HOUSE BILL No. 4818


     May 22, 1997, Introduced by Reps. Llewellyn, Cropsey, Goschka, Walberg, Voorhees and Rhead and referred to the Committee on Appropriations.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   by amending section 25 (MCL 205.75), as amended by 1993 PA 325.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 25.  (1) All sums of money received and collected under

 2    this act shall be deposited by the department in the state trea-

 3    sury to the credit of the general fund, except as provided in

 4    this section.

 5         (2) Fifteen percent of the collections of the tax imposed at

 6    a rate of 4% shall be distributed to cities, villages, and town-

 7    ships pursuant to the state revenue sharing act of 1971,  Act

 8     No. 140 of the Public Acts of 1971, being sections 141.901 to

 9     141.921 of the Michigan Compiled Laws  1971 PA 140, MCL 141.901

10    TO 141.921.




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 1         (3) Sixty percent of the collections of the tax imposed at a

 2    rate of 4% shall be deposited in the state school aid fund

 3    established in section 11 of article IX of the state constitution

 4    of 1963 and distributed as provided by law.  In addition, all of

 5    the collections of the tax imposed at the additional rate of 2%

 6    approved by the electors March 15, 1994 shall be deposited in the

 7    state school aid fund.

 8         (4) For the fiscal year ending September 30, 1988 and each

 9    fiscal year ending after September 30, 1988, of the 25% of the

10    collections of the general sales tax imposed at a rate of 4%

11    directly or indirectly on fuels sold to propel motor vehicles

12    upon highways, on the sale of motor vehicles, and on the sale of

13    the parts and accessories of motor vehicles by new and used car

14    businesses, used car businesses, accessory dealer businesses, and

15    gasoline station businesses as classified by the department of

16    treasury remaining after the allocations and distributions are

17    made pursuant to subsections (2) and (3), the following amounts

18    shall be deposited each year into the respective funds:

19         (a) Not less than 27.9% to the  comprehensive  MICHIGAN

20    transportation fund.  However, for the fiscal year ending

21     September 30, 1991 only, the amount to be deposited in the com-

22     prehensive transportation fund shall be reduced by

23     $1,500,000.00. 

24         (b) The balance to the state general fund.

25         (5) After the allocations and distributions are made pursu-

26    ant to subsections (2) and (3), an amount equal to the

27    collections of the tax imposed at a rate of 4% by this act from



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 1    the sale at retail of computer software as defined in section 1

 2    shall be deposited in the Michigan health initiative fund created

 3    in section 5911 of the public health code,  Act No. 368 of the

 4     Public Acts of 1978, being section 333.5911 of the Michigan

 5     Compiled Laws  1978 PA 368, MCL 333.5911, and shall be considered

 6    in addition to, and is not intended as a replacement for any

 7    other money appropriated to the department of  public  COMMUNITY

 8    health.  The funds deposited in the Michigan health initiative

 9    fund on an annual basis shall not be less than $9,000,000.00 or

10    more than $12,000,000.00.

11         (6) The balance in the state general fund shall be disbursed

12    only on an appropriation or appropriations by the legislature.
































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