HB-4624, As Passed Senate, June 7, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4624

     A bill to amend 1990 PA 100, entitled

"City utility users tax act,"

by amending the title and section 2 (MCL 141.1152), the title as

amended by 1998 PA 548 and section 2 as amended by 2005 PA 197.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to permit the imposition, revival, and continued

collection by certain cities of a population of 750,000 or more of

a utility users tax; to provide the procedure for, and to require

the adoption of a prescribed uniform city utility users tax

ordinance by cities desiring to impose and collect such a tax; to

limit the rate of such tax; to prescribe the powers and duties of

the state commissioner of revenue; department of treasury; and to

provide for appeals.

     Sec. 2. (1) The governing body of a city having a population

of 750,000 600,000 or more, by a lawfully adopted ordinance that

incorporates by reference the uniform city utility users tax

ordinance set forth in chapter 2, may levy, assess, and collect

from those users in that city a utility users tax as provided in

the ordinance. However, a uniform city utility users tax ordinance

containing substantially the same provisions provided for in

chapter 2 adopted by the governing body of a city before June 13,

1990 that has not been rescinded by that governing body is

considered an ordinance adopted under this act and a tax imposed

and collected under that ordinance is revived. The governing body

shall set the rate of tax in increments of 1/4 of 1% that shall not

exceed 5%.

     (2) A uniform city utility users tax ordinance may be lawfully

adopted or rescinded by the governing body at any time and its

adoption shall become effective on the first day of any month,

following adoption of the ordinance, as specified in the ordinance.

The ordinance may be rescinded at any time by the governing body in

the same manner in which the ordinance was adopted and with

appropriate enforcement, collection, and refund provisions with

respect to liabilities incurred before the effective date of its

rescission. The ordinance shall not be amended except as provided

by the legislature. A village and a city under 750,000 600,000

population shall not impose and collect a utility users tax. A city

that adopts or rescinds the tax shall notify within 7 days by

certified mail all public utilities or resale customers affected by

the action of the governing body. Except as otherwise provided in

this section, a city now having or that may attain a population of

750,000 600,000 or more shall not impose a utility users tax except

by adopting the entire uniform city utility users tax ordinance as

set forth in chapter 2.

     (3) The administrator, as that term is defined in chapter 2,

of the tax shall file a report indicating the total amount of

revenue collected in the prior fiscal year with the state revenue

commissioner by August 1 of each year, beginning on August 1, 1985.

The administrator shall make the report available to the public at

the same time.

     (4) The revenue generated from this tax shall be placed

directly in the budget of the police department of a city described

in this act and shall be used exclusively to retain or hire police

officers.

     (5) As used in this section, "police officer" means a police

officer, investigator, or police sergeant.

     Enacting section 1. This amendatory act is retroactive and

takes effect January 1, 2011.