same time and in the same manner as the tax imposed under the

 

use tax act, 1937 PA 94, MCL 205.91 to 205.111, and the general

 

sales tax act, 1933 PA 167, MCL 205.51 to 205.78.

 

     (2) The assessment imposed by this act shall be administered

 

by the department of treasury under 1941 PA 122, MCL 205.1 to

 

205.31.

 

     Sec. 5. (1) The assessment provided for under this act is a

 

tax that is levied on a person engaged in the business of rental or

 

lease of motor vehicles.

 

     (2) A taxpayer may reimburse himself or herself by adding the

 

amount of the assessment to the rental transaction.

 

     Sec. 6. The proceeds from the collection of the assessment

 

imposed under this act shall be deposited with the state treasurer

 

and credited to the Michigan car rental assessment fund.

 

     Sec. 7. (1) The Michigan car rental assessment fund is created

 

within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) The department of treasury shall be the administrator of

 

the fund for auditing purposes.

 

     (5) The department of treasury shall expend money from the

 

fund, upon appropriation, only for 1 or more of the following

 

purposes:

 

     (a) If the commercial airport from which the assessment was

 

collected is located within or connected to a next Michigan

 

development district, only for road construction and maintenance

 

within that next Michigan development district that are located

 

within 1.1 miles of the commercial airport.

 

     (b) If the commercial airport from which the assessment was

 

collected is not located within or connected to a next Michigan

 

development district, only for road construction and maintenance

 

within 1.1 miles of the commercial airport.

 

     Sec. 8. This act does not apply to a motor vehicle provided at

 

no charge to a person whose motor vehicle is being repaired,

 

adjusted, or serviced by the entity providing the replacement motor

 

vehicle.

 

     Sec. 9. This act does not apply to a motor vehicle provided to

 

a person whose motor vehicle is being repaired, adjusted, replaced,

 

or serviced, and who submits an insurance claim, accident report,

 

or written estimate from a motor vehicle repair facility dated

 

within 7 days of the lease or rental of a motor vehicle.