MTF: SALES TAX REVENUE S.B. 149 (S-1):
SUMMARY OF SUBSTITUTE BILL
IN COMMITTEE
Senate Bill 149 (Substitute S-1)
Sponsor: Senator Roger Kahn, M.D.
Committee: Infrastructure Modernization
CONTENT
The bill would amend Public Act 51 of 1951, which generally governs appropriations for the State's transportation programs and the Michigan Transportation Fund (MTF), to do the following:
ˇ Allow for revenue received and collected under the General Sales Tax Act to be credited to the MTF.
ˇ Delete provisions that require an appropriation of up to $20.0 million to be made annually from the MTF to the Department of State for administration and enforcement of vehicle registration fees.
Public Act 151 describes the types of revenue that can be credited to the MTF in an express list of permitted fund sources. These sources generally include registration fees collected under the Michigan Vehicle Code, and taxes collected under the Motor Fuel Tax Act.
Under the bill, money received and collected under Section 25(5) of the General Sales Tax Act also could be credited to the MTF.
The bill is tie-barred to Senate Bill 6 and House Bill 4630. (Senate Bill 6 (S-1) would amend Section 25(5) of the General Sales Tax Act to dedicate 18% of the 4.0% sales tax on motor fuel to the MTF. House Bill 4630 (S-1) would amend the Michigan Vehicle Code to revise vehicle registration fees.)
FISCAL IMPACT
The bill would discontinue the appropriation of up to $20.0 million from the MTF to the Department of State for enforcement of vehicle registration requirements. This would result in more revenue for the Michigan Department of Transportation (MDOT), local road agencies, and the Comprehensive Transportation Fund (CTF). Assuming a $20.0 million savings to the MTF, approximately $7.0 million would be appropriated to MDOT, $7.0 million would be appropriated to county road authorities, $4.0 million to cities and villages, and $2.0 million to the CTF. However, removing this appropriation would reduce the resources that are available to the Department of State corresponding to the amount of the appropriation. According to MDOT, since 2007, the full $20.0 million has been appropriated to the Department of State.
With regard to the bill's provisions that would allow sales tax revenue to be credited to the MTF, the fiscal impact of these provisions would be contingent on the provisions of Senate Bill 6.
Fiscal Analyst: Glenn Steffens
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.