HB-4737, As Passed House, September 22, 2005
May 5, 2005, Introduced by Reps. Cushingberry, Lemmons, III, Lemmons, Jr., Murphy, Sheltrown, Sak, McConico, Clack, Vagnozzi and Cheeks and referred to the Committee on Tax Policy.
A bill to amend 1990 PA 100, entitled
"City utility users tax act,"
by amending section 2 (MCL 141.1152), as amended by 1998 PA 548.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) The governing body of a city having a population
of 750,000 or more, by a lawfully adopted ordinance that
incorporates by reference the uniform city utility users tax
ordinance set forth in chapter 2, may levy, assess, and collect
from those users in that city a utility users tax as provided in
the ordinance. However, a uniform city utility users tax ordinance
containing substantially the same provisions provided for in
chapter 2 adopted by the governing body of a city before June 13,
1990 that has not been rescinded by that governing body is
considered an ordinance adopted under this act and a tax imposed
and collected under that ordinance is revived. The governing body
shall set the rate of tax in increments of 1/4 of 1% that shall not
exceed 5%.
(2) A uniform city utility users tax ordinance may be lawfully
adopted or rescinded by the governing body at any time and its
adoption shall become effective on the first day of any month,
following adoption of the ordinance, as specified in the ordinance.
The ordinance may be rescinded at any time by the governing body in
the same manner in which the ordinance was adopted and with
appropriate enforcement, collection, and refund provisions with
respect to liabilities incurred before the effective date of its
rescission. The ordinance shall not be amended except as provided
by the legislature. A village and a city under 750,000 population
shall not impose and collect a utility users tax. A city that
adopts or rescinds the tax shall notify within 7 days by certified
mail all public utilities or resale customers affected by the
action of the governing body. Except as otherwise provided in this
section, a city now having or that may attain a population of
750,000 or more shall not impose a utility users tax except by
adopting the entire uniform city utility users tax ordinance as set
forth in chapter 2.
(3) The administrator, as that term is defined in chapter 2,
of the tax shall file a report indicating the total amount of
revenue collected in the prior fiscal year with the state revenue
commissioner by August 1 of each year, beginning on August 1, 1985.
The administrator shall make the report available to the public at
the same time.
(4)
The first $45,000,000.00 of revenue
generated from this
tax shall be used exclusively to retain or hire police officers.
(5)
If the amount of revenue collected in a fiscal year is in
excess
of $45,000,000.00 and if the amount of excess funds
collected
equals or exceeds 5% of $45,000,000.00, the city shall
comply
with 1 of the following:
(a)
The rate of tax imposed for the following fiscal year
shall
be lowered in decrements of 1/4 of 1% for each full 5%
collected
in excess of $45,000,000.00. By August 1 of a fiscal year
following
a fiscal year in which the amount of revenue collected
was
in excess of $45,000,000.00, the city shall notify by certified
mail
each collector of the tax subject to this act and the state
revenue
commissioner of the rate of tax to be applied. The rate
shall
become effective for bills issued beginning October 1 of a
fiscal
year following a fiscal year in which the amount of revenue
collected
was in excess of $45,000,000.00. If the tax expires, an
adjustment
shall not be made for an excess or deficiency in
collections
for a fiscal year or other period not already adjusted
pursuant
to this section.
(b)
The amount collected in excess of $45,000,000.00 shall be
dedicated
and used exclusively to hire and retain additional police
officers
over the level of police officers employed on November 1,
1984.
The hiring and retaining of additional police shall be
limited
to police officers, investigators, and police sergeants.
The
governing body or any other official of the city shall not
intentionally
lay off any police officers in anticipation of
rehiring
the officers with the additional revenue from this tax nor
shall
the general fund contribution towards the police budget be
reduced
from the prior year.
(6)
If a city fails to comply with subsection (5) by August 1
in
any fiscal year following a fiscal year in which the amount of
revenue
is in excess of $45,000,000.00, the state revenue
commissioner
shall implement the provisions of subsection (5)(a).