Bill Text: MI HB5604 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Taxation; excise taxes; entertainment tax; provide for, and earmark to history, arts, and libraries. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-12-01 - Printed Bill Filed 11/19/2009 [HB5604 Detail]
Download: Michigan-2009-HB5604-Introduced.html
HOUSE BILL No. 5604
November 18, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Tax Policy.
A bill to provide for the levy, collection, and administration
of an excise tax on the admission charge to an entertainment event
in this state; to provide for the disposition of the proceeds of
the tax; to prescribe the powers and duties of certain state
departments; 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
"entertainment event excise tax act".
Sec. 2. As used in this act:
(a) "Admission charge" means the actual charge, excluding
memberships, paid to attend the entertainment event.
(b) "Department" means the department of treasury.
(c) "Entertainment event" or "event" means 1 or more of the
following that is not an exempt event:
(i) Zoo.
(ii) Live theater.
(iii) Museum.
(iv) Opera.
(v) Professional sporting event.
(vi) Collegiate athletic event.
(vii) Concert.
(viii) Temporary or transient entertainment production.
(ix) Botanical gardens.
(x) Amusement parks.
(xi) Temporary or transient art, music, theatrical, dance,
literary, or cultural festival.
(xii) Topless events allowed pursuant to a topless activity
permit issued under section 916 of the Michigan liquor control code
of 1998, 1998 PA 58, MCL 436.1916.
(xiii) Events allowed pursuant to a special license as defined
in section 111 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.1111.
(d) "Exempt event" means an event that is 1 or more of the
following:
(i) All high school, middle school, and elementary or grade
school events.
(ii) Events sponsored by a nonprofit or charitable
organization, unless that organization received funds under this
act in the immediately preceding 12-month period.
(iii) Events sponsored by a nonprofit arts or cultural
organization that has an annual operating budget of less than
$200,000.00.
(iv) Individual fund-raising events sponsored or conducted by
and the proceeds of which benefit a nonprofit or charitable
organization.
(v) Paid-admission events presented within or as a
programmatic part of an art, culture, or entertainment facility or
festival for which a previously paid entry or gate admission has
been collected to that facility or festival which has a higher
ticket price.
(vi) State, county, local, or agricultural fairs.
(e) "History, arts, and library fund" means the history, arts,
and library fund created in section 6.
Sec. 3. (1) An excise tax is levied on the admission charge of
each entertainment event in this state.
(2) The rate of the excise tax is 2% of the admission charge
of the entertainment event.
Sec. 4. (1) The excise tax 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.
(2) The excise tax imposed by this act shall be administered
by the state treasurer under 1941 PA 122, MCL 205.1 to 205.31.
(3) 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 reimburse himself or herself by adding
the amount of the tax to the admission charge.
Sec. 6. (1) The history, arts, and library fund is created
within the state treasury.
(2) The proceeds from the collection of the excise tax imposed
under this act shall be deposited with the state treasurer and
credited to the fund.
(3) 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.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) The department shall expend money from the fund, upon
annual appropriation, for arts, culture, and history.