SB-0053, As Passed House, August 21, 2007

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 53

     A bill to amend 1964 PA 284, entitled

"City income tax act,"

(MCL 141.501 to 141.787) by adding section 36 to chapter 2.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

CHAPTER 2

     Sec. 36. (1) A taxpayer may designate on the annual return

required under this act that a contribution of a specified amount

of a refund due the taxpayer be credited to the checkoff fund which

shall be a restricted fund within the general fund of the city to

be used, except as otherwise permitted under subsection (4), for

the purposes specified pursuant to section 10 of chapter 1.

     (2) The purposes for which the money will be used shall be

clearly printed on the annual return or in the instruction book

that accompanies the annual return.

     (3) If a taxpayer's refund is not sufficient to make a

contribution under this section, the taxpayer may designate a

contribution amount and that contribution amount shall be added to

the taxpayer's tax liability for the tax year.

     (4) Notwithstanding any other allocations or disbursements

required by this ordinance, each year that the contribution

designation under this section is in effect, an amount equal to the

cumulative contributions made under this section, less the amount

appropriated to the city to implement this section, shall be

deposited into the checkoff fund of the city. The amount

appropriated to the city under this subsection shall not exceed 10%

of the cumulative contributions made that year.

     (5) The checkoff fund shall consist of the money credited to

the fund under this section, any interest and earnings accruing

from the saving and investment of that money, and other

appropriations, money, or things of value received by the checkoff

fund.

     (6) The city treasurer shall direct the investment of the

checkoff fund.

     (7) Money in the checkoff fund at the close of the year shall

remain in the checkoff fund and shall not lapse to the general fund

of the city or to any other fund of the city.

     (8) The money, interest, and earnings of the checkoff fund

shall be expended, except as otherwise permitted under subsection

(4), for the purposes specified in the amendment adopted as

required by section 10 of chapter 1.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 4120 of the 94th Legislature is enacted into

law.