INFRASTRUCTURE GRANTS
House Bill 5071
Sponsor: Rep. Lynne Martinez
Committee: Appropriations
Complete to 2-22-00
A SUMMARY OF HOUSE BILL 5071 AS INTRODUCED 11-2-99
House Bill 5071 would amend the Michigan Gaming Control and Revenue Act to require that the gaming revenues now deposited in the state school aid fund which are earmarked to provide additional funds for K-12 classroom education be used instead for K-12 infrastructure.
Under current law, a wagering tax of 18 percent is imposed on the adjusted gross receipts received by a gaming licensee. However, if a city imposes either a) a payment of 9.9 percent on gross receipts in its development agreement, or b) a 9.9 percent excise tax by ordinance, then the tax rate is 8.1 percent and that is deposited in the state school aid fund to provide additional funds for K-12 classroom education. Under the bill, these revenues would be deposited to a separate account in the state school aid fund and be used to provide additional funds for K-12 infrastructure.
MCL 432.212
Analyst: J. Hunault