HOUSE BILL No. 4782

 

May 28, 2003, Introduced by Rep. Rivet and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1980 PA 395, entitled                                             

                                                                                

    "Community convention or tourism marketing act,"                            

                                                                                

    by amending section 3 (MCL 141.873), as amended by 1996 PA 589.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1) A bureau that intends to establish a marketing                 

                                                                                

2   program and assessment district shall file a marketing program              

                                                                                

3   notice with the director.  The marketing program notice shall               

                                                                                

4   state that the bureau proposes to create a marketing program                

                                                                                

5   under this act and cause an assessment to be collected from                 

                                                                                

6   owners of transient facilities within the assessment district to            

                                                                                

7   pay the costs of the marketing program.                                     

                                                                                

8       (2) The marketing program notice shall describe the                         

                                                                                

9   structure, membership, and activities of the bureau.                        

                                                                                

10      (3) The marketing program notice shall describe the marketing               

                                                                                

11  program to be implemented by the bureau with the assessment                 

                                                                                


                                                                                

1   revenues, specify the amount of the assessment proposed to be               

                                                                                

2   levied, which, except as provided in this subsection, shall not             

                                                                                

3   exceed  2%  5% of the room charges in the applicable payment                

                                                                                

4   period, and describe the municipalities comprising the assessment           

                                                                                

5   district.   A bureau described in subsection (8) may impose an              

                                                                                

6   assessment of 4% if the assessment and marketing program are                

                                                                                

7   approved by a majority of the transient facilities located within           

                                                                                

8   a township described in subsection (8) at a written referendum              

                                                                                

9   held by the director pursuant to section 3a by mail or in person            

                                                                                

10  for the purpose of which each owner shall have 1 vote for each              

                                                                                

11  room in an owner's transient facility.                                      

                                                                                

12      (4) Except as provided in section 10, an area shall not be                  

                                                                                

13  included in the marketing program notice filed under this act and           

                                                                                

14  the assessment district specified in the notice if the area is              

                                                                                

15  part of an existing assessment district under this act for which            

                                                                                

16  a marketing program is in effect.                                           

                                                                                

17      (5) If on the date of the mailing of the marketing program                  

                                                                                

18  notice under this act an excise tax or other tax based on a room            

                                                                                

19  charge is not being collected, a municipality included in the               

                                                                                

20  marketing program notice shall not be subject to the collection             

                                                                                

21  of an excise tax imposed under  Act No. 263 of the Public Acts of           

                                                                                

22  1974, being sections 141.861 to 141.867 of the Michigan Compiled            

                                                                                

23  Laws  1974 PA 263, MCL 141.861 to 141.867, or another tax based             

                                                                                

24  on a room charge.                                                           

                                                                                

25      (6) If a part of a municipality is subject to an assessment                 

                                                                                

26  under the convention and tourism marketing act,  Act No. 383 of             

                                                                                

27  the Public Acts of 1980, being sections 141.881 to 141.889 of the           


                                                                                

1   Michigan Compiled Laws  1980 PA 383, MCL 141.881 to 141.889, that           

                                                                                

2   part of the municipality shall not be included in a marketing               

                                                                                

3   program notice or assessment district under this act.                       

                                                                                

4       (7) Simultaneously with the filing of the marketing program                 

                                                                                

5   notice with the director, the bureau shall mail a copy of the               

                                                                                

6   notice, by registered or certified mail, to each owner of a                 

                                                                                

7   transient facility located in the assessment district specified             

                                                                                

8   in the notice, in care of the respective transient facility.  In            

                                                                                

9   assembling the list of owners to whom the notices shall be                  

                                                                                

10  mailed, the bureau shall use any data that is reasonably                    

                                                                                

11  available to the bureau.                                                    

                                                                                

12      (8) A bureau that is located within a township that is a                    

                                                                                

13  municipality and, except for the assessment made under this                 

                                                                                

14  subsection, that does not assess a room charge on the owners of a           

                                                                                

15  transient facility may impose an assessment of 4% if it meets all           

                                                                                

16  of the following:                                                           

                                                                                

17      (a) The assessment district is a township that is contiguous                

                                                                                

18  to a county that levies an excise tax of 5% under Act No. 263 of            

                                                                                

19  the Public Acts of 1974.                                                    

                                                                                

20      (b) The owners representing not less than 80% of the rooms in               

                                                                                

21  the assessment district are members of a nonprofit organization             

                                                                                

22  formed to promote convention business or tourism that receives              

                                                                                

23  funding from a tax levied under Act No. 263 of the Public Acts of           

                                                                                

24  1974, in the contiguous county.                                             

                                                                                

25      (c) The bureau contracts with the nonprofit organization                    

                                                                                

26  formed to promote convention business or tourism that receives              

                                                                                

27  funding from a tax levied under Act No. 263 of the Public Acts of           


                                                                                

1   1974, in the contiguous county to promote convention business or            

                                                                                

2   tourism and pays that nonprofit organization all of the                     

                                                                                

3   assessment revenues collected under this act for the promotion of           

                                                                                

4   convention business or tourism.                                             

                                                                                

5       (d) The owners representing not less than 80% of the rooms in               

                                                                                

6   the assessment district voluntarily contributed during the                  

                                                                                

7   nonprofit organization's preceding fiscal year to the nonprofit             

                                                                                

8   organization formed to promote convention business or tourism               

                                                                                

9   that receives funding from a tax levied under Act No. 263 of the            

                                                                                

10  Public Acts of 1974, in the contiguous county, an amount                    

                                                                                

11  equivalent to the 2% assessment permitted under this act for the            

                                                                                

12  promotion of convention business or tourism.