SB-0399, As Passed Senate, June 18, 2003                                    

SUBSTITUTE FOR

SENATE BILL NO. 399

                                                                             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                    

2   under this act shall be deposited by the department in the state            

3   treasury to the credit of the general fund, except as otherwise

4   provided in 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                  

7   townships pursuant to the Glenn Steil state revenue sharing act             

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

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

10  MCL 141.901 to 141.921.                                                     

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

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

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

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

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

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

6   state school aid fund.                                                      

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

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

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

10  directly or indirectly on fuels sold to propel motor vehicles               

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

12  of the parts and accessories of motor vehicles by new and used              

13  car businesses, used car businesses, accessory dealer businesses,           

14  and gasoline station businesses as classified by the department             

15  of treasury remaining after the allocations and distributions are           

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

17  shall be deposited each year into the respective funds:                     

18      (a)  Not Through the fiscal year ending September 30, 2003

19  and for the fiscal year ending September 30, 2006 and each fiscal           

20  year ending after September 30, 2006, not less than 27.9% to the            

21  comprehensive transportation fund.   However, for the fiscal year           

22  ending September 30, 1991 only, the amount to be deposited in the           

23  comprehensive transportation fund shall be reduced by                       

24  $1,500,000.00. Except as otherwise provided in subdivision (b),            

25  for the fiscal year ending September 30, 2004 and the fiscal year           

26  ending September 30, 2005, not less than 24% shall be deposited             

27  each year in the comprehensive transportation fund.

1   (b) In the fiscal year ending September 30, 2004 only, the                  

2   amount deposited in the comprehensive transportation fund under             

3   subdivision (a) shall be reduced by $18,000,000.00.

4   (c)  (b)  The balance to the state general fund.                            

5       (5) After the allocations and distributions are made pursuant               

6   to subsections (2) and (3), an amount equal to the collections of           

7   the tax imposed at a rate of 4%  by under this act from the sale           

8   at retail of computer software as defined in section 1 shall be             

9   deposited in the Michigan health initiative fund created in                 

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

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

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

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

14  other money appropriated to the department of public health.  The           

15  funds deposited in the Michigan health initiative fund on an                

16  annual basis shall not be less than $9,000,000.00 or more than              

17  $12,000,000.00.                                                             

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

19  only on an appropriation or appropriations by the legislature.