HB-4612, As Passed House, May 12, 2004                                      

SUBSTITUTE FOR

HOUSE BILL NO. 4612

                     (As amended May 12, 2004)                              

                                                                             A bill to amend the Initiated Law of 1996, entitled                               

"Michigan gaming control and revenue act,"                                  

by amending section 12 (MCL 432.212), as amended by 1997 PA 69.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 12.  (1) A wagering tax is imposed on the adjusted                     

2   gross receipts received by the licensee from gaming authorized              

3   under this act at the rate of  18% 36%.  If a city  does

4   exercises either of the options in subsection (4), the tax rate             

5   under this subsection shall be  8.1% and 26.1%, [6.9%] to be               

6   deposited in the general fund and 17.1% to be deposited in the              

7   state school aid fund to provide additional funds for K-12                  

8   classroom education.  If the city rescinds or is otherwise unable           

9   to exercise 1 of the options in subsection (4), the tax rate                

10  under this subsection shall be  18% 36%.  A tax rate of  18%

House Bill No. 4612 (H-5) as amended May 12, 2004

1   36% imposed under this subsection shall cover any period for                

2   which the city does not or is unable to exercise 1 of the options           

3   in subsection (4).                                                          

4       (2) The state casino gaming fund is created in the department               

5   of treasury.  The fund  is to shall be administered by the                 

6   department in accordance with this act.  Except as provided in              

7   sections 12a and 13, the wagering tax plus all other fees, fines,           

8   and charges imposed by the state shall be deposited into the                

9   state casino gaming fund.  The wagering tax is to be remitted               

10  daily by the holder of a casino license to the department of                

11  treasury by electronic wire transfer of funds.  The state shall             

12  remit the city's portion of the wagering tax to the city daily by           

13  electronic wire transfer of funds as provided by this act.                  

14      (3) If the state imposes a wagering tax equal to  18% 36% of               

15  adjusted gross receipts, the state casino gaming fund shall be              

16  allocated as follows:                                                       

17      (a)  55% [Thirty-three and one-half percent] to the city in                

18  which a casino is located for use in connection with the                    

19  following:                                                                  

20                                                                               (i) The hiring, training, and deployment of street patrol                           

21  officers.                                                                   

22      (ii) Neighborhood and downtown economic development programs                 

23  designed to create local jobs.                                              

24      (iii) Public safety programs such as emergency medical                       

25  services, fire department programs, and street lighting.                    

26      (iv) Anti-gang and youth development programs.                               

27      (v) Other programs that are designed to contribute to the                   

House Bill No. 4612 (H-5) as amended May 12, 2004

1   improvement of the quality of life in the city.                             

2       (vi) Relief to the taxpayers of the city from 1 or more taxes                

3   or fees imposed by the city.                                                

4       (vii) The costs of capital improvements.                                     

5       (viii) Road repairs and improvements.                                         

6       (b)  45% Forty-seven and one-half percent to the state to be               

7   deposited in the state school aid fund to provide additional                

8   funds for K-12 classroom education.                                         

9   (c) [Nineteen percent] to be deposited in the general fund.

10      (4) A city in which a licensee is located may do 1 of the                   

11  following:                                                                  

12      (a) In the development agreement into which the city is                     

13  entitled to enter, include a provision that requires the licensee           

14  located in the city to pay the city a payment equal to [9.9% 12%] of        

15  the adjusted gross receipts received by the licensee from gaming            

16  authorized under this act.                                                  

17      (b) By ordinance, levy, assess, and collect an excise tax                   

18  upon licensees located in the city at a rate of [9.9% 12%]of the            

19  adjusted gross receipts received by the licensee from gaming                

20  authorized under this act.                                                  

21      (5) Payments  of any to a city of an amount required  to a                 

22  city  under subsection (4) shall be made in a manner, at those              

23  times, and subject to reporting requirements and penalties and              

24  interest for delinquent payment as may be provided for in the               

25  development agreement  ,  if the payment is required under a                

26  development agreement, or by ordinance if the payment is required           

27  for a tax levied by the city.  Payments required under                      

1   subsection (4)(a) may be in addition to any other payments which            

2   may be required in the development agreement for the conveyance             

3   of any interest in property, the purchase of services, or the               

4   reimbursement of expenses.  Payments to a city under                        

5   subsection (4) shall be used by the city for the purposes listed            

6   in subsection (3)(a).                                                       

7       (6) Approval by the city of a development agreement or                      

8   adoption of an ordinance approving either casino gaming or the              

9   levy of a local excise tax  shall not be considered does not               

10  constitute the granting of a franchise or license by the city for           

11  purposes of any statutory, charter, or constitutional provision.            

12      (7) The wagering tax imposed under subsection (1) and any tax               

13  imposed under section 13(2) shall be administered by the                    

14  department of treasury in accordance with 1941 PA 122, MCL 205.1            

15  to 205.31, and this act.  In case of conflict between the                   

16  provisions of 1941 PA 122, MCL 205.1 to 205.31, and this act, the           

17  provisions of this act shall prevail.                                       

18      (8) Funds from this act shall not be used so supplant                       

19  existing state appropriations or local expenditures.