SENATE BILL No. 544

 

 

May 25, 2007, Introduced by Senator SCHAUER and referred to the Committee on Finance.

 

 

 

     A bill to levy an excise tax on the bottling of water; to

 

provide for the levy, collection, and administration of the excise

 

tax; to provide certain reporting requirements; to provide for

 

certain penalties; to provide certain exemptions and refunds; and

 

to provide for the distribution of the excise tax.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"bottled water excise tax act".

 

     Sec. 2. As used in this act:

 

     (a) "Bottled water operator" means a person engaged in the

 

business of bottling or packaging water for sale in containers of

 

5.7 gallons or less.

 


     (b) "Bottled water excise tax" means the excise tax imposed

 

under section 3.

 

     (c) "Department" means the department of treasury.

 

     (d) "Person" means an individual, partnership, corporation,

 

association, governmental entity, or other legal entity.

 

     Sec. 3. (1) The bottled water excise tax is levied on each

 

bottled water operator engaged in the business of bottling water in

 

this state.

 

     (2) The bottled water excise tax is imposed at a rate of 20

 

cents per gallon.

 

     Sec. 4. (1) Each bottled water operator shall prepare and

 

submit to the department a report on or before the twenty-fifth day

 

of each month in the form and manner required by the department,

 

showing the total amount of water bottled during the preceding

 

month and other information required by the department.

 

     (2) The bottled water excise tax shall be paid each month to

 

the department at the same time the report is submitted.

 

     Sec. 5. Each bottled water operator shall prepare, keep, and

 

preserve a full and complete record of all water bottled in this

 

state, and that record shall be open at all times to the inspection

 

of the state tax commission.

 

     Sec. 6. (1) The bottled water excise tax imposed by this act

 

shall be administered by the department of treasury, under 1941 PA

 

122, MCL 205.1 to 205.31, and this act. In case of conflict between

 

1941 PA 122, MCL 205.1 to 205.31, and this act, the provisions of

 

this act shall prevail.

 

     (2) The department may promulgate rules to implement this act

 


pursuant to the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328.

 

     Sec. 7. In an action filed under the direction of the attorney

 

general, the circuit court for the county of Ingham may restrain by

 

injunction any bottled water operator or person who has failed to

 

comply with this act and in the same manner to restrain any bottled

 

water operator or person from continuing to bottle water while

 

delinquent in the filing of any report or the paying of any tax,

 

penalty, or cost required under this act.

 

     Sec. 8. All taxes, penalties, or costs paid to the department

 

under this act shall be paid into the state treasury and shall be

 

credited as follows:

 

     (a) $10,000,000.00 to the clean water fund created in section

 

8807 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.8807.

 

     (b) $10,000,000.00 to the water quality protection fund

 

created in section 811i of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.811i.

 

     (c) All additional revenues beyond those provided for in

 

subdivisions (a) and (b), to the general fund of the state.