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:

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

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

producing or generating power for propelling aircraft using the 3

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

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

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

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

generating power for propelling motor vehicles used upon ON the 8

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

403, MCL 207.1001 to 207.1170. A FOR THE TAX IMPOSED UNDER THIS 102

S03138'15 (S-1) Final Page TDR SUBSECTION, A refund of 1-1/2 cents per gallon shall MUST be made 1

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

that they are operating interstate on scheduled operations. 3

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

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

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

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

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

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

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

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

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

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

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

Aviation fuel qualifying under this subsection shall MUST be 15

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

for LRF". 17

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

after the date it is enacted into law. 19

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

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

enacted into law: 22

(a) Senate Bill No. 425. 23

(b) Senate Bill No. 426. 24

(c) Senate Bill No. 612. 25

(d) Senate Bill No. 613. 26

(e) Senate Bill No. 614. 27S03430'15 (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:

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

currently credited to the state aeronautics fund created under 2

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

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

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

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

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

subject to approval and release by the state administrative board 8

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

this section SUBSECTION or subsequently LATER made available shall 102

S03430'15 (S-1) TDR MUST not be expended upon any ON AN aviation project that is not 1

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

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

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

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

STATE TREASURER SHALL DISBURSE FROM THE QUALIFIED AIRPORT FUND TO 6

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

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

QUALIFIED AIRPORT THE STATE TREASURER SHALL DISBURSE THE AMOUNT 9

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

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

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

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

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

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

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

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

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

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

THE QUALIFIED AIRPORT PURSUANT TO AN ORDINANCE UNDER THE REVENUE 20

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

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

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

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

REHABILITATION, LIGHTING, DRAINAGE SYSTEMS, LAND ACQUISITION, 25

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

SURVEILLANCE SYSTEMS AT THE QUALIFIED AIRPORT. 273

S03430'15 (S-1) Final Page TDR (B) TO DEFRAY THE COSTS OF CAPITAL IMPROVEMENTS TO LANDING 1

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

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

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

SYSTEMS, LAND ACQUISITION, AIRFIELD ROADWAYS, NOISE MITIGATION 5

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

AIRPORT. 7

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

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

MCL 141.103. 10

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

after the date it is enacted into law. 12

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

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

enacted into law: 15

(a) Senate Bill No. 418. 16

(b) Senate Bill No. 426. 17

(c) Senate Bill No. 612. 18

(d) Senate Bill No. 613. 19

(e) Senate Bill No. 614. 20S03429'15 (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:

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

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

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

, THE 3

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

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

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

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

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

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

state operated airports, landing fields, and other aeronautical 102

S03429'15 (S-1) Final Page TDR facilities, shall MUST be paid into the state treasury and credited 1

to this THE STATE AERONAUTICS fund. 2

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

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

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

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

STATE TREASURY AND CREDITED TO THE QUALIFIED AIRPORT FUND. 7

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

after the date it is enacted into law. 9

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

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

enacted into law: 12

(a) Senate Bill No. 418. 13

(b) Senate Bill No. 425. 14

(c) Senate Bill No. 612. 15

(d) Senate Bill No. 613. 16

(e) Senate Bill No. 614. 1704137'15 * TDRSENATE BILL No. 612SENATE BILL No. 612 SB-0612, As Passed Senate, December 3, 2015



# SENATE BILL No. 612

November 10, 2015, Introduced by Senator SCHMID T 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:

Sec. 7. As used in this act: 1

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

association, governmental entity, or other legal entity. 3

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

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

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

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

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

aeronautical facilities. 9

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

or water, that is used for the takeoff or landing of aircraft , and 112

04137'15 * Final Page TDR its THE use OF WHICH is restricted to the owner or persons 1

authorized by the owner. Notwithstanding any existing limitation or 2

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

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

Commercial operations shall not be conducted on a private landing 5

area. 6

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

other aeronautical facility that is available for use by the 8

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

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

109. 11

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

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

24.328. 14

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

after the date it is enacted into law. 16

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

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

enacted into law: 19

(a) Senate Bill No. 418. 20

(b) Senate Bill No. 425. 21

(c) Senate Bill No. 426. 22

(d) Senate Bill No. 613. 23

24

(e) Senate Bill No. 614. 25

26S03139'15 * (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:

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

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

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

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

INFORMATIONAL REPORT WITH THE DEPARTMENT ON A FORM PRESCRIBED BY 5

THE DEPARTMENT SHOWING ALL OF THE FOLLOWING FOR THE IMMEDIATELY 6

PRECEDING CALENDAR QUARTER: 7

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

RETAIL OF AVIATION FUEL. 9

(B) THE GROSS PROCEEDS OF THE TAXPAYER'S BUSINESS FROM TAXABLE 102

S03139'15 * (S-1) KAS SALES AT RETAIL OF AVIATION FUEL. 1

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

SALES AT RETAIL OF AVIATION FUEL. 3

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

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

THOSE GALLONS OF AVIATION FUEL. 6

(E) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY 7

FOR THE PROPER ADMINISTRATION OF THIS ACT. 8

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

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

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

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

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

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

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

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

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

WAIVE THE PENALTY IF THE TAXPAYER DEMONSTRATES TO THE SATISFACTION 18

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

CAUSE. 20

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

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

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

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

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

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

section. 273

S03139'15 * (S-1) KAS (2) Fifteen percent of the collections of the tax imposed at a 1

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

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

PA 140, MCL 141.901 to 141.921. 4

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

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

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

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

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

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

state school aid fund. 11

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

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

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

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

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

accessory dealer businesses, and gasoline station businesses as 17

classified by the department of treasury shall be deposited each 18

year into the comprehensive transportation fund created in section 19

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

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

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

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

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

207.1004, shall be distributed as follows: 25

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

funds shall be deposited into the state trunk line fund created in 274

S03139'15 * (S-1) KAS section 11 of 1951 PA 51, MCL 247.661, for the purpose of matching 1

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

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

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

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

as follows: 6

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

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

MCL 247.662. 9

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

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

MCL 247.663. 12

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

$100,000,000.00. 14

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

except as otherwise limited in this subsection after the 16

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

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

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

and aviation products shall be deposited in the state aeronautics 20

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

purposes authorized in the aeronautics code of the state of 22

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

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

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

aeronautics fund" means the state aeronautics fund created in 26

section 34 of the aeronautics code of the state of Michigan, 1945 275

S03139'15 * (S-1) KAS PA 327, MCL 259.34. 1

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

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

THE CALENDAR QUARTER THAT IS 2 CALENDAR QUARTERS IMMEDIATELY 4

PRECEDING THE CURRENT CALENDAR QUARTER OF THE TAX IMPOSED UNDER 5

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

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

DISTRIBUTED AS FOLLOWS: 8

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

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

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

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

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

259.1 TO 259.208. 14

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

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

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

EXPENDED, ON APPROPRIATION, ONLY FOR THOSE PURPOSES AUTHORIZED 18

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

MICHIGAN, 1945 PA 327, MCL 259.35. 20

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

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

WITH THE AMOUNTS ACTUALLY COLLECTED FOR A PARTICULAR FISCAL YEAR 23

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

THE AMOUNTS TO BE DISTRIBUTED FOR THE NEXT SUCCESSIVE CALENDAR 25

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

DESIGNEE SHALL ANNUALLY PROVIDE TO THE OPERATOR OF EACH QUALIFIED 276

S03139'15 * (S-1) KAS AIRPORT A REPORT OF THE RECONCILIATION PERFORMED UNDER THIS 1

SUBSECTION. THE RECONCILIATION REPORT IS SUBJECT TO THE 2

CONFIDENTIALITY RESTRICTIONS AND PENALTIES PROVIDED IN SECTION 3

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

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

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

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

Michigan health initiative fund created in section 5911 of the 8

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

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

any other money appropriated to the department of community health 11

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

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

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

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

only on an appropriation or appropriations by the legislature. 16

(9) AS USED IN THIS SECTION: 17

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

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

327, MCL 259.4. 20

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

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

MCL 259.109. 23

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

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

MICHIGAN, 1945 PA 327, MCL 259.34. 26

(D) "STATE AERONAUTICS FUND" MEANS THE STATE AERONAUTICS FUND 277

S03139'15 * (S-1) Final Page KAS CREATED IN SECTION 34(1) OF THE AERONAUTICS CODE OF THE STATE OF 1

MICHIGAN, 1945 PA 327, MCL 259.34. 2

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

after the date it is enacted into law. 4

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

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

enacted into law: 7

(a) Senate Bill No. 418. 8

(b) Senate Bill No. 425. 9

(c) Senate Bill No. 426. 10

(d) Senate Bill No. 612. 11

(e) Senate Bill No. 614. 12S04421'15 (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:

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

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

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

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

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

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

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

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

THE DEPARTMENT SHOWING ALL OF THE FOLLOWING FOR THE IMMEDIATELY 92

S04421'15 (S-1) KAS PRECEDING CALENDAR QUARTER: 1

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

PURCHASED BY THE PERSON, AS APPLICABLE. 3

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

PURCHASE OR SALE OF AVIATION FUEL. 5

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

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

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

AVIATION FUEL, AS APPLICABLE. 9

(D) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY 10

FOR THE PROPER ADMINISTRATION OF THIS ACT. 11

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

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

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

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

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

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

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

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

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

WAIVE THE PENALTY IF THE TAXPAYER DEMONSTRATES TO THE SATISFACTION 21

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

CAUSE. 23

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

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

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

Sec. 21. (1) Except as provided in subsections (2), (3), and 273

S04421'15 (S-1) KAS (4), AND (5), all money received and collected under this act shall 1

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

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

appropriations by the legislature. 4

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

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

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

article IX of the state constitution of 1963. 8

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

disbursed by the authority only as authorized under the local 26

community stabilization authority act. The local community 274

S04421'15 (S-1) KAS stabilization share is a local tax, not a state tax, and money 1

received and collected for the local community stabilization share 2

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

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

CALENDAR QUARTER THEREAFTER, FROM THE MONEY RECEIVED AND COLLECTED 5

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

COLLECTIONS FOR THE CALENDAR QUARTER THAT IS 2 CALENDAR QUARTERS 7

IMMEDIATELY PRECEDING THE CURRENT CALENDAR QUARTER OF THE TAX 8

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

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

AVIATION FUEL SHALL BE DISTRIBUTED AS FOLLOWS: 11

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

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

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

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

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

PA 327, MCL 259.1 TO 259.208. 17

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

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

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

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

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

OF MICHIGAN, 1945 PA 327, MCL 259.35. 23

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

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

WITH THE AMOUNTS ACTUALLY COLLECTED FOR A PARTICULAR FISCAL YEAR 26

AND SHALL MAKE ANY NECESSARY ADJUSTMENTS, POSITIVE OR NEGATIVE, TO 275

S04421'15 (S-1) KAS THE AMOUNTS TO BE DISTRIBUTED FOR THE NEXT SUCCESSIVE CALENDAR 1

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

DESIGNEE SHALL ANNUALLY PROVIDE TO THE OPERATOR OF EACH QUALIFIED 3

AIRPORT A REPORT OF THE RECONCILIATION PERFORMED UNDER THIS 4

SUBSECTION. THE RECONCILIATION REPORT IS SUBJECT TO THE 5

CONFIDENTIALITY RESTRICTIONS AND PENALTIES PROVIDED IN SECTION 6

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

(7) AS USED IN THIS SECTION: 8

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

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

327, MCL 259.4. 11

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

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

MCL 259.109. 14

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

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

MICHIGAN, 1945 PA 327, MCL 259.34. 17

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

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

MICHIGAN, 1945 PA 327, MCL 259.34. 20

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

after the date it is enacted into law. 22

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

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

enacted into law: 25

(a) Senate Bill No. 418. 26

(b) Senate Bill No. 425. 276

S04421'15 (S-1) Final Page KAS (c) Senate Bill No. 426. 1

(d) Senate Bill No. 612. 2

(e) Senate Bill No. 613. 3