HB-5492, As Passed House, May 8, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5492

     A bill to amend 1937 PA 94, entitled

"Use tax act,"

by amending section 21 (MCL 205.111), as amended by 2010 PA 37.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 21. (1) Except as provided in subsections (2), and (3),

(4), and (5), all money received and collected under this act shall

be deposited by the department of treasury in the state treasury to

the credit of the general fund, to be disbursed only by

appropriations by the legislature.

     (2) The collections from the use tax imposed at the additional

rate of 2% approved by the electors March 15, 1994 shall be

deposited in the state school aid fund established in section 11 of

article IX of the state constitution of 1963.

     (3) For the fiscal year ending September 30, 2010 only,

$9,500,000.00 shall be deposited by the department of treasury into

the Michigan promotion fund. As used in this subsection, "Michigan

promotion fund" means the fund created in section 39 of the

Michigan strategic fund act, 1984 PA 270, MCL 125.2039.

     (3) From the money received and collected under this act for

the state share, an amount equal to all revenue lost under the

state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and

all revenue lost from basic school operating mills as a result of

the exemption of personal property under sections 9m, 9n, and 9o of

the general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and

211.9o, as determined by the department, shall be deposited into

the state school aid fund established by section 11 of article IX

of the state constitution of 1963. Funds deposited into the state

school aid fund under this subsection shall not include the portion

of the state share of the use tax imposed at the additional rate of

2% approved by the electors of this state on March 15, 1994 and

dedicated for aid to schools under subsection (2).

     (4) Money received and collected under this act for the local

community stabilization share is not state funds, shall not be

credited to the state treasury, and shall be transmitted to the

authority for deposit in the treasury of the authority, to be

disbursed by the authority only as authorized under the local

community stabilization authority act. The local community

stabilization share is a local tax, not a state tax, and money

received and collected for the local community stabilization share

is money of the authority and not money of this state.

House Bill No. 5492 (H-2) as amended May 8, 2014

     (5) For the fiscal year ending September 30, 2015 [through the

fiscal year ending September 30, 2021], from the money received and

collected under

this act remaining after the distributions under subsections (2)

and (3), an amount equal to 50% of the amount deposited in the

school aid fund established in section 11 of article IX of the

state constitution of 1963 under subsection (2) shall be

distributed to the state trunk line fund, county road commissions,

and the cities and villages of this state, in the same percentages

described in section 10(1)(j) of 1951 PA 51, MCL 247.660, and shall

be used for the purposes provided in 1951 PA 51, MCL 247.651 to

247.675.

     Enacting section 1. It is the intent of the Legislature that

the distribution of money received and collected under the use tax

act, 1937 PA 94, MCL 205.91 to 205.111, provided for in section

21(5) of the use tax act, 1937 PA 94, MCL 205.111, as added by this

amendatory act, shall apply only to the state share of the money

received and collected under the use tax act, 1937 PA 94, MCL

205.91 to 205.111, as described in section 3 of the use tax act,

1937 PA 94, MCL 205.93, and shall take place after distributions of

money received and collected under the use tax act, 1937 PA 94, MCL

205.91 to 205.111, to the state school aid fund as provided in

section 21(2) and (3) of the use tax act, 1937 PA 94, MCL 205.111.

     Enacting section 2. This amendatory act takes effect January

2, 2015.