HOUSE BILL No. 5264

 

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.