CAPITOL HISTORIC SITE FUND REVENUE S.B. 956:
SUMMARY AS ENACTED
Senate Bill 956 (as enacted) PUBLIC ACT 309 of 2016
Senate Committee: Appropriations
House Committee: Appropriations
CONTENT
The bill amended the Tobacco Products Tax Act to eliminate any inflationary adjustment to the amount of cigarette tax directed to the Capitol Historic Site Fund if the inflationary adjustment would result in less than $3.0 million being directed to the Fund.
The Act levies a tax on cigarettes and other tobacco products and provides for the distribution of the revenue to a variety of funds. One portion of the total tax on cigarettes, levied at a rate of 75 cents per pack, is distributed to the Health and Safety Fund, the School Aid Fund, the Healthy Michigan Fund, and the General Fund. Of this portion of the tax, from the portion that would otherwise be distributed to the General Fund, the Act directs $3.0 million of revenue to the Capitol Historic Site Fund. (The Capitol Historic Site Fund is created in the Michigan State Capitol Historic Site Act, which establishes the State capitol as a historic site and charges a commission with maintaining, restoring, and improving the State Capitol building and surrounding grounds.)
Beginning in FY 2015-16, the Tobacco Products Tax Act requires that the amount of revenue directed to the Capitol Historic Site Fund be adjusted at the end of each calendar year to reflect the cumulative annual percentage change in the consumer price index. Under the bill, if the cumulative annual percentage in the consumer price index is negative, the adjustment for that fiscal year will be zero.
The bill took effect on October 6, 2016.
FISCAL IMPACT
The bill will have a negligible impact on General Fund revenue. The bill's provisions will apply only if the cumulative annual percentage change in the consumer price index is negative. Under the former law, if the cumulative annual percentage change in the consumer price index were negative, then the revenue directed to the Capitol Historic Site Fund would drop below $3.0 million. Under the bill, if the cumulative annual percentage change in the consumer price index is negative, no adjustment will be made to the revenue directed to the Fund.
On an annual basis, since 1970, the percentage change in the Detroit consumer price index has been negative in only two years: 2009 and 2015.
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.