HOUSE BILL No. 5280

 

October 11, 2005, Introduced by Reps. Amos, Shaffer, Booher, Caul, Jones, Stakoe, Vander Veen, Taub, Kolb, Byrnes, McDowell, Lipsey, Tobocman, Kathleen Law, Wojno, Mortimer, Leland, Elsenheimer, Wenke, Casperson, Marleau, Meyer, Brandenburg, Pastor, Farhat and Bieda and referred to the Committee on Appropriations.

 

     A bill to amend 1929 PA 48, entitled

 

"An act levying a specific tax to be known as the severance tax

upon all producers engaged in the business of severing oil and gas

from the soil; prescribing the method of collecting the tax;

requiring all producers of such products or purchasers thereof to

make reports; to provide penalties; to provide exemptions and

refunds; to prescribe the disposition of the funds so collected;

and to exempt those paying such specific tax from certain other

taxes,"

 

by amending section 14 (MCL 205.314), as amended by 1994 PA 307.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14. (1) All taxes shall accompany the report provided for

 

in section 2.  Except as provided in subsection (2), all  All

 

taxes, penalties, or costs paid to the state treasurer under this

 

act shall be paid into the state treasury and shall be credited as

 

follows:

 

     (a)  Two percent of the revenue received during each fiscal

 


year, but not less than $1,000,000.00 shall be credited to the

 

orphan well fund created in the orphan well fund act. However,

 

whenever the unexpended balance of the orphan well fund exceeds

 

$3,000,000.00, further revenues shall not be credited to the orphan

 

well fund under this subdivision until the unexpended balance of

 

the orphan well fund becomes less than $3,000,000.00.

 

$50,000,000.00 to the general fund.

 

     (b) The remaining revenue received during each fiscal year

 

that is not allocated  pursuant to  under subdivision (a) shall be

 

credited to the  general fund of the state and shall be available

 

for any purpose for which the general fund is made available by law

 

cultural destinations fund created under subsection (2).

 

     (2)  The revenue collected under subsection (1) in excess of

 

$16,000,000.00, shall be deposited in the general fund and shall be

 

allocated for the payment of credits for heating fuel costs

 

provided under section 527a of Act No. 281 of the Public Acts of

 

1967, being section 206.527a of the Michigan Compiled Laws, for the

 

fiscal year ending September 30, 1980 only.  The cultural

 

destinations fund is created in the state treasury and shall be

 

administered by the department of history, arts, and libraries as

 

authorized by the legislature through appropriations. The money

 

collected under subdivision (b) shall be deposited with the state

 

treasurer and credited to the fund. The state treasurer may receive

 

money or other assets from any source for deposit into the fund.

 

The state treasurer shall direct the investments of the fund and

 

credit to the fund interest and earnings from fund investments. No

 

money shall be expended from the funds except as specifically

 


authorized by this subsection. Money in the fund at the close of

 

the fiscal year shall remain in the fund and not lapse to the

 

general fund. The fund shall only be used for state park operations

 

and improvements, grants for arts and cultural projects, and grants

 

for historic preservation programs.