SENATE BILL No. 1271

May 16, 2000, Introduced by Senator STILLE and referred to the Committee on Finance.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.532) by adding section 484.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 484. (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

2 1999, FROM THE GROSS COLLECTIONS UNDER THIS ACT, THE AMOUNT

3 DETERMINED PURSUANT TO SUBSECTION (2) SHALL BE DEPOSITED EACH

4 YEAR IN THE AGRICULTURAL PROCESSING FACILITY FUND CREATED IN THE

5 AGRICULTURAL PROCESSING FACILITY ACT TO BE APPROPRIATED AND USED

6 SOLELY FOR THE PURPOSES OF THAT FUND.

7 (2) THE AMOUNT TO BE DEPOSITED IN THE AGRICULTURAL PROCESS-

8 ING FACILITY FUND EACH YEAR SHALL EQUAL THE EFFECTIVE TAX RATE AS

9 DETERMINED BY THE DEPARTMENT USING THE MOST RECENTLY AVAILABLE

10 TAX YEAR DATA MULTIPLIED BY THE PAYROLL OF QUALIFIED EMPLOYEES OF

11 EACH QUALIFIED EMPLOYER.

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1 (3) AN APPROPRIATION MADE PURSUANT TO THIS SECTION IS HEREBY

2 MADE FROM THE TAXES COLLECTED PURSUANT TO THIS ACT.

3 (4) A QUALIFIED EMPLOYER SHALL REPORT ALL NECESSARY INFORMA-

4 TION AS MAY BE REQUIRED BY THE DEPARTMENT TO COMPUTE THE DEPOSIT

5 TO THE AGRICULTURAL PROCESSING FACILITY FUND PURSUANT TO SUBSEC-

6 TION (1).

7 (5) AS USED IN THIS SECTION:

8 (A) "AVERAGE SALARY OF A QUALIFIED EMPLOYEE" MEANS THE TOTAL

9 PAYROLL OF A QUALIFIED EMPLOYER FOR ALL FULL-TIME EQUIVALENT

10 QUALIFIED EMPLOYEES DIVIDED BY THE NUMBER OF FULL-TIME EQUIVALENT

11 QUALIFIED EMPLOYEES OF THE QUALIFIED EMPLOYER.

12 (B) "EFFECTIVE TAX RATE" MEANS THE GROSS TAX LIABILITY AFTER

13 CREDITS OF ALL TAXPAYERS WITH ADJUSTED GROSS INCOME WITHIN THE

14 NEXT LOWER AND NEXT HIGHER INTEGRAL MULTIPLE OF $5,000.00 OF THE

15 AVERAGE SALARY OF A QUALIFIED EMPLOYEE DIVIDED BY THE AGGREGATE

16 ADJUSTED GROSS INCOME OF ALL TAXPAYERS WITH ADJUSTED GROSS INCOME

17 WITHIN THE NEXT LOWER AND NEXT HIGHER INTEGRAL MULTIPLE OF

18 $5,000.00 OF THE AVERAGE SALARY OF A QUALIFIED EMPLOYEE.

19 (C) "PAYROLL" MEANS TOTAL COMPENSATION SUBJECT TO WITHHOLD-

20 ING UNDER SECTION 351 BEFORE DEDUCTING ANY PERSONAL OR DEPENDENT

21 EXEMPTIONS.

22 (D) "QUALIFIED EMPLOYEE" MEANS A PERSON WHO IS EMPLOYED BY A

23 QUALIFIED EMPLOYER.

24 (E) "QUALIFIED EMPLOYER" MEANS THAT TERM AS DEFINED IN THE

25 AGRICULTURAL PROCESSING FACILITY ACT.

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