HOUSE BILL No. 5686

February 16, 2006, Introduced by Reps. Nofs, Stahl, Schuitmaker, LaJoy, Stewart, David Law, Accavitti, Moolenaar, Wenke, Jones, Green, Moore, Marleau, Hansen, Kooiman, Hunter, Booher, Huizenga, Mayes, Farrah, Steil, Caswell, Dillon, Palsrok, Farhat, Vander Veen, Kahn, Proos, Clemente, Polidori, Plakas, Hune, Hildenbrand, Gaffney, Nitz, Alma Smith, Brandenburg, Rocca, Pearce, Emmons, Ball, Caul, Newell, Gosselin, Sheen, Taub, Shaffer and Pastor and referred to the Committee on Energy and Technology.

 

     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  section

 

61602 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.61602. 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.

 

     (b) The next $60,000,000.00, less the amount described in

 

subdivision (a), each fiscal year shall be credited to the general

 

fund and shall be available for any purpose for which the general

 

fund is made available by law.

 

     (c) The next $6,000,000.00 each fiscal year shall be credited

 

to the home heating credit fund created in the home heating credit

 

fund act.

 

     (d)  (b)  The remaining  revenue received during each fiscal

 

year that is not allocated pursuant to 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  

 

amount as provided in section 14a.

 

     (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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 93rd Legislature are


 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5687(request no.

 

04929'05 a *).

 

     (b) Senate Bill No.____ or House Bill No. 5688(request no.

 

05818'06).