May 17, 2011, Introduced by Reps. Tlaib, Olumba and Santana and referred to the Committee on Tax Policy.
A bill to amend 1996 IL 1, entitled
"Michigan gaming control and revenue act,"
by amending section 12 (MCL 432.212), as amended by 2004 PA 306.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) A wagering tax is imposed on the adjusted gross
receipts received by the licensee from gaming authorized under this
act
at the rate of 18% 23%. If a city exercises either of the
options in subsection (4), the tax rate under this subsection shall
be
8.1% 10.1% and deposited in the state school aid fund to
provide
additional
funds money for K-12 classroom education. If the city
rescinds or is otherwise unable to exercise 1 of the options in
subsection
(4), the tax rate under this subsection shall be 18%
23%. A tax rate of 18% 23% imposed
under this subsection shall
cover any period for which the city does not or is unable to
exercise 1 of the options in subsection (4).
(2) The state casino gaming fund is created in the department
of treasury. The fund shall be administered by the department in
accordance with this act. Except as provided in sections 12a and
13, the taxes imposed under this section plus all other fees,
fines,
and charges imposed by the this
state shall be deposited
into
the state casino gaming fund. The wagering tax is to shall be
remitted daily by the holder of a casino license to the department
of
treasury by electronic wire transfer of funds. The state
department of treasury shall remit the city's portion of the
wagering tax to the city daily by electronic wire transfer of funds
as provided by this act.
(3) If the state imposes a wagering tax under subsection (1)
equal
to 18% 23% of adjusted gross receipts, money in the state
casino gaming fund that is not from a tax imposed under subsections
(5) to (8) shall be allocated as follows:
(a) 55% to the city in which a casino is located for use in
connection with the following:
(i) The hiring, training, and deployment of street patrol
officers.
(ii) Neighborhood and downtown economic development programs
designed to create local jobs.
(iii) Public safety programs such as emergency medical services,
fire department programs, and street lighting.
(iv) Anti-gang and youth development programs.
(v) Other programs that are designed to contribute to the
improvement of the quality of life in the city.
(vi) Relief to the taxpayers of the city from 1 or more taxes
or fees imposed by the city.
(vii) The costs of capital improvements.
(viii) Road repairs and improvements.
(b) 45% to the state to be deposited in the state school aid
fund
to provide additional funds money
for K-12 classroom
education.
(4) A city in which a licensee is located may do 1 of the
following:
(a) In the development agreement into which the city is
entitled to enter, include a provision that requires the licensee
located
in the city to pay the city a payment equal to 9.9% 12.9%
of the adjusted gross receipts received by the licensee from gaming
authorized under this act.
(b) By ordinance, levy, assess, and collect an excise tax upon
licensees
located in the city at a rate of 9.9% 12.9% of the
adjusted gross receipts received by the licensee from gaming
authorized under this act.
(5) Subject to subsections (6) to (8), a wagering tax in
addition to the tax imposed in subsection (1) is imposed on the
adjusted gross receipts received by a licensee from gaming
authorized under this act at the rate of 6%. Money from the tax
imposed under this subsection that has been deposited in the state
casino gaming fund shall be allocated 1/3 to the city in which the
licensee's
casino is located for use in connection with to be
expended for the purposes listed in subsection (3)(a), 7/12 to the
general fund, and 1/12 to the Michigan agriculture equine industry
development fund. The city may collect its share of the tax under
this subsection directly using 1 of the methods in subsection (4).
For a period during which the licensee is paying the city's share
of the tax under this subsection directly to the city under either
of the methods in subsection (4), the payment to the state casino
gaming fund under this subsection shall be 4% and shall be
allocated 7/8 to the general fund and 1/8 to the Michigan
agriculture equine industry development fund.
(6) Subject to subsections (7) and (8), and unless an act of
God, a war, a disaster, or an act of terrorism directly and
substantially impacts the ability of the licensee to complete
construction of its casino and casino enterprise, if a casino
licensee is not fully operational by each of the following dates,
the tax on the licensee under subsection (5) shall be as follows:
(a) July 1, 2009, 7%, allocated 1/2 to the general fund, 1/14
to the Michigan agriculture equine industry development fund, and
3/7 to the city in which the licensee's casino is located.
(b) July 1, 2010, 8%, allocated 7/16 to the general fund, 1/16
to the Michigan agriculture equine industry development fund, and
1/2 to the city in which the licensee's casino is located.
(c) July 1, 2011, 9%, allocated 7/18 to the general fund, 1/18
to the Michigan agriculture equine industry development fund, and
5/9 to the city in which the licensee's casino is located.
(7) Subject to subsection (8), and irrespective of whether
there has been an increase under subsection (6), after a casino
licensee has been fully operational for 30 consecutive days, the
licensee may apply to the board for certification under this
subsection. If the board determines that a licensee that makes an
application under this subsection has been fully operational and in
compliance with its development agreement that is in existence on
July 1, 2004 or a subsequent original development agreement, for at
least 30 consecutive days, the board shall certify the licensee
under this subsection, and the tax imposed on the licensee under
subsection (5), as adjusted, if applicable, by subsection (6),
shall be, retroactive to the first day of the 30 consecutive day
period that the licensee was fully operational, reduced to 1% and
shall be allocated entirely to the city where the licensee operates
its casino.
(8) If the McCauley-Traxler-Law-Bowman-McNeely lottery act,
1972 PA 239, MCL 432.1 to 432.47, is amended to allow the operation
of video lottery at horse racetracks in this state, and if video
lottery is being conducted at horse racetracks in this state, the
licensee is no longer obligated to pay the wagering tax under
subsections (5) to (7).
(9) Notwithstanding section 9b, if the McCauley-Traxler-Law-
Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47, is
amended to allow the operation of video lottery at horse racetracks
in this state, and if video lottery is being conducted at horse
racetracks in this state, a casino licensee may, after obtaining
approval
from the board, apply to the racing commissioner executive
director of the board for authorization to simulcast horse races
under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to
431.336. A casino licensee that is authorized under this subsection
shall display and allow wagering on simulcast horse races only at
the licensee's casino and shall comply with all applicable
provisions of the horse racing law of 1995, 1995 PA 279, MCL
431.301 to 431.336, rules promulgated under that act, and the
written permit to conduct simulcasting and any related order issued
to
the licensee by the racing commissioner executive director of
the board. Simulcasting and wagering under this subsection are
under
the primary control of the racing commissioner executive
director
of the board, and the racing
commissioner executive
director may revoke or suspend the authorization of or take other
disciplinary action against the licensee for failing to comply with
a law, rule, permit, or order as required by this subsection.
However, the simulcasting and wagering under this subsection is
part of the licensee's casino operation under this act and subject
to the same control by the board as are other parts of the
licensee's casino operation. The board may take disciplinary action
under section 4a against a casino licensee for failure to comply
with a law, rule, permit, or order as required by this subsection.
(10) A casino licensee is entitled to the same commission from
money wagered on horse races simulcast by the licensee as a race
meeting licensee is entitled to receive from wagering on simulcast
horse races under the horse racing law of 1995, 1995 PA 279, MCL
431.301 to 431.336. The same taxes, fees, and other deductions
shall be subtracted and paid from the licensee's commission as are
subtracted and paid from a race meeting licensee's commission under
the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.
(11) Payments to a city under 1 of the methods in subsection
(4) shall be made in a manner, at those times, and subject to
reporting requirements and penalties and interest for delinquent
payment as may be provided for in the development agreement if the
payment is required under a development agreement, or by ordinance
if the payment is required for a tax levied by the city. Payments
required
under the method described in subsection
(4)(a) may be in
addition
to paid with any other payments which may be required in
under
the development agreement for the
conveyance of any an
interest in property, the purchase of services, or the
reimbursement
of expenses. Payments to a city under the method
described
in subsection (4) shall be used by
the city for the
purposes listed in subsection (3)(a).
(12) Approval by the city of a development agreement or
adoption of an ordinance approving either casino gaming or the levy
of a local excise tax does not constitute the granting of a
franchise or license by the city for purposes of any statutory,
charter, or constitutional provision.
(13) The taxes imposed under this section and any tax imposed
under section 13(2) shall be administered by the department of
treasury in accordance with 1941 PA 122, MCL 205.1 to 205.31, and
this
act. In case of conflict between the provisions of 1941 PA
122,
MCL 205.1 to 205.31, and this act, the provisions of this act
prevail.prevails.
(14)
Funds Money from this act shall not be used to supplant
existing state appropriations or local expenditures.
(15) As used in this section:
(a) "Fully operational" means that a certificate of occupancy
has been issued to the casino licensee for the operation of a hotel
with not fewer than 400 guest rooms and, after issuance of the
certificate of occupancy, the casino licensee's casino, casino
enterprise, and 400-guest-room hotel have been opened and made
available for public use at their permanent location and maintained
in that status.
(b) "Michigan agriculture equine industry development fund"
means the Michigan agriculture equine industry development fund
created in section 20 of the horse racing law of 1995, 1995 PA 279,
MCL 431.320.