HB-4025, As Passed House, June 14, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4025

A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 25 (MCL 205.75), as amended by 2010 PA 160.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 25. (1) All money received and collected under this act

shall be deposited by the department in the state treasury to the

credit of the general fund, except as otherwise provided in this

section.

(2) Fifteen percent of the collections of the tax imposed at a

rate of 4% shall be distributed to cities, villages, and townships

pursuant to the Glenn Steil state revenue sharing act of 1971, 1971

PA 140, MCL 141.901 to 141.921.

(3) Sixty percent of the collections of the tax imposed at a

rate of 4% shall be deposited in the state school aid fund

established in section 11 of article IX of the state constitution

of 1963 and distributed as provided by law. In addition, all of the

collections of the tax imposed at the additional rate of 2%

approved by the electors March 15, 1994 shall be deposited in the

state school aid fund.

(4) ~~For the fiscal year ending September 30, 1988 and each~~

~~fiscal year ending after September 30, 1988,~~ Not less than 27.9% of

~~the~~ 25% of the collections of the general sales tax imposed at a

rate of 4% directly or indirectly on fuels sold to propel motor

vehicles upon highways, on the sale of motor vehicles, and on the

sale of the parts and accessories of motor vehicles by new and used

car businesses, used car businesses, accessory dealer businesses,

and gasoline station businesses as classified by the department of

treasury ~~remaining after the allocations and distributions are made~~

~~pursuant to subsections (2) and (3), the following amounts~~ shall be

deposited each year into the ~~respective funds:~~

~~(a) For the fiscal year ending September 30, 2003 and for the~~

~~fiscal year ending September 30, 2006 and each fiscal year ending~~

~~after September 30, 2006, not less than 27.9% to the~~ comprehensive

transportation fund created in section 10b of 1951 PA 51, MCL

247.660b. ~~For the fiscal year ending September 30, 2004 through the~~

~~fiscal year ending September 30, 2005, not less than 24% to the~~

~~comprehensive transportation fund. For the fiscal year ending~~

~~September 30, 2006 only, the amount deposited to the comprehensive~~

~~transportation fund under this subdivision shall be reduced by~~

~~$11,100,000.00. For the fiscal year ending September 30, 2007 only,~~

~~the amount deposited to the comprehensive transportation fund under~~

~~this subdivision shall be reduced by $10,270,000.00. For the fiscal~~

~~year ending September 30, 2008 only, the amount deposited to the~~

~~comprehensive transportation fund under this subdivision shall be~~

~~reduced by $5,000,000.00 and shall be deposited in the state~~

~~treasury to the credit of the general fund. For the fiscal year~~

~~ending September 30, 2010 only, the amount deposited to the~~

~~comprehensive transportation fund under this subdivision shall be~~

~~reduced by $5,700,000.00 and shall be deposited in the state~~

~~treasury to the credit of the general fund.~~

~~(b) The balance to the state general fund.~~

(5) For the fiscal year ending September 30, 2013 only, an

amount equal to 18% of the collections of the tax imposed at a rate

of 4% under this act from the sale of motor fuel, as that term is

defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL

207.1004, shall be distributed as follows:

(a) An amount sufficient to match available federal highway

funds shall be deposited into the state trunk line fund created in

section 11 of 1951 PA 51, MCL 247.661, for the purpose of matching

federal aid highway funds as those federal funds are made available

to this state, but not less than 39.1% subject to subdivision (c).

(b) After the distribution under subdivision (a), any

remaining balance, subject to subdivision (c), shall be distributed

as follows:

(i) 66% to the county road commissions of this state, which

distribution shall be administered under section 12 of 1951 PA 51,

MCL 247.662.

(ii) 34% to the cities and villages of this state, which

distribution shall be administered under section 13 of 1951 PA 51,

MCL 247.663.

$100,000,000.00.

(6) For the fiscal year ending September 30, 2013 only and

except as otherwise limited in this subsection after the

allocations and distributions are made pursuant to subsections (2)

and (3), an amount equal to the collections of the tax imposed at a

rate of 4% under this act from the sale at retail of aviation fuel

and aviation products shall be deposited in the state aeronautics

fund and shall be expended, on appropriation, only for those

purposes authorized in the aeronautics code of the state of

Michigan, 1945 PA 327, MCL 259.1 to 259.208. Not more than

$10,000,000.00 shall be deposited in the state aeronautics fund

under this subsection. As used in this subsection, "state

aeronautics fund" means the state aeronautics fund created in

section 34 of the aeronautics code of the state of Michigan, 1945

PA 327, MCL 259.34.

(7) ~~(5) After the allocations and distributions are made~~

~~pursuant to subsections (2) and (3), an~~ An amount equal to the

collections of the tax imposed at a rate of 4% under this act from

the sale at retail of computer software as defined in section 1a

shall be deposited in the Michigan health initiative fund created

in section 5911 of the public health code, 1978 PA 368, MCL

333.5911, and shall be considered in addition to, and is not

intended as a replacement for any other money appropriated to the

department of community health. The funds deposited in the Michigan