SB-0613, As Passed Senate, December 15, 2015

SUBSTITUTE FOR

SENATE BILL NO. 613

     A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 25 (MCL 205.75), as amended by 2012 PA 226, and

by adding section 6c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6c. (1) Beginning April 1, 2016 and each calendar quarter

thereafter, each taxpayer making sales at retail of aviation fuel

shall, on or before the last day of the month in the month that

immediately follows the end of a calendar quarter, file an

informational report with the department on a form prescribed by

the department showing all of the following for the immediately

preceding calendar quarter:

     (a) The entire amount of the taxpayer's taxable sales at

retail of aviation fuel.

     (b) The gross proceeds of the taxpayer's business from taxable

sales at retail of aviation fuel.

     (c) The amount of tax for which the taxpayer is liable from

sales at retail of aviation fuel.

     (d) The number of taxable gallons of aviation fuel sold by the

taxpayer at each airport and the gross proceeds from the sales of

those gallons of aviation fuel.

     (e) Any other information the department considers necessary

for the proper administration of this act.

     (2) The report required under this section shall not include

any remittance for tax, and does not constitute a return or

otherwise alleviate the taxpayer's obligations under section 6.

     (3) A taxpayer required to file the informational report under

this section that fails or refuses to file the informational report

within the time and in the manner specified in this section shall

be liable for a penalty of $10.00 per day for each day for each

separate failure or refusal up to, but not exceeding, a maximum

penalty of $500.00 for each separate violation. The department may

waive the penalty if the taxpayer demonstrates to the satisfaction

of the department that the failure to file was due to reasonable

cause.

     (4) As used in this section, "aviation fuel" means fuel as

that term is defined in section 4 of the aeronautics code of the

state of Michigan, 1945 PA 327, MCL 259.4.

     Sec. 25. (1) All money received and collected under this act

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

credit of the general fund, except as otherwise provided in this

section.

     (2) Fifteen percent of the collections of the tax imposed at a

rate of 4% shall be distributed to cities, villages, and townships

pursuant to the Glenn Steil state revenue sharing act of 1971, 1971

PA 140, MCL 141.901 to 141.921.

     (3) Sixty percent of the collections of the tax imposed at a

rate of 4% shall be deposited in the state school aid fund

established in section 11 of article IX of the state constitution

of 1963 and distributed as provided by law. In addition, all of the

collections of the tax imposed at the additional rate of 2%

approved by the electors March 15, 1994 shall be deposited in the

state school aid fund.

     (4) Not less than 27.9% of 25% of the collections of the

general sales tax imposed at a rate of 4% directly or indirectly on

fuels sold to propel motor vehicles upon highways, on the sale of

motor vehicles, and on the sale of the parts and accessories of

motor vehicles by new and used car businesses, used car businesses,

accessory dealer businesses, and gasoline station businesses as

classified by the department of treasury shall be deposited each

year into the comprehensive transportation fund created in section

10b of 1951 PA 51, MCL 247.660b.

     (5) For the fiscal year ending September 30, 2013 only, an

amount equal to 18% of the collections of the tax imposed at a rate

of 4% under this act from the sale of motor fuel, as that term is

defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL

207.1004, shall be distributed as follows:

     (a) An amount sufficient to match available federal highway

funds shall be deposited into the state trunk line fund created in

section 11 of 1951 PA 51, MCL 247.661, for the purpose of matching

federal aid highway funds as those federal funds are made available

to this state, but not less than 39.1% subject to subdivision (c).

     (b) After the distribution under subdivision (a), any

remaining balance, subject to subdivision (c), shall be distributed

as follows:

     (i) 66% to the county road commissions of this state, which

distribution shall be administered under section 12 of 1951 PA 51,

MCL 247.662.

     (ii) 34% to the cities and villages of this state, which

distribution shall be administered under section 13 of 1951 PA 51,

MCL 247.663.

     (c) Funds distributed under this subsection shall not exceed

$100,000,000.00.

     (6) For the fiscal year ending September 30, 2013 only and

except as otherwise limited in this subsection after the

allocations and distributions are made pursuant to subsections (2)

and (3), an amount equal to the collections of the tax imposed at a

rate of 4% under this act from the sale at retail of aviation fuel

and aviation products shall be deposited in the state aeronautics

fund and shall be expended, on appropriation, only for those

purposes authorized in the aeronautics code of the state of

Michigan, 1945 PA 327, MCL 259.1 to 259.208. Not more than

$10,000,000.00 shall be deposited in the state aeronautics fund

under this subsection. As used in this subsection, "state

aeronautics fund" means the state aeronautics fund created in

section 34 of the aeronautics code of the state of Michigan, 1945

Senate Bill No. 613 as amended December 10, 2015

PA 327, MCL 259.34.

     (5) Beginning October 1, 2016 and the first day of each

calendar quarter thereafter, an amount equal to the collections for

the calendar quarter that is 2 calendar quarters immediately

preceding the current calendar quarter of the tax imposed under

this act at the additional rate of 2% approved by the electors on

March 15, 1994 from the sale at retail of aviation fuel shall be

distributed as follows:

     (a) An amount equal to 35% of the collections of the tax

imposed at a rate of 2% on the sale at retail of aviation fuel

shall be deposited in the state aeronautics fund and shall be

expended, on appropriation, only for those purposes authorized in

the aeronautics code of the state of Michigan, 1945 PA 327, MCL

259.1 to 259.208.

     (b) An amount equal to 65% of the collections of the tax

imposed at a rate of 2% on the sale at retail of aviation fuel

shall be deposited in the qualified airport fund and shall be

expended, on appropriation, only for those purposes authorized

under section [35] of the aeronautics code of the state of

Michigan, 1945 PA 327, MCL 259.35.

     (6) The department shall, on an annual basis, reconcile the

amounts distributed under subsection (5) during each fiscal year

with the amounts actually collected for a particular fiscal year

and shall make any necessary adjustments, positive or negative, to

the amounts to be distributed for the next successive calendar

quarter that begins January 1. The state treasurer or his or her

designee shall annually provide to the operator of each qualified

airport a report of the reconciliation performed under this

subsection. The reconciliation report is subject to the

confidentiality restrictions and penalties provided in section

28(1)(f) of 1941 PA 122, MCL 205.28.

     (7) An amount equal to the collections of the tax imposed at a

rate of 4% under this act from the sale at retail of computer

software as defined in section 1a shall be deposited in the

Michigan health initiative fund created in section 5911 of the

public health code, 1978 PA 368, MCL 333.5911, and shall be

considered in addition to, and is not intended as a replacement for

any other money appropriated to the department of community health

or its successor. The funds deposited in the Michigan health

initiative fund on an annual basis shall not be less than

$9,000,000.00 or more than $12,000,000.00.

     (8) The balance in the state general fund shall be disbursed

only on an appropriation or appropriations by the legislature.

     (9) As used in this section:

     (a) "Aviation fuel" means fuel as that term is defined in

section 4 of the aeronautics code of the state of Michigan, 1945 PA

327, MCL 259.4.

     (b) "Qualified airport" means that term as defined in section

109 of the aeronautics code of the state of Michigan, 1945 PA 327,

MCL 259.109.

     (c) "Qualified airport fund" means the qualified airport fund

created in section 34(2) of the aeronautics code of the state of

Michigan, 1945 PA 327, MCL 259.34.

     (d) "State aeronautics fund" means the state aeronautics fund

created in section 34(1) of the aeronautics code of the state of

Michigan, 1945 PA 327, MCL 259.34.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

     Enacting section 2. This amendatory act does not take effect

unless all of the following bills of the 98th Legislature are

enacted into law:

     (a) Senate Bill No. 418.

     (b) Senate Bill No. 425.

     (c) Senate Bill No. 426.

     (d) Senate Bill No. 612.

     (e) Senate Bill No. 614.