May 17, 2005, Introduced by Reps. Cheeks, Lemmons, III, Lemmons, Jr., Cushingberry, Hunter, McConico, Condino, Gonzales, Zelenko, Williams, Phillips, Leland, Tobocman, Gaffney, Gillard, Farrah, Shaffer, Wenke, Sak, Clack, Murphy, Meisner, Brown, Alma Smith and Lipsey and referred to the Committee on Tax Policy.
A bill to provide for the levy, collection, and administration
of an excise tax on the privilege of selling certain food and
beverages in certain cities in this state; to provide for the
disposition of the proceeds of the tax; and to prescribe the powers
and duties of certain state departments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "fast-
food restaurant and food service tax act".
Sec. 2. As used in this act:
(a) "Eligible city" means a city with a population of 750,000
(b) "Fast-food restaurant" means a restaurant with a North
American industrial classification system (NAICS) of 722211, at
which patrons pay for the food and beverages selected or ordered
before eating or drinking, whether the food or beverages are
consumed on the premises, taken out, or delivered to another
(c) "Fund" means the fast-food restaurant and food service
fund created in section 6.
(d) "Prepared food and beverages" means all prepared food and
beverages subject to the collection of tax under the general sales
tax act, 1933 PA 167, MCL 205.51 to 205.78.
Sec. 3. (1) Subject to section 4, an excise tax is levied on
the gross monthly sales of prepared food and beverages sold at
fast-food restaurants in all eligible cities in this state.
(2) The rate of the excise tax is 2% of the gross monthly
sales of prepared food and beverages sold at fast-food restaurants.
(3) The excise tax shall be collected each month at the same
time and in the same manner as the tax imposed under the general
sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(4) The excise tax imposed under this act shall be
administered by the state treasurer under 1941 PA 122, MCL 205.1 to
(5) The state treasurer shall prescribe the forms necessary
for the administration of this act and may promulgate necessary
rules under the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
Sec. 4. The excise tax imposed under section 3 shall not be
imposed in an eligible city unless the governing body of the
eligible city approves by resolution the imposition of the excise
Sec. 5. A taxpayer may reimburse himself or herself by adding
the amount of the excise tax to the cost of prepared food and
beverages sold at a fast-food restaurant.
Sec. 6. (1) The fast-food restaurant and food service fund is
created within the state treasury.
(2) The proceeds from the collection of the excise tax imposed
under this act shall be deposited with the state treasurer and
credited to the fund.
(3) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall
credit to the fund interest and earnings from fund investments.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) The treasurer shall remit, upon appropriation, all
proceeds in the fund to the eligible city from which the proceeds