May 10, 2011, Introduced by Reps. Santana, Jackson, Durhal, Womack, Nathan, Talabi, Howze, Stallworth, Bledsoe and Yonker and referred to the Committee on Tax Policy.
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
750,000 500,000 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1990 that has not been rescinded by that governing body is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adopted or rescinded by the governing body at any time and its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The ordinance may be rescinded at any time by the governing body in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 750,000 500,000
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
500,000 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.