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.