October 6, 2005, Introduced by Reps. Lemmons, III and Lemmons, Jr. and referred to the Committee on Tax Policy.
A bill to provide for the levy, collection, and administration
of an excise tax on the privilege of selling certain food and
beverages in this state; to provide for the disposition of the
proceeds of the tax; and to prescribe the powers and duties of
certain state departments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "fast-
food restaurant and food service tax act".
Sec. 2. As used in this act:
(a) "Fast-food restaurant" means a restaurant with a North
American industrial classification system (NAICS) of 722211, at
which patrons pay for the food and beverages selected or ordered
before eating or drinking, whether the food or beverages are
consumed on the premises, taken out, or delivered to another
location.
(b) "Fund" means the childhood obesity prevention program fund
created in section 5.
(c) "Prepared food and beverages" means all prepared food and
beverages subject to the collection of tax under the general sales
tax act, 1933 PA 167, MCL 205.51 to 205.78.
Sec. 3. (1) An excise tax is levied on the gross monthly sales
of prepared food and beverages sold at fast-food restaurants in
this state.
(2) The rate of the excise tax is 2% of the gross monthly
sales of prepared food and beverages sold at fast-food restaurants.
(3) The excise tax shall be collected each month at the same
time and in the same manner as the tax imposed under the general
sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(4) The excise tax imposed under this act shall be
administered by the state treasurer under 1941 PA 122, MCL 205.1 to
205.31.
(5) The state treasurer shall prescribe the forms necessary
for the administration of this act and may promulgate necessary
rules under the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
Sec. 4. A taxpayer may reimburse himself or herself by adding
the amount of the excise tax to the cost of prepared food and
beverages sold at a fast-food restaurant.
Sec. 5. (1) The childhood obesity prevention program fund is
created within the state treasury.
(2) The proceeds from the collection of the excise tax imposed
under this act shall be deposited with the state treasurer and
credited to the fund.
(3) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) The treasurer shall remit, upon appropriation, the
proceeds in the fund, which shall be expended only for childhood
obesity prevention programs.