Bill Text: MI SB0619 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Use tax; collections; deposit of certain amount from general fund to Michigan promotion fund; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2010-04-13 - Assigned Pa 0037'10 With Immediate Effect [SB0619 Detail]
Download: Michigan-2009-SB0619-Introduced.html
SENATE BILL No. 619
June 3, 2009, Introduced by Senator ALLEN and referred to the Committee on Finance.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 21 (MCL 205.111), as amended by 1994 PA 34.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
21. (1) Except as provided in subsection (2) subsections
(2)
and (3), all money received and
collected under the provisions
of
this act shall be deposited by the
department of treasury , in
the state treasury to the credit of the general fund, to be
disbursed only by appropriations by the legislature.
(2) The collections from the use tax imposed at the additional
rate of 2% approved by the electors March 15, 1994 shall be
deposited in the state school aid fund established in section 11 of
article IX of the state constitution of 1963.
(3) Except as otherwise provided in subsection (4), all of the
tourism-generated increase in the collections of the tax imposed at
a rate of 4% under this act directly or indirectly from the sale of
tourist-oriented goods and services shall be deposited by the
department of treasury into the Michigan promotion fund. As used in
this subsection:
(a) "Michigan promotion fund" means the fund created in
section 39 of the Michigan strategic fund act, 1984 PA 270, MCL
125.2039.
(b) "Sale of tourist-oriented goods and services" means sales
by tourism businesses.
(c) "Tourism businesses" means those businesses registered
with the department of treasury under the following major industry
groups under the standard industrial classification code as
compiled by the United States department of labor:
(i) 581.
(ii) 582.
(iii) 583.
(iv) 584.
(v) 585.
(vi) 586.
(vii) 587.
(viii) 701.
(ix) 702.
(x) 703.
(xi) 751.
(xii) 792.
(xiii) 794.
(xiv) 842.
(d) "Tourism-generated increase" means an amount equal to the
increase in the collections of the tax imposed at a rate of 4%
under this act from the sale of tourism-oriented goods and services
by tourism businesses, calculated individually for each major
industry group identified under subdivision (c), in the current
fiscal year over the collections of the tax imposed at a rate of 4%
under this act from the sale of tourism-oriented goods and services
by tourism businesses, calculated individually for each major
industry group identified under subdivision (c), in the 2008 fiscal
year.
(4) Beginning January 1, 2013 and every 3 years thereafter,
the Michigan economic development corporation shall commission a
return on investment study with an independent private entity for
the 3 immediately preceding calendar years. The return on
investment study shall be reported to each house of the legislature
and to the governor not later than July 1 of that year. If the
return on investment study is not reported to each house of the
legislature and to the governor on or before July 1 or the return
on investment study shows that the funds disbursed under the
Michigan promotion fund in those 3 years have a ratio of return on
investment of less than 1 for 1, then the distribution under
subsection (3) shall cease on January 1 of the immediately
succeeding year.
