SENATE JOINT RESOLUTION J

 

 

January 30, 2013, Introduced by Senators RICHARDVILLE, KAHN and CASWELL and referred to the Committee on Appropriations.

 

 

 

     A joint resolution proposing an amendment to the state

 

constitution of 1963, by amending sections 8 and 40 of article IX,

 

to increase the sales tax rate and to dedicate that revenue to

 

transportation purposes and certain other uses.

 

     Resolved by the Senate and House of Representatives of the

 

state of Michigan, That the following amendment to the state

 

constitution of 1963, to increase the sales tax rate and to

 

dedicate that revenue to transportation purposes and certain other

 

uses, is proposed, agreed to, and submitted to the people of the

 

state:

 

ARTICLE IX

 

     Sec. 8. Except as provided in this section, the Legislature

 

shall not impose a sales tax on retailers at a rate of more than 4%

 

of their gross taxable sales of tangible personal property.

 


     Beginning May 1, 1994, the sales tax shall be imposed on

 

retailers at an additional rate of 2% of their gross taxable sales

 

of tangible personal property not exempt by law and the use tax at

 

an additional rate of 2%. The proceeds of the sales and use taxes

 

imposed at the additional rate of 2% shall be deposited in the

 

state school aid fund established in section 11 of this article.

 

The allocation of sales tax revenue required or authorized by

 

sections 9 and 10 of this article does not apply to the revenue

 

from the sales tax imposed at the additional rate of 2%.

 

     Beginning October 1, 2013, the sales tax shall be imposed on

 

retailers at an additional rate of 2% of their gross taxable sales

 

of tangible personal property not exempt by law and the use tax at

 

an additional rate of 2%. The proceeds of the sales and use taxes

 

imposed at the additional rate of 2% shall, after the payment of

 

necessary collection expenses, be used exclusively as set forth in

 

this paragraph. Seven-tenths of 1% of the proceeds of the sales and

 

use taxes imposed at the additional rate of 2% shall, after the

 

payment of necessary collection expenses, be deposited in the

 

recreation improvement account of the Michigan conservation and

 

recreation legacy fund created in section 40 of this article. Not

 

less than 90% of the proceeds of the sales and use taxes imposed at

 

the additional rate of 2% shall, after the payment of necessary

 

collection expenses, be used exclusively for the transportation

 

purposes of planning, administering, constructing, reconstructing,

 

financing, and maintaining state, county, city, and village roads,

 

streets, and bridges designed primarily for the use of motor

 

vehicles using tires, and reasonable appurtenances to those state,

 


county, city, and village roads, streets, and bridges. The balance,

 

if any, of the proceeds of the sales and use taxes imposed at the

 

additional rate of 2%, after the payment of necessary collection

 

expenses, shall be used exclusively for the transportation purposes

 

of comprehensive transportation purposes as defined by law. The

 

legislature may authorize the incurrence of indebtedness and the

 

issuance of obligations pledging the proceeds of the sales and use

 

taxes imposed at the additional rate of 2% allocated or authorized

 

to be allocated by this paragraph, which obligations shall not be

 

construed to be evidences of state indebtedness under this

 

constitution.

 

     No sales tax or use tax shall be charged or collected from and

 

after January 1, 1975 on the sale or use of prescription drugs for

 

human use, or on the sale or use of food for human consumption

 

except in the case of prepared food intended for immediate

 

consumption as defined by law. This provision shall not apply to

 

alcoholic beverages.

 

     Sec. 40. The Michigan conservation and recreation legacy fund

 

is established. The state treasurer shall direct the investment of

 

the legacy fund. The state treasurer shall establish within the

 

legacy fund restricted accounts as authorized by this section and

 

may establish additional subaccounts as authorized by law. The

 

state treasurer may receive gifts, grants, bequests, or assets from

 

any source for deposit into a particular account or subaccount. The

 

assets of the legacy fund shall be invested as provided by law.

 

Interest and earnings accruing from each account or subaccount

 

shall be credited to that account or subaccount.

 


     The forest recreation account is established as an account

 

within the legacy fund. The forest recreation account shall consist

 

of revenue derived from concessions, leases, contracts, and fees

 

from recreational activities on state forestlands and other

 

revenues as authorized by law. Money in the forest recreation

 

account shall be expended only for the following:

 

     (a) The development, improvement, operation, promotion, and

 

maintenance of forest recreation activities.

 

     (b) Grants to state colleges and universities to implement

 

programs funded by the forest recreation account.

 

     (c) The administration of the forest recreation account.

 

     The game and fish protection account is established as an

 

account within the legacy fund. The game and fish protection

 

account shall consist of revenue derived from hunting and fishing

 

licenses, passbooks, permits, fees, concessions, leases, contracts,

 

and activities; damages paid for the illegal taking of game and

 

fish; revenue derived from fees, licenses, and permits related to

 

game, game areas, and game fish; and other revenues as authorized

 

by law. Money in the game and fish protection account shall be

 

expended only for the following:

 

     (a) The development, improvement, operation, promotion, and

 

maintenance of wildlife and fisheries programs and facilities.

 

     (b) The acquisition of land and rights in land that support

 

wildlife and fisheries programs.

 

     (c) Research to support wildlife and fisheries programs.

 

     (d) The enforcement and administration of the wildlife and

 

fisheries laws of the state, including the necessary equipment and

 


apparatus incident to the operation and enforcement of wildlife and

 

fisheries laws.

 

     (e) The protection, propagation, distribution, and control of

 

wildlife and fish.

 

     (f) Grants to state colleges and universities to implement

 

programs funded by the game and fish protection account.

 

     (g) The administration of the game and fish protection

 

account, which may include payments in lieu of taxes on state owned

 

land that has been or will be purchased through the game and fish

 

protection fund or account.

 

     The off-road vehicle account is established as an account

 

within the legacy fund. The off-road vehicle account shall consist

 

of revenue derived from fees imposed upon the use or registration

 

of off-road vehicles and other revenues as authorized by law. Money

 

in the off-road vehicle account shall be expended only for the

 

following:

 

     (a) Signage for and the improvement, maintenance, and

 

construction of off-road vehicle trails, routes, or areas.

 

     (b) The administration and enforcement of state regulations

 

related to off-road vehicles.

 

     (c) The leasing of land for use by off-road vehicles.

 

     (d) The acquisition of easements, permits, or other agreements

 

for the use of land for off-road vehicle trails, routes, or areas.

 

     (e) The restoration of any of the natural resources of the

 

state on public land that are damaged due to off-road vehicle use.

 

     (f) Safety education programs related to the operation of off-

 

road vehicles.

 


     (g) Other uses as provided by law as long as the uses are

 

consistent with the development, improvement, operation, promotion,

 

and maintenance of the state's off-road vehicle programs.

 

     (h) Grants to state colleges and universities to implement

 

programs funded by the off-road vehicle account.

 

     (i) The administration of the off-road vehicle account.

 

     The recreation improvement account is established as an

 

account within the legacy fund. The recreation improvement account

 

shall consist of all sales and use tax revenue derived from the

 

sale of two percent of the gasoline sold in this state for

 

consumption in internal combustion engines dedicated to the

 

recreation improvement account under section 8 of this article and

 

other revenues as authorized by law. Money in the recreation

 

improvement account shall be distributed as follows:

 

     (a) Eighty percent of the money shall be annually transferred

 

to the waterways account to be used for the purposes of that

 

account.

 

     (b) Fourteen percent of the money shall be annually

 

transferred to the snowmobile account to be used for the purposes

 

of that account.

 

     (c) The remainder of the money that is not transferred under

 

this section shall be used, upon appropriation, for recreation

 

projects, including grants to state colleges and universities to

 

implement recreation projects, and for the administration of the

 

recreation improvement account. Of the amount that is credited to

 

recreational projects in a fiscal year, not less than twenty-five

 

percent of any funds designated for projects intended for off-road

 


vehicles shall be expended on projects to repair damages as a

 

result of pollution, impairment, or destruction of air, water, or

 

other natural resources, or the public trust, in air, water, or

 

other natural resources, as a result of the use of off-road

 

vehicles.

 

     The snowmobile account is established as an account within the

 

legacy fund. The snowmobile account shall consist of revenue

 

derived from fees imposed for the registration or use of

 

snowmobiles; revenue derived from the use of snowmobile trails;

 

transfers from the recreation improvement account; and other

 

revenues as authorized by law. Money in the snowmobile account

 

shall be expended only for the following:

 

     (a) Planning, construction, maintenance, and acquisition of

 

trails and areas for the use of snowmobiles.

 

     (b) Providing access to trails and areas for the use of

 

snowmobiles.

 

     (c) Providing basic snowmobile facilities.

 

     (d) The administration and enforcement of state regulations

 

related to snowmobiles.

 

     (e) Safety education programs related to the operation of

 

snowmobiles.

 

     (f) Other uses as provided by law as long as the uses are

 

consistent with the development, improvement, operation, promotion,

 

and maintenance of the state's snowmobile programs.

 

     (g) Grants to state colleges and universities to implement

 

programs funded by the snowmobile account.

 

     (h) The administration of the snowmobile account, which may

 


include payments in lieu of taxes on state owned land that has been

 

or will be purchased through the recreational snowmobile trail

 

improvement fund or snowmobile account.

 

     The state park improvement account is established as an

 

account within the legacy fund. The state park improvement account

 

shall consist of revenue derived from concessions, leases,

 

contracts, fees, and permits for activities in state parks and

 

recreation areas; damages paid to the state for illegal activities

 

in state parks and recreation areas; and other revenues as

 

authorized by law. Money in the state park improvement account

 

shall be expended only for the following:

 

     (a) The development, improvement, operation, promotion, and

 

maintenance of state parks and recreation areas.

 

     (b) Grants to state colleges and universities to implement

 

programs funded by the state park improvement account.

 

     (c) The administration of the state park improvement account.

 

     The waterways account is established as an account within the

 

legacy fund. The waterways account shall consist of revenue derived

 

from watercraft registration fees assessed on the ownership or

 

operation of watercraft in the state; revenue derived from fees

 

charged for the moorage of watercraft at state-operated mooring

 

facilities; revenue derived from fees charged for the use of state-

 

operated public access sites; transfers from the recreation

 

improvement account; all tax revenue derived from the sale of

 

diesel fuel in this state that is used to generate power for the

 

operation or propulsion of vessels on the waterways of the state;

 

and other revenues as authorized by law. Money in the waterways

 


account shall be expended only for the following:

 

     (a) The construction, operation, and maintenance of

 

recreational boating facilities that provide public access to

 

waterways or moorage of watercraft.

 

     (b) The acquisition of property for the purpose of paragraph

 

(a).

 

     (c) Grants to local units of government and state colleges and

 

universities for the provision of public access or moorage of

 

watercraft and law enforcement or boating education to recreational

 

watercraft operators.

 

     (d) The acquisition and development of harbors and public

 

access sites.

 

     (e) The enforcement of laws related to the operation of

 

watercraft and education related to the operation of watercraft.

 

Not less than forty-nine percent of revenues from watercraft

 

registration fees received by the waterways account shall be used

 

for the purposes of this subdivision.

 

     (f) The administration of programs funded by the waterways

 

account.

 

     (g) Other uses as provided by law as long as the uses are

 

consistent with the development, improvement, operation, promotion,

 

and maintenance of the state's waterways programs.

 

     (h) The administration of the waterways account, which may

 

include payments in lieu of taxes on state owned land that has been

 

or will be purchased through the Michigan state waterways fund or

 

waterways account.

 

     The legislature shall provide by law for the implementation of

 


this section.

 

     Resolved further, That the foregoing amendment shall be

 

submitted to the people of the state at the next general election

 

in the manner provided by law.