September 6, 2005, Introduced by Reps. Gosselin, Garfield, Drolet and Pastor and referred to the Committee on Tax Policy.
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending sections 3, 10, and 12 (MCL 207.623, 207.630, and
207.632), section 12 as amended by 2002 PA 237.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Accommodations" means the room or other space provided to
transient guests for dwelling, lodging, or sleeping, including
furnishings
and other accessories in a facility which that
is not
a campground, hospital, nursing home, emergency shelter, or
community mental health or community substance abuse treatment
facility. Accommodations do not include food or beverages.
(b) "Commissioner" means the state commissioner of revenue.
(c) "Convention facility" means 1 or more facilities owned or
leased by a local governmental unit that are any combination of a
convention hall, auditorium, meeting rooms, and exhibition areas
that are separate and distinct and contiguous to each other, and
related adjacent public areas generally available to members of the
public for lease on a short-term basis for holding conventions,
meetings, exhibits, and similar events and the necessary site or
sites
therefor for them, together with appurtenant properties
necessary and convenient for use in connection with the facility.
(d) "Convention hotel" means a facility used in the business
of
providing accommodations which that has more than 80 rooms
for
providing
accommodations to transient guests and which complies
with all of the following:
(i) Located within a county having a population according to
the
most recent decennial census of 600,000 700,000 or more.
(ii) Located within a county that is 1 or more of the
following:
(A)
A county which that has a convention facility with
350,000 square feet or more of total exhibit space.
(B) A county that has 2,000 or more rooms to provide
accommodations for transient guests.
(e) "Person" means a natural person, partnership, fiduciary,
association, corporation, or other entity.
(f) "Qualified county" means a county in which a convention
hotel is located.
(g) (f)
"Room charge" means the
charge imposed for the use
or occupancy of accommodations, excluding charges for food,
beverages,
telephone services, the use tax imposed pursuant to Act
No.
94 of the Public Acts of 1937, being sections 205.91 to 205.111
of
the Michigan Compiled Laws under the use tax act, 1937 PA 94,
MCL 205.91 to 205.111, or like services paid in connection with the
charge. Room charge does not include reimbursement of the
assessment imposed by the community convention or tourism marketing
act,
Act No. 395 of the Public Acts of 1980, being sections
141.871
to 141.880 of the Michigan Compiled Laws 1980 PA 395, MCL
141.871
to 141.880, the convention and tourism
marketing act, Act
No.
383 of the Public Acts of 1980, being sections 141.881 to
141.889
of the Michigan Compiled Laws 1980 PA 383, MCL 141.881 to
141.889, or this act.
(h) (g)
"Transient guest" means
a natural person staying
less than 30 consecutive days.
Sec. 10. (1) Any money remaining in the convention facility
development fund at the end of the state fiscal year shall be
transferred to the general fund of the state treasury to be
distributed in the next state fiscal year pursuant to subsection
(2).
(2) Money transferred from the convention facility development
fund to the general fund pursuant to subsection (1) shall be
distributed in the following order of priority in the following
amounts:
(a) An amount equal to the difference, if any, between the tax
imposed
pursuant to under this act in the preceding state fiscal
year
that is designated pursuant to under section 9 to a
qualified
local governmental unit and the tax imposed pursuant to
under this act that is designated pursuant to under
section 9 in
the
state fiscal year prior to immediately
preceding the
preceding state fiscal year for the same local governmental unit
shall be distributed to that local governmental unit. This
subdivision
shall does not apply unless a tax has been imposed
under this act in the entire 2 state fiscal years immediately
preceding the state fiscal year in which a distribution under this
subdivision
is made. Any amount distributed pursuant to under
this subdivision shall be used by the local governmental unit only
for the retirement of outstanding bonds, obligations, or other
evidences
of indebtedness incurred for which distributions
pursuant
to under section 9 are pledged.
A distribution under this
subdivision shall not be made to the extent that the obligations,
bonds, or other evidences of indebtedness cannot be retired or are
not outstanding.
(b)
Of the money transferred pursuant to under subsection
(1) and remaining after distributions under subdivision (a), an
amount
equal to that portion of the liquor tax collected pursuant
to
the convention facility promotion tax act under section 1207 of
the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
from licensees in counties in which convention hotels are not
located shall be distributed to those counties in which convention
hotels are not located in the same proportion that the amount of
tax
collected pursuant to the convention facility promotion tax
act
under section 1207 of the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.2207, in the preceding state fiscal year
from
the licensees in a county bears to the total tax collections
pursuant
to the convention facility promotion tax act under
section 1207 of the Michigan liquor control code of 1998, 1998 PA
58, MCL 436.2207, in the preceding state fiscal year from all
counties in which convention hotels are not located.
(c)
The remaining money transferred pursuant to under
subsection (1) after distributions under subdivisions (a) and (b)
shall be distributed to each county in the following amounts:
(i) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding
state fiscal year under the convention facility
promotion
tax act section 1207 of the Michigan liquor control
code
of 1998, 1998 PA 58, MCL 436.2207, from licensees in counties in
which convention hotels are not located shall be distributed to
each county in which convention hotels are not located in the same
proportion
that the amount of tax collected pursuant to the
convention
facility promotion tax act section 1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, in the
preceding state fiscal year from licensees in that county bears to
the
total tax collections from the convention facility promotion
tax
act section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year from
all counties in which convention hotels are not located not to
exceed the amount distributed under this subparagraph in 1999.
(ii) The amount of money available to be distributed under this
subdivision multiplied by the percentage of collections in the
preceding
state fiscal year under the convention facility
promotion
tax act section 1207 of the Michigan liquor control
code
of 1998, 1998 PA 58, MCL 436.2207, from licensees in counties in
which convention hotels are located shall be distributed to each
county in which convention hotels are located in the same
proportion
that the amount of tax collected pursuant to the
convention
facility promotion tax act section 1207 of the Michigan
liquor control code of 1998, 1998 PA 58, MCL 436.2207, in the
preceding state fiscal year from licensees in that county bears to
the
total tax collections from the convention facility promotion
tax
act section 1207 of the Michigan liquor control code of 1998,
1998 PA 58, MCL 436.2207, in the preceding state fiscal year from
all counties in which convention hotels are located not to exceed
the amount distributed under this subparagraph in 1999. However, in
the calculation of the proportion represented by a county's share
of distributions under this subparagraph, the amount of the tax
collected from licensees in the qualified local governmental unit
that received distributions under section 9 in the last state
fiscal year shall not be included.
(d) The remaining money transferred under subsection (1) after
distributions under subdivisions (a), (b), and (c) shall be
distributed to each city in a qualified county on a pro rata basis
based on the amount collected and deposited into the convention
facility development fund from that qualified county.
(3) A distribution to a county pursuant to this section shall
be included for purposes of the calculations required to be made by
section
24e of the general property tax act, Act No. 206 of the
Public
Acts of 1893, being section 211.24e of the Michigan Compiled
Laws
1893 PA 206, MCL 211.24e. If
the governing body of a taxing
unit approves the additional millage rate under section 24e of the
general
property tax act, Act No. 206 of the Public Acts of 1893
1893 PA 206, MCL 211.24e, which is due to distributions pursuant to
this section, then an amount equal to 50% of the distribution under
this section shall be used for substance abuse treatment within the
taxing unit.
Sec. 12. (1) Subject to approval pursuant to section 11, a
local governmental unit may assign or pledge all or a portion of
the distribution of taxes that the local governmental unit is
eligible to receive under this act for payment of bonds,
obligations, or other evidences of indebtedness for the purposes
specified in section 8(2). If a local governmental unit assigns,
pledges, or, pursuant to section 11(3), dedicates all or a portion
of the distribution of taxes that the local governmental unit is
eligible to receive under this act for payment of bonds,
obligations, or other evidences of indebtedness incurred for the
purposes specified in this act, the state treasurer may transmit to
the duly appointed trustee or trustees for the bonds, obligations,
or other evidences of indebtedness, if any, the payment of the
distribution assigned, pledged, or dedicated by the local
governmental unit.
(2) A local governmental unit shall not issue bonds,
obligations, or other evidences of indebtedness to which
distributions under section 9 are pledged in a principal amount
greater than $180,000,000.00. This limit does not apply to
refunding bonds, obligations, or other evidences of indebtedness
issued pursuant to section 11(2) or to bonds, obligations, or other
evidences of indebtedness to which distributions of taxes from the
convention facility development fund are dedicated under section
11(3).
(3) A local governmental unit that has pledged revenue for the
payment of bonds, obligations, or other evidences of indebtedness
under this act shall not refund a bond, obligation, or other
evidence of indebtedness under this act unless the net present
value of the principal and interest to be paid on the refunding
bond, obligation, or other evidence of indebtedness, excluding the
cost of issuance, will be less than the net present value of the
principal and interest to be paid on the bond, obligation, or other
evidence of indebtedness being refunded, as calculated using a
method approved by the department of treasury.