HOUSE BILL No. 5204 September 30, 1997, Introduced by Reps. Green, Nye, Walberg and Hammerstrom and referred to the Committee on Tax Policy. 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,Act8No. 140 of the Public Acts of 1971, being sections 141.901 to9141.921 of the Michigan Compiled Laws1971 PA 140, MCL 141.901 10 TO 141.921. 04150'97 JJG 2 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 transportation 20 fund.However, for the fiscal year ending September 30, 199121only, the amount to be deposited in the comprehensive transporta-22tion fund shall be reduced by $1,500,000.00.23 (b) The balance to the state general fund. 24 (5) FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1998 AND EACH 25 FISCAL YEAR ENDING AFTER SEPTEMBER 30, 1998, 25% OF THE COLLEC- 26 TIONS OF THE GENERAL SALES TAX IMPOSED AT A RATE OF 4% DIRECTLY 27 OR INDIRECTLY ON FUELS SOLD TO PROPEL AIRCRAFT AND ON THE SALE OF 04150'97 3 1 AIRCRAFT REMAINING AFTER THE ALLOCATIONS AND DISTRIBUTIONS ARE 2 MADE PURSUANT TO SUBSECTIONS (2) AND (3) SHALL BE DEPOSITED EACH 3 YEAR INTO THE STATE AERONAUTICS FUND CREATED IN SECTION 34 OF THE 4 AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 327, MCL 5 259.34, AND SHALL BE USED FOR 1 OR MORE OF THE FOLLOWING 6 PURPOSES: 7 (A) AIRPORT CAPITAL IMPROVEMENTS INCLUDING, BUT NOT LIMITED 8 TO, THE FOLLOWING CATEGORIES: 9 (i) SAFETY. 10 (ii) ENVIRONMENTAL PRESERVATION. 11 (iii) INFRASTRUCTURE. 12 (iv) ECONOMIC DEVELOPMENT. 13 (B) THE OPERATION AND MAINTENANCE OF THE CIVIL AIR PATROL. 14 (6)(5)After the allocations and distributions are made 15 pursuant to subsections (2) and (3), an amount equal to the col- 16 lections of the tax imposed at a rate of 4% by this act from the 17 sale at retail of computer software as defined in section 1 shall 18 be deposited in the Michigan health initiative fund created in 19 section 5911 of the public health code,Act No. 368 of the20Public Acts of 1978, being section 333.5911 of the Michigan21Compiled Laws1978 PA 368, MCL 333.5911, and shall be considered 22 in addition to, and is not intended as a replacement for any 23 other money appropriated to the department ofpublicCOMMUNITY 24 health. The funds deposited in the Michigan health initiative 25 fund on an annual basis shall not be less than $9,000,000.00 or 26 more than $12,000,000.00. 04150'97 4 1 (7)(6)The balance in the state general fund shall be 2 disbursed only on an appropriation or appropriations by the 3 legislature. 04150'97 Final page. JJG