July 23, 2008, Introduced by Rep. Condino and referred to the Committee on Tax Policy.
A bill to amend 1974 PA 263, entitled
"An act to permit counties to impose and collect an excise tax on
persons engaged in the business of providing rooms for dwelling,
lodging, or sleeping purposes to transient guests; to provide for
the disposition of the revenues thereof; and to prescribe
penalties,"
by amending the title and sections 1, 2, 3, 4, and 7 (MCL 141.861,
141.862, 141.863, 141.864, and 141.867), section 2 as amended by
2004 PA 118 and section 7 as amended by 1989 PA 13.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to permit counties certain
local units of government to
impose and collect an excise tax on persons engaged in the business
of providing rooms for dwelling, lodging, or sleeping purposes to
transient guests; to provide for the disposition of the revenues;
thereof;
and to prescribe penalties.
Sec. 1. As used in this act:
(a) "Accommodations" means the room or other space provided
for sleeping, including furnishings and other accessories therein.
Accommodations do not include food and beverages.
(b) "Administrator" means the official designated by the
county
qualified local governmental
unit to collect the tax and to
administer and enforce the ordinance.
(c) "Convention and entertainment facilities" means all or any
part, or any combination of convention halls, auditoriums,
stadiums, music halls, arenas, meeting rooms, exhibit areas, and
related public areas.
(d) "Person" means a natural person, partnership, fiduciary,
association, corporation, or other entity.
(e) "Qualified local governmental unit" means 1 of the
following:
(i) A county with a population of less than 600,000 that
contains a city with a population of 40,000 or more.
(ii) A city with a population of more than 50,000 and less than
100,000 that contains 2,500 or more hotel rooms.
(f) (e)
"Revenues" means the
income derived from the tax, plus
interest and penalties imposed by this act, levied and assessed
under an ordinance adopted pursuant to this act.
(g) (f)
"Transient guest" means a
natural person staying less
than 30 consecutive days.
Sec.
2. (1) The county board of commissioners of a county
having
a population of less than 600,000 persons, and having a city
of
at least 40,000 population A
qualified local governmental unit
may enact an ordinance to levy, assess, and collect an excise tax
from all persons engaged in the business of providing rooms for
dwelling, lodging, or sleeping purposes, except in hospitals or
nursing homes, to transient guests, whether or not membership is
required for the use of the accommodations.
(2) If a qualified local governmental unit that is a county
meets the requirements of subsection (1) on the date it enacts an
ordinance under this act and, after the 1990 decennial census, the
county has a population of less than 120,000 persons and has a city
with
a population of 35,000 or more persons, that county qualified
local governmental unit may continue to levy, assess, and collect
the excise tax under this act until October 1, 1991.
(3)
If a county qualified
local governmental unit described in
subsection
(2) has any accommodations located within the a county
that are also located within the boundaries of a city in which the
majority of the population of that city reside in an adjoining
county, then the accommodation is exempt from the tax under this
act.
(4)
If a county qualified
local governmental unit described in
subsection
(2) has any accommodations located within the a county
that are also located within the boundaries of a city with a
population of less than 5,000 persons, then the accommodation is
exempt from tax under this act.
(5) The ordinance provided by this act may be amended or
repealed in the same manner as it was adopted.
(6) The tax imposed pursuant to this act shall be at a rate of
not more than 5% of the total charge for accommodations subject to
this act.
(7)
If a county qualified
local governmental unit meets the
requirements of subsection (1) on the date it enacts an ordinance
under
this act, the county qualified
local governmental unit may
continue to levy, assess, and collect the excise tax under this
act.
Sec.
3. A county qualified
local governmental unit levying a
tax pursuant to an ordinance adopted under this act shall provide
in the ordinance for:
(a) The effective date of the ordinance which shall be in
accordance with section 5.
(b) The rate of the tax to be imposed.
(c) The rate and manner of the imposition of interest and
penalties for delinquency in payment of taxes or other violations
of the ordinance. The interest imposed on delinquency in payment of
the
tax shall not be more than 1% per month or fraction thereof of
a
month of the unpaid tax after the due
date thereof until paid.
The penalty for delinquency in payment of the tax when due or other
violations of the ordinance may be in addition to the interest but
shall not be more than 5% of the amount of the unpaid tax per month
or
fraction thereof of a
month after the due date thereof until
paid. However, the penalty shall not exceed 25% of the unpaid tax.
(d) The determination and allowance of abatements and refunds.
(e) The designation of the administrator of the tax and
methods of collection.
Sec.
4. A county qualified
local governmental unit levying a
tax under this act may provide in the ordinance for:
(a) The adoption and enforcement of rules to apply, interpret,
effectuate, and administer the ordinance and the purposes of the
tax.
(b) The prescribing and furnishing to taxpayers of forms,
instructions, manuals, and other materials necessary for
indorsement of the tax and the auditing of tax returns.
(c) The examination by the administrator or his or her agent
of the books and records of a taxpayer for purposes of determining
the correctness of a tax return or information filed, or the
determination
of any tax liability thereunder under
this act.
(d) The imposition of a fine of not more than $500.00, or
imprisonment of not more than 90 days, or both for violation of the
ordinance.
Sec. 7. The revenues derived from the taxes imposed pursuant
to this act shall be deposited in a special fund to be used by the
county
qualified local governmental
unit or by an authority that is
organized pursuant to state law, together with other available
funds only to pay:
(a) The cost of administration and enforcement of the
ordinance.
(b) The financing of the acquisition, construction,
improvement, enlargement, repair, or maintenance of convention and
entertainment facilities, including, except as provided in
subdivision (e), the payment of principal and interest, when due,
on
bonds or other evidence of indebtedness issued by the county
qualified local governmental unit for convention and entertainment
facilities.
(c) Except as provided in subdivision (e), current or future
annual
rental payable by the county qualified
local governmental
unit to an authority organized pursuant to state law for the
purpose of acquiring, constructing, improving, enlarging,
repairing, or maintaining the convention and entertainment
facilities
and leasing them to the county a qualified local
governmental unit.
(d) The promotion and encouragement of tourist and convention
business
in the county qualified
local governmental unit.
(e) The principal and interest, when due, on bonds or other
evidence
of indebtedness issued by or on behalf of the county
qualified local governmental unit for the purpose of financing the
construction of a museum, or the current or future rental payable
by
the county qualified local
governmental unit to an authority
organized pursuant to state law for the purpose of constructing a
museum
and leasing it to the county qualified
local governmental
unit, only if the museum is located in a city with a population of
180,000 or more.