SENATE BILL No. 614

 

 

November 10, 2015, Introduced by Senator SCHMIDT and referred to the Committee on Commerce.

 

 

 

     A bill to amend 1937 PA 94, entitled

 

"Use tax act,"

 

by amending section 21 (MCL 205.111), as amended by 2014 PA 80, and

 

by adding section 6c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6c. (1) Beginning with the first calendar quarter

 

following the effective date of the amendatory act that added this

 

section and each calendar quarter thereafter, every person storing,

 

using, or consuming aviation fuel, the storage, use, or consumption

 

of which is subject to the tax imposed by this act when the tax was

 

not paid to a seller, and every seller collecting the tax from the

 

purchaser from sales 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 aviation fuel sold or purchased, as

 

applicable.

 

     (b) The amount of tax for which he or she is liable from the

 

purchase or sale of aviation fuel.

 

     (c) The number of gallons of aviation fuel sold or purchased,

 

as applicable, at each airport and the price for which those

 

gallons of aviation fuel were sold or purchased, as applicable.

 

     (d) 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 person's obligations under section 6.

 

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

 

(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 Subject to subsection (5), 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) 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.

 

     (5) Beginning with the first calendar quarter following the

 

effective date of the amendatory act that added section 6c and each

 

calendar quarter thereafter, from the money received and collected

 

under this act for the state share, 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 use, storage, or consumption of

 

aviation fuel shall be distributed as follows:

 

     (a) Thirty-five percent of the collections of the tax imposed

 

at a rate of 2% on the use, storage, or consumption 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) Sixty-five percent of the collections of the tax imposed

 

at a rate of 2% on the use, storage, or consumption 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(2) 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.

 

     (7) 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 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.

 

     (c) "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. 613.                                     

 

           

 

     (e) Senate Bill No. 612.