HOUSE BILL No. 4064

 

January 27, 2005, Introduced by Rep. Caswell and referred to the Committee on Tax Policy.

 

     A bill to amend 1985 PA 106, entitled

 

"State convention facility development act,"

 

by amending section 10 (MCL 207.630).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10. (1) Any money remaining in the convention facility

 

development fund at the end of the state fiscal year shall be

 

transferred to the general fund of the state treasury to be

 

distributed in the next state fiscal year pursuant to subsection

 

(2).

 

     (2) Money transferred from the convention facility development

 

fund to the general fund pursuant to subsection (1) shall be

 

distributed in the following order of priority in the following

 

amounts:

 


     (a) An amount equal to the difference, if any, between the tax

 

imposed  pursuant to  under this act in the preceding state fiscal

 

year that is designated  pursuant to  under section 9 to a

 

qualified local governmental unit and the tax imposed  pursuant to  

 

under this act that is designated  pursuant to  under section 9 in

 

the state fiscal year  prior to  immediately preceding the

 

preceding state fiscal year for the same local governmental unit

 

shall be distributed to that local governmental unit. This

 

subdivision  shall  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  pursuant to  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  

 

pursuant to  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.

 

     (b) Of the money transferred  pursuant to  under subsection

 

(1) and remaining after distributions under subdivision (a), an

 

amount equal to that portion of the liquor tax collected  pursuant

 

to the convention facility promotion tax act  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  pursuant to the convention facility promotion tax

 

act  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  

 

pursuant to the convention facility promotion tax act  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.

 

     (c) The remaining money transferred  pursuant to  under

 

subsection (1) after distributions under subdivisions (a) and (b)

 

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  the convention facility

 

promotion tax act  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  the

 

convention facility promotion tax act  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  the convention facility promotion

 

tax act  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  the convention facility

 

promotion tax act  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  the

 

convention facility promotion tax act  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  the convention facility promotion

 

tax act  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 the last state

 

fiscal year shall not be included.

 

     (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,  Act No. 206 of the

 

Public Acts of 1893, being section 211.24e of the Michigan Compiled

 

Laws  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,  Act No. 206 of the Public Acts of 1893  

 

1893 PA 206, MCL 211.24e, which is due to distributions pursuant to

 


this section, then an amount equal to 50% the following percentage

 

of the distribution under this section  shall  may be used for

 

substance abuse treatment within the taxing unit: .

 

     (a) For a county in the Upper Peninsula, 40%.

 

     (b) For a county in the Lower Peninsula, 25%.