SENATE BILL No. 784

October 24, 2001, Introduced by Senators NORTH and GOUGEON and referred to the

Committee on Finance.

A bill to amend 1937 PA 94, entitled

"Use tax act,"

by amending section 21 (MCL 205.111), as amended by 1994 PA 34.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 21. (1) Except as provided in subsection (2) THIS

2 SECTION, all money received and collected under the provisions of

3 this act shall be deposited by the department of treasury , in

4 the state treasury to the credit of the general fund, to be dis-

5 bursed only by appropriations by the legislature.

6 (2) The collections from the use tax imposed at the addi-

7 tional rate of 2% approved by the electors March 15, 1994 shall

8 be deposited in the state school aid fund established in

9 section 11 of article IX of the state constitution of 1963.

10 (3) IN EACH FISCAL YEAR FOLLOWING THE 1999-2000 FISCAL YEAR,

11 25% OF THE COLLECTIONS OF THE TAX IMPOSED AT A RATE OF 4% UNDER

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1 THIS ACT DIRECTLY OR INDIRECTLY ON FUELS SOLD TO PROPEL AIRCRAFT,

2 THE SALE OF AIRCRAFT, AIRCRAFT RENTALS, THE SALE OF AIRCRAFT

3 PARTS AND ACCESSORIES, AND ALL SALES AT AIRPORT CONCESSIONS,

4 INCLUDING MOTOR VEHICLE RENTALS LOCATED AT AIRPORTS, SHALL BE

5 DEPOSITED EACH YEAR INTO THE STATE AERONAUTICS FUND CREATED IN

6 SECTION 34 OF THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945

7 PA 327, MCL 259.34, AND SHALL BE USED FOR AIRPORT CAPITAL

8 IMPROVEMENTS PROJECTS. HOWEVER, NO FUNDS COLLECTED FOR CAPITAL

9 IMPROVEMENTS PROJECTS SHALL BE EXPENDED FOR CHANGES IN THE NATURE

10 OF RUNWAY EXTENSIONS AT AN AIRPORT LOCATED WITHIN 15 MILES OF AN

11 AIRPORT THAT SERVICES 4,000,000 OR MORE EMPLANEMENTS ANNUALLY.

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