S03138'15 (S-1) TDR 

SB-0418, As Passed Senate, December 3, 2015 

SUBSTITUTE FOR 

SENATE BILL NO. 418 

 A bill to amend 1945 PA 327, entitled 

"Aeronautics code of the state of Michigan," 

by amending section 203 (MCL 259.203), as amended by 2008 PA 25. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 Sec. 203. (1) There is hereby imposed a A privilege tax AT THE 

2 RATE of 3 cents per gallon IS IMPOSED on all fuel sold or used in 

3 producing or generating power for propelling aircraft using the 

4 aeronautical facilities on the lands and waters of this state. The 

5 tax shall MUST be collected and remitted in the same manner and 

6 method and at the same time as prescribed by law for the collection 

7 of the gasoline tax imposed on all gasoline used in producing or 

8 generating power for propelling motor vehicles used upon ON the 

9 public highways of this state under the motor fuel tax act, 2000 PA 

10 403, MCL 207.1001 to 207.1170. A FOR THE TAX IMPOSED UNDER THIS 

ATTACHMENT 9
2 

S03138'15 (S-1) Final Page TDR 

1 SUBSECTION, A refund of 1-1/2 cents per gallon shall MUST be made 

2 to airline operators who show proof within 6 months after purchase 

3 that they are operating interstate on scheduled operations. 

4 (2) If a person required to register with the department of 

5 treasury under section 94 of the motor fuel tax act, 2000 PA 403, 

6 MCL 207.1094, is not registered, the person shall not purchase fuel 

7 under this act at the rate imposed by subsection (1), but shall pay 

8 the applicable rate imposed on motor fuel by section 8 of the motor 

9 fuel tax act, 2000 PA 403, MCL 207.1008. 

10 (3) The tax imposed under subsection (1) is not imposed on 

11 aviation fuel if the purchaser has certified in writing to the 

12 seller that the aviation fuel is being purchased solely for the 

13 purpose of formulating leaded racing fuel as that term is defined 

14 in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004. 

15 Aviation fuel qualifying under this subsection shall MUST be 

16 identified on shipping papers and invoices as "aviation fuel exempt 

17 for LRF". 

18 Enacting section 1. This amendatory act takes effect 90 days 

19 after the date it is enacted into law. 

20 Enacting section 2. This amendatory act does not take effect 

21 unless all of the following bills of the 98th Legislature are 

22 enacted into law: 

23 (a) Senate Bill No. 425. 

24 (b) Senate Bill No. 426. 

25 (c) Senate Bill No. 612. 

26 (d) Senate Bill No. 613. 

27 (e) Senate Bill No. 614. 
S03430'15 (S-1) TDR 

SB-0425, As Passed Senate, December 3, 2015 

SUBSTITUTE FOR 

SENATE BILL NO. 425 

 A bill to amend 1945 PA 327, entitled 

"Aeronautics code of the state of Michigan," 

by amending section 35 (MCL 259.35), as amended by 2002 PA 352. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 Sec. 35. (1) There is appropriated all ALL money in and 

2 currently credited to the state aeronautics fund created under 

3 section 34, 34(1) IS APPROPRIATED for carrying out the purposes and 

4 provisions of this act, OTHER THAN SUBSECTION (2), and to meet the 

5 expenses of the department. Upon appropriation, the state treasurer 

6 may draw a warrant upon ON the state treasury to make payments in 

7 the amounts and to the persons as directed by the department 

8 subject to approval and release by the state administrative board 

9 of the authorized amounts. However, funds MONEY appropriated under 

10 this section SUBSECTION or subsequently LATER made available shall 
2 

S03430'15 (S-1) TDR 

1 MUST not be expended upon any ON AN aviation project that is not 

2 carried out under the supervision and direction of the department. 

3 (2) ALL MONEY IN AND CREDITED TO THE QUALIFIED AIRPORT FUND 

4 CREATED UNDER SECTION 34(2) IS APPROPRIATED FOR CARRYING OUT THE 

5 PURPOSES DESCRIBED IN THIS SUBSECTION. ON A QUARTERLY BASIS, THE 

6 STATE TREASURER SHALL DISBURSE FROM THE QUALIFIED AIRPORT FUND TO 

7 THE OPERATOR OF A QUALIFIED AIRPORT AN AMOUNT EQUAL TO THE AMOUNT 

8 DEPOSITED INTO THE QUALIFIED AIRPORT FUND. IF THERE IS MORE THAN 1 

9 QUALIFIED AIRPORT THE STATE TREASURER SHALL DISBURSE THE AMOUNT 

10 DEPOSITED INTO THE QUALIFIED AIRPORT FUND TO EACH OPERATOR OF A 

11 QUALIFIED AIRPORT IN THE SAME PROPORTION THAT THE AMOUNT OF TAXABLE 

12 GALLONS OF FUEL SOLD AT THE QUALIFIED AIRPORT DURING THE PRECEDING 

13 FISCAL YEAR BEARS TO THE TOTAL AMOUNT OF TAXABLE GALLONS OF FUEL 

14 SOLD AT ALL QUALIFIED AIRPORTS DURING THE PRECEDING FISCAL YEAR. AN 

15 OPERATOR OF A QUALIFIED AIRPORT SHALL USE MONEY DISBURSED TO THE 

16 OPERATOR UNDER THIS SUBSECTION IN THE FOLLOWING ORDER OF PRIORITY:

17 (A) FOR DEPOSIT IN A BOND AND INTEREST REDEMPTION ACCOUNT 

18 CREATED BY ORDINANCE OF THE QUALIFIED AIRPORT SOLELY TO PAY THE 

19 NEXT SCHEDULED PAYMENTS FOR REVENUE BONDS ISSUED BY THE OPERATOR OF 

20 THE QUALIFIED AIRPORT PURSUANT TO AN ORDINANCE UNDER THE REVENUE 

21 BOND ACT OF 1933, 1933 PA 94, MCL 141.101 TO 141.140, TO FINANCE 

22 CAPITAL IMPROVEMENTS TO LANDING AREAS AT THE QUALIFIED AIRPORT. THE 

23 CAPITAL IMPROVEMENTS TO LANDING AREAS MAY INCLUDE, BUT ARE NOT 

24 LIMITED TO, RUNWAY AND TAXIWAY DESIGN, CONSTRUCTION, REPAIR OR 

25 REHABILITATION, LIGHTING, DRAINAGE SYSTEMS, LAND ACQUISITION, 

26 AIRFIELD ROADWAYS, NOISE MITIGATION SYSTEMS, DEICING PADS, AND 

27 SURVEILLANCE SYSTEMS AT THE QUALIFIED AIRPORT.
3 

S03430'15 (S-1) Final Page TDR 

1 (B) TO DEFRAY THE COSTS OF CAPITAL IMPROVEMENTS TO LANDING 

2 AREAS OF THE QUALIFIED AIRPORT. THE CAPITAL IMPROVEMENTS TO LANDING 

3 AREAS MAY INCLUDE, BUT ARE NOT LIMITED TO, RUNWAY AND TAXIWAY 

4 DESIGN, CONSTRUCTION, REPAIR OR REHABILITATION, LIGHTING, DRAINAGE 

5 SYSTEMS, LAND ACQUISITION, AIRFIELD ROADWAYS, NOISE MITIGATION 

6 SYSTEMS, DEICING PADS, AND SURVEILLANCE SYSTEMS AT THE QUALIFIED 

7 AIRPORT.

8 (3) AS USED IN THIS SECTION, "ORDINANCE" MEANS THAT TERM AS 

9 DEFINED IN SECTION 3 OF THE REVENUE BOND ACT OF 1933, 1933 PA 94, 

10 MCL 141.103.

11 Enacting section 1. This amendatory act takes effect 90 days 

12 after the date it is enacted into law. 

13 Enacting section 2. This amendatory act does not take effect 

14 unless all of the following bills of the 98th Legislature are 

15 enacted into law: 

16 (a) Senate Bill No. 418. 

17 (b) Senate Bill No. 426. 

18 (c) Senate Bill No. 612. 

19 (d) Senate Bill No. 613. 

20 (e) Senate Bill No. 614. 
S03429'15 (S-1) TDR 

SB-0426, As Passed Senate, December 3, 2015 

SUBSTITUTE FOR 

SENATE BILL NO. 426 

 A bill to amend 1945 PA 327, entitled 

"Aeronautics code of the state of Michigan," 

by amending section 34 (MCL 259.34), as amended by 1996 PA 370. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 Sec. 34. (1) There is hereby created a fund to be known as the 

2 "state THE STATE aeronautics fund." FUND IS CREATED. All money 

3 received from aviation fuel taxes IMPOSED UNDER SECTION 203(1), THE 

4 PORTION OF SALES AND USE TAXES TO BE DEPOSITED INTO THE STATE 

5 AERONAUTICS FUND UNDER SECTION 25 OF THE GENERAL SALES TAX ACT, 

6 1933 PA 167, MCL 205.75, AND SECTION 21 OF THE USE TAX ACT, 1937 PA 

7 94, MCL 205.111, AND ALL MONEY RECEIVED FROM licensing of schools 

8 of aviation, airports, landing fields, airport managers, 

9 registration of aircraft and airmen, and from the operation of 

10 state operated airports, landing fields, and other aeronautical 
2 

S03429'15 (S-1) Final Page TDR 

1 facilities, shall MUST be paid into the state treasury and credited 

2 to this THE STATE AERONAUTICS fund. 

3 (2) THE QUALIFIED AIRPORT FUND IS CREATED. ALL MONEY TO BE 

4 DEPOSITED INTO THE QUALIFIED AIRPORT FUND UNDER SECTION 25 OF THE 

5 GENERAL SALES TAX ACT, 1933 PA 167, MCL 205.75, AND SECTION 21 OF 

6 THE USE TAX ACT, 1937 PA 94, MCL 205.111, MUST BE PAID INTO THE 

7 STATE TREASURY AND CREDITED TO THE QUALIFIED AIRPORT FUND.

8 Enacting section 1. This amendatory act takes effect 90 days 

9 after the date it is enacted into law. 

10 Enacting section 2. This amendatory act does not take effect 

11 unless all of the following bills of the 98th Legislature are 

12 enacted into law: 

13 (a) Senate Bill No. 418. 

14 (b) Senate Bill No. 425. 

15 (c) Senate Bill No. 612. 

16 (d) Senate Bill No. 613. 

17 (e) Senate Bill No. 614. 
04137'15 * TDR 

SENATE BILL No. 612 

SENATE BILL No. 612 

SB-0612, As Passed Senate, December 3, 2015

SENATE BILL No. 612 

November 10, 2015, Introduced by Senator SCHMIDT and referred to the Committee on Commerce. 

 A bill to amend 1945 PA 327, entitled 

"Aeronautics code of the state of Michigan," 

by amending section 7 (MCL 259.7), as amended by 2002 PA 35. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 Sec. 7. As used in this act: 

2 (a) "Person" means an individual, partnership, corporation, 

3 association, governmental entity, or other legal entity. 

4 (b) "Political subdivision" means a county, city, village, or 

5 township of this state, and any other political subdivision, public 

6 corporation, authority, or district in this state that is or may be 

7 authorized by law to acquire, establish, construct, maintain, 

8 improve, and operate airports, landing fields, and other 

9 aeronautical facilities. 

10 (c) "Private landing area" means any location, either on land 

11 or water, that is used for the takeoff or landing of aircraft , and 
2 

04137'15 * Final Page TDR 

1 its THE use OF WHICH is restricted to the owner or persons 

2 authorized by the owner. Notwithstanding any existing limitation or 

3 regulation to the contrary, the owner and any person authorized by 

4 the owner has the right to use that THE private landing area. 

5 Commercial operations shall not be conducted on a private landing 

6 area. 

7 (d) "Public use facility" means an airport, landing field, or 

8 other aeronautical facility that is available for use by the 

9 general public without prior approval of the owner or operator. 

10 (E) "QUALIFIED AIRPORT" MEANS THAT TERM AS DEFINED IN SECTION 

11 109.

12 (F) (e) "Rule" means a rule promulgated pursuant to the 

13 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 

14 24.328. 

15 Enacting section 1. This amendatory act takes effect 90 days 

16 after the date it is enacted into law. 

17 Enacting section 2. This amendatory act does not take effect 

18 unless all of the following bills of the 98th Legislature are 

19 enacted into law: 

20 (a) Senate Bill No. 418. 

21 (b) Senate Bill No. 425. 

22 (c) Senate Bill No. 426. 

23 (d) Senate Bill No. 613. 

24 

25 (e) Senate Bill No. 614. 

26 
S03139'15 * (S-1) KAS 

SB-0613, As Passed Senate, December 3, 2015 

SUBSTITUTE FOR 

SENATE BILL NO. 613 

 A bill to amend 1933 PA 167, entitled 

"General sales tax act," 

by amending section 25 (MCL 205.75), as amended by 2012 PA 226, and 

by adding section 6c. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 SEC. 6C. (1) BEGINNING APRIL 1, 2016 AND EACH CALENDAR QUARTER 

2 THEREAFTER, EACH TAXPAYER MAKING SALES AT RETAIL OF AVIATION FUEL 

3 SHALL, ON OR BEFORE THE LAST DAY OF THE MONTH IN THE MONTH THAT 

4 IMMEDIATELY FOLLOWS THE END OF A CALENDAR QUARTER, FILE AN 

5 INFORMATIONAL REPORT WITH THE DEPARTMENT ON A FORM PRESCRIBED BY 

6 THE DEPARTMENT SHOWING ALL OF THE FOLLOWING FOR THE IMMEDIATELY 

7 PRECEDING CALENDAR QUARTER:

8 (A) THE ENTIRE AMOUNT OF THE TAXPAYER'S TAXABLE SALES AT 

9 RETAIL OF AVIATION FUEL.

10 (B) THE GROSS PROCEEDS OF THE TAXPAYER'S BUSINESS FROM TAXABLE 
2 

S03139'15 * (S-1) KAS 

1 SALES AT RETAIL OF AVIATION FUEL.

2 (C) THE AMOUNT OF TAX FOR WHICH THE TAXPAYER IS LIABLE FROM 

3 SALES AT RETAIL OF AVIATION FUEL.

4 (D) THE NUMBER OF TAXABLE GALLONS OF AVIATION FUEL SOLD BY THE 

5 TAXPAYER AT EACH AIRPORT AND THE GROSS PROCEEDS FROM THE SALES OF 

6 THOSE GALLONS OF AVIATION FUEL.

7 (E) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY 

8 FOR THE PROPER ADMINISTRATION OF THIS ACT.

9 (2) THE REPORT REQUIRED UNDER THIS SECTION SHALL NOT INCLUDE 

10 ANY REMITTANCE FOR TAX, AND DOES NOT CONSTITUTE A RETURN OR 

11 OTHERWISE ALLEVIATE THE TAXPAYER'S OBLIGATIONS UNDER SECTION 6.

12 (3) A TAXPAYER REQUIRED TO FILE THE INFORMATIONAL REPORT UNDER 

13 THIS SECTION THAT FAILS OR REFUSES TO FILE THE INFORMATIONAL REPORT 

14 WITHIN THE TIME AND IN THE MANNER SPECIFIED IN THIS SECTION SHALL 

15 BE LIABLE FOR A PENALTY OF $10.00 PER DAY FOR EACH DAY FOR EACH 

16 SEPARATE FAILURE OR REFUSAL UP TO, BUT NOT EXCEEDING, A MAXIMUM 

17 PENALTY OF $500.00 FOR EACH SEPARATE VIOLATION. THE DEPARTMENT MAY 

18 WAIVE THE PENALTY IF THE TAXPAYER DEMONSTRATES TO THE SATISFACTION 

19 OF THE DEPARTMENT THAT THE FAILURE TO FILE WAS DUE TO REASONABLE 

20 CAUSE.

21 (4) AS USED IN THIS SECTION, "AVIATION FUEL" MEANS FUEL AS 

22 THAT TERM IS DEFINED IN SECTION 4 OF THE AERONAUTICS CODE OF THE 

23 STATE OF MICHIGAN, 1945 PA 327, MCL 259.4.

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

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

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

27 section. 
3 

S03139'15 * (S-1) KAS 

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

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

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

4 PA 140, MCL 141.901 to 141.921. 

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

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

7 established in section 11 of article IX of the state constitution 

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

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

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

11 state school aid fund. 

12 (4) Not less than 27.9% of 25% of the collections of the 

13 general sales tax imposed at a rate of 4% directly or indirectly on 

14 fuels sold to propel motor vehicles upon highways, on the sale of 

15 motor vehicles, and on the sale of the parts and accessories of 

16 motor vehicles by new and used car businesses, used car businesses, 

17 accessory dealer businesses, and gasoline station businesses as 

18 classified by the department of treasury shall be deposited each 

19 year into the comprehensive transportation fund created in section 

20 10b of 1951 PA 51, MCL 247.660b. 

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

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

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

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

25 207.1004, shall be distributed as follows: 

26 (a) An amount sufficient to match available federal highway 

27 funds shall be deposited into the state trunk line fund created in 
4 

S03139'15 * (S-1) KAS 

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

2 federal aid highway funds as those federal funds are made available 

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

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

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

6 as follows: 

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

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

9 MCL 247.662. 

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

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

12 MCL 247.663. 

13 (c) Funds distributed under this subsection shall not exceed 

14 $100,000,000.00. 

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

16 except as otherwise limited in this subsection after the 

17 allocations and distributions are made pursuant to subsections (2) 

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

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

20 and aviation products shall be deposited in the state aeronautics 

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

22 purposes authorized in the aeronautics code of the state of 

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

24 $10,000,000.00 shall be deposited in the state aeronautics fund 

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

26 aeronautics fund" means the state aeronautics fund created in 

27 section 34 of the aeronautics code of the state of Michigan, 1945 
5 

S03139'15 * (S-1) KAS 

1 PA 327, MCL 259.34. 

2 (5) BEGINNING OCTOBER 1, 2016 AND THE FIRST DAY OF EACH 

3 CALENDAR QUARTER THEREAFTER, AN AMOUNT EQUAL TO THE COLLECTIONS FOR 

4 THE CALENDAR QUARTER THAT IS 2 CALENDAR QUARTERS IMMEDIATELY 

5 PRECEDING THE CURRENT CALENDAR QUARTER OF THE TAX IMPOSED UNDER 

6 THIS ACT AT THE ADDITIONAL RATE OF 2% APPROVED BY THE ELECTORS ON 

7 MARCH 15, 1994 FROM THE SALE AT RETAIL OF AVIATION FUEL SHALL BE 

8 DISTRIBUTED AS FOLLOWS:

9 (A) AN AMOUNT EQUAL TO 35% OF THE COLLECTIONS OF THE TAX 

10 IMPOSED AT A RATE OF 2% ON THE SALE AT RETAIL OF AVIATION FUEL 

11 SHALL BE DEPOSITED IN THE STATE AERONAUTICS FUND AND SHALL BE 

12 EXPENDED, ON APPROPRIATION, ONLY FOR THOSE PURPOSES AUTHORIZED IN 

13 THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 327, MCL 

14 259.1 TO 259.208.

15 (B) AN AMOUNT EQUAL TO 65% OF THE COLLECTIONS OF THE TAX 

16 IMPOSED AT A RATE OF 2% ON THE SALE AT RETAIL OF AVIATION FUEL 

17 SHALL BE DEPOSITED IN THE QUALIFIED AIRPORT FUND AND SHALL BE 

18 EXPENDED, ON APPROPRIATION, ONLY FOR THOSE PURPOSES AUTHORIZED 

19 UNDER SECTION 35(2) OF THE AERONAUTICS CODE OF THE STATE OF 

20 MICHIGAN, 1945 PA 327, MCL 259.35. 

21 (6) THE DEPARTMENT SHALL, ON AN ANNUAL BASIS, RECONCILE THE 

22 AMOUNTS DISTRIBUTED UNDER SUBSECTION (5) DURING EACH FISCAL YEAR 

23 WITH THE AMOUNTS ACTUALLY COLLECTED FOR A PARTICULAR FISCAL YEAR 

24 AND SHALL MAKE ANY NECESSARY ADJUSTMENTS, POSITIVE OR NEGATIVE, TO 

25 THE AMOUNTS TO BE DISTRIBUTED FOR THE NEXT SUCCESSIVE CALENDAR 

26 QUARTER THAT BEGINS JANUARY 1. THE STATE TREASURER OR HIS OR HER 

27 DESIGNEE SHALL ANNUALLY PROVIDE TO THE OPERATOR OF EACH QUALIFIED 
6 

S03139'15 * (S-1) KAS 

1 AIRPORT A REPORT OF THE RECONCILIATION PERFORMED UNDER THIS 

2 SUBSECTION. THE RECONCILIATION REPORT IS SUBJECT TO THE 

3 CONFIDENTIALITY RESTRICTIONS AND PENALTIES PROVIDED IN SECTION 

4 28(1)(F) OF 1941 PA 122, MCL 205.28.

5 (7) An amount equal to the collections of the tax imposed at a 

6 rate of 4% under this act from the sale at retail of computer 

7 software as defined in section 1a shall be deposited in the 

8 Michigan health initiative fund created in section 5911 of the 

9 public health code, 1978 PA 368, MCL 333.5911, and shall be 

10 considered in addition to, and is not intended as a replacement for 

11 any other money appropriated to the department of community health

12 OR ITS SUCCESSOR. The funds deposited in the Michigan health 

13 initiative fund on an annual basis shall not be less than 

14 $9,000,000.00 or more than $12,000,000.00. 

15 (8) The balance in the state general fund shall be disbursed 

16 only on an appropriation or appropriations by the legislature. 

17 (9) AS USED IN THIS SECTION:

18 (A) "AVIATION FUEL" MEANS FUEL AS THAT TERM IS DEFINED IN 

19 SECTION 4 OF THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 

20 327, MCL 259.4.

21 (B) "QUALIFIED AIRPORT" MEANS THAT TERM AS DEFINED IN SECTION 

22 109 OF THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 327, 

23 MCL 259.109.

24 (C) "QUALIFIED AIRPORT FUND" MEANS THE QUALIFIED AIRPORT FUND 

25 CREATED IN SECTION 34(2) OF THE AERONAUTICS CODE OF THE STATE OF 

26 MICHIGAN, 1945 PA 327, MCL 259.34. 

27 (D) "STATE AERONAUTICS FUND" MEANS THE STATE AERONAUTICS FUND 
7 

S03139'15 * (S-1) Final Page KAS 

1 CREATED IN SECTION 34(1) OF THE AERONAUTICS CODE OF THE STATE OF 

2 MICHIGAN, 1945 PA 327, MCL 259.34.

3 Enacting section 1. This amendatory act takes effect 90 days 

4 after the date it is enacted into law. 

5 Enacting section 2. This amendatory act does not take effect 

6 unless all of the following bills of the 98th Legislature are 

7 enacted into law: 

8 (a) Senate Bill No. 418. 

9 (b) Senate Bill No. 425. 

10 (c) Senate Bill No. 426. 

11 (d) Senate Bill No. 612. 

12 (e) Senate Bill No. 614. 
S04421'15 (S-1) KAS 

SB-0614, As Passed Senate, December 3, 2015 

SUBSTITUTE FOR 

SENATE BILL NO. 614 

 A bill to amend 1937 PA 94, entitled 

"Use tax act," 

by amending section 21 (MCL 205.111), as amended by 2014 PA 80, and 

by adding section 6c. 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

1 SEC. 6C. (1) BEGINNING APRIL 1, 2016 AND EACH CALENDAR QUARTER 

2 THEREAFTER, EVERY PERSON STORING, USING, OR CONSUMING AVIATION 

3 FUEL, THE STORAGE, USE, OR CONSUMPTION OF WHICH IS SUBJECT TO THE 

4 TAX IMPOSED BY THIS ACT WHEN THE TAX WAS NOT PAID TO A SELLER, AND 

5 EVERY SELLER COLLECTING THE TAX FROM THE PURCHASER FROM SALES OF 

6 AVIATION FUEL SHALL, ON OR BEFORE THE LAST DAY OF THE MONTH IN THE 

7 MONTH THAT IMMEDIATELY FOLLOWS THE END OF A CALENDAR QUARTER, FILE 

8 AN INFORMATIONAL REPORT WITH THE DEPARTMENT ON A FORM PRESCRIBED BY 

9 THE DEPARTMENT SHOWING ALL OF THE FOLLOWING FOR THE IMMEDIATELY 
2 

S04421'15 (S-1) KAS 

1 PRECEDING CALENDAR QUARTER:

2 (A) THE ENTIRE AMOUNT OF TAXABLE AVIATION FUEL SOLD OR 

3 PURCHASED BY THE PERSON, AS APPLICABLE.

4 (B) THE AMOUNT OF TAX FOR WHICH THE PERSON IS LIABLE FROM THE 

5 PURCHASE OR SALE OF AVIATION FUEL.

6 (C) THE NUMBER OF TAXABLE GALLONS OF AVIATION FUEL SOLD OR 

7 PURCHASED BY THE PERSON, AS APPLICABLE, AT EACH AIRPORT AND THE 

8 GROSS PROCEEDS FROM THE SALES OR PURCHASE OF THOSE GALLONS OF 

9 AVIATION FUEL, AS APPLICABLE.

10 (D) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY 

11 FOR THE PROPER ADMINISTRATION OF THIS ACT.

12 (2) THE REPORT REQUIRED UNDER THIS SECTION SHALL NOT INCLUDE 

13 ANY REMITTANCE FOR TAX AND DOES NOT CONSTITUTE A RETURN OR 

14 OTHERWISE ALLEVIATE THE PERSON'S OBLIGATIONS UNDER SECTION 6.

15 (3) A PERSON REQUIRED TO FILE THE INFORMATIONAL REPORT UNDER 

16 THIS SECTION THAT FAILS OR REFUSES TO FILE THE INFORMATIONAL REPORT 

17 WITHIN THE TIME AND IN THE MANNER SPECIFIED IN THIS SECTION SHALL 

18 BE LIABLE FOR A PENALTY OF $10.00 PER DAY FOR EACH DAY FOR EACH 

19 SEPARATE FAILURE OR REFUSAL UP TO, BUT NOT EXCEEDING, A MAXIMUM 

20 PENALTY OF $500.00 FOR EACH SEPARATE VIOLATION. THE DEPARTMENT MAY 

21 WAIVE THE PENALTY IF THE TAXPAYER DEMONSTRATES TO THE SATISFACTION 

22 OF THE DEPARTMENT THAT THE FAILURE TO FILE WAS DUE TO REASONABLE 

23 CAUSE.

24 (4) AS USED IN THIS SECTION, "AVIATION FUEL" MEANS FUEL AS 

25 THAT TERM IS DEFINED IN SECTION 4 OF THE AERONAUTICS CODE OF THE 

26 STATE OF MICHIGAN, 1945 PA 327, MCL 259.4.

27 Sec. 21. (1) Except as provided in subsections (2), (3), and 
3 

S04421'15 (S-1) KAS 

1 (4), AND (5), all money received and collected under this act shall 

2 be deposited by the department of treasury in the state treasury to 

3 the credit of the general fund, to be disbursed only by 

4 appropriations by the legislature. 

5 (2) The collections from the use tax imposed at the additional 

6 rate of 2% approved by the electors March 15, 1994 shall be 

7 deposited in the state school aid fund established in section 11 of 

8 article IX of the state constitution of 1963. 

9 (3) From the money received and collected under this act for 

10 the state share, an amount equal to all revenue lost under the 

11 state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and 

12 all revenue lost from basic school operating mills as a result of 

13 the exemption of personal property under sections 9m, 9n, and 9o of 

14 the general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and 

15 211.9o, as determined by the department, shall be deposited into 

16 the state school aid fund established by section 11 of article IX 

17 of the state constitution of 1963. Funds deposited into the state 

18 school aid fund under this subsection shall not include the portion 

19 of the state share of the use tax imposed at the additional rate of 

20 2% approved by the electors of this state on March 15, 1994 and 

21 dedicated for aid to schools under subsection (2). 

22 (4) Money received and collected under this act for the local 

23 community stabilization share is not state funds, shall not be 

24 credited to the state treasury, and shall be transmitted to the 

25 authority for deposit in the treasury of the authority, to be 

26 disbursed by the authority only as authorized under the local 

27 community stabilization authority act. The local community 
4 

S04421'15 (S-1) KAS 

1 stabilization share is a local tax, not a state tax, and money 

2 received and collected for the local community stabilization share 

3 is money of the authority and not money of this state. 

4 (5) BEGINNING OCTOBER 1, 2016 AND THE FIRST DAY OF EACH 

5 CALENDAR QUARTER THEREAFTER, FROM THE MONEY RECEIVED AND COLLECTED 

6 UNDER THIS ACT FOR THE STATE SHARE, AN AMOUNT EQUAL TO THE 

7 COLLECTIONS FOR THE CALENDAR QUARTER THAT IS 2 CALENDAR QUARTERS 

8 IMMEDIATELY PRECEDING THE CURRENT CALENDAR QUARTER OF THE TAX 

9 IMPOSED UNDER THIS ACT AT THE ADDITIONAL RATE OF 2% APPROVED BY THE 

10 ELECTORS ON MARCH 15, 1994 FROM THE USE, STORAGE, OR CONSUMPTION OF 

11 AVIATION FUEL SHALL BE DISTRIBUTED AS FOLLOWS:

12 (A) AN AMOUNT EQUAL TO 35% OF THE COLLECTIONS OF THE TAX 

13 IMPOSED AT A RATE OF 2% ON THE USE, STORAGE, OR CONSUMPTION OF 

14 AVIATION FUEL SHALL BE DEPOSITED IN THE STATE AERONAUTICS FUND AND 

15 SHALL BE EXPENDED, ON APPROPRIATION, ONLY FOR THOSE PURPOSES 

16 AUTHORIZED IN THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 

17 PA 327, MCL 259.1 TO 259.208.

18 (B) AN AMOUNT EQUAL TO 65% OF THE COLLECTIONS OF THE TAX 

19 IMPOSED AT A RATE OF 2% ON THE USE, STORAGE, OR CONSUMPTION OF 

20 AVIATION FUEL SHALL BE DEPOSITED IN THE QUALIFIED AIRPORT FUND AND 

21 SHALL BE EXPENDED, ON APPROPRIATION, ONLY FOR THOSE PURPOSES 

22 AUTHORIZED UNDER SECTION 35(2) OF THE AERONAUTICS CODE OF THE STATE 

23 OF MICHIGAN, 1945 PA 327, MCL 259.35. 

24 (6) THE DEPARTMENT SHALL, ON AN ANNUAL BASIS, RECONCILE THE 

25 AMOUNTS DISTRIBUTED UNDER SUBSECTION (5) DURING EACH FISCAL YEAR 

26 WITH THE AMOUNTS ACTUALLY COLLECTED FOR A PARTICULAR FISCAL YEAR 

27 AND SHALL MAKE ANY NECESSARY ADJUSTMENTS, POSITIVE OR NEGATIVE, TO 
5 

S04421'15 (S-1) KAS 

1 THE AMOUNTS TO BE DISTRIBUTED FOR THE NEXT SUCCESSIVE CALENDAR 

2 QUARTER THAT BEGINS JANUARY 1. THE STATE TREASURER OR HIS OR HER 

3 DESIGNEE SHALL ANNUALLY PROVIDE TO THE OPERATOR OF EACH QUALIFIED 

4 AIRPORT A REPORT OF THE RECONCILIATION PERFORMED UNDER THIS 

5 SUBSECTION. THE RECONCILIATION REPORT IS SUBJECT TO THE 

6 CONFIDENTIALITY RESTRICTIONS AND PENALTIES PROVIDED IN SECTION 

7 28(1)(F) OF 1941 PA 122, MCL 205.28.

8 (7) AS USED IN THIS SECTION:

9 (A) "AVIATION FUEL" MEANS FUEL AS THAT TERM IS DEFINED IN 

10 SECTION 4 OF THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 

11 327, MCL 259.4.

12 (B) "QUALIFIED AIRPORT" MEANS THAT TERM AS DEFINED IN SECTION 

13 109 OF THE AERONAUTICS CODE OF THE STATE OF MICHIGAN, 1945 PA 327, 

14 MCL 259.109.

15 (C) "QUALIFIED AIRPORT FUND" MEANS THE QUALIFIED AIRPORT FUND 

16 CREATED IN SECTION 34(2) OF THE AERONAUTICS CODE OF THE STATE OF 

17 MICHIGAN, 1945 PA 327, MCL 259.34. 

18 (D) "STATE AERONAUTICS FUND" MEANS THE STATE AERONAUTICS FUND 

19 CREATED IN SECTION 34(1) OF THE AERONAUTICS CODE OF THE STATE OF 

20 MICHIGAN, 1945 PA 327, MCL 259.34.

21 Enacting section 1. This amendatory act takes effect 90 days 

22 after the date it is enacted into law. 

23 Enacting section 2. This amendatory act does not take effect 

24 unless all of the following bills of the 98th Legislature are 

25 enacted into law: 

26 (a) Senate Bill No. 418. 

27 (b) Senate Bill No. 425. 
6 

S04421'15 (S-1) Final Page KAS 

1 (c) Senate Bill No. 426. 

2 (d) Senate Bill No. 612. 

3 (e) Senate Bill No. 613.