ESB 425

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 425

AN ACT to amend 1945 PA 327, entitled “An act relating to aeronautics in this state; providing for the development 

and regulation of aeronautics; creating a state aeronautics commission; prescribing powers and duties; providing for the 

licensing, registration, and supervision and control of all aircraft, airports and landing fields, schools of aviation, flying 

clubs, airmen, aviation instructors, airport managers, manufacturers, dealers, and commercial operation in intrastate 

commerce; providing for rules pertaining thereto; prescribing a privilege tax for the use of the aeronautical facilities on 

the lands and waters of this state; providing for the acquisition, development, and operation of airports, landing fields, 

and other aeronautical facilities by this state, by political subdivisions, or by airport authorities; providing for the 

incorporation of airport authorities and providing for the powers, duties, and obligations of airport authorities; providing 

for the transfer of airport management to airport authorities, including the transfer of airport liabilities, employees, and 

operational jurisdiction; providing jurisdiction of crimes, torts, and contracts; providing police powers for those entrusted 

to enforce this act; providing for civil liability of owners, operators, and others; making hunting from aircraft unlawful; 

providing for a repair station operators lien; providing for appeals from rules or orders issued by the commission; 

providing for the transfer from the Michigan board of aeronautics to the aeronautics commission all properties and 

funds held by the board of aeronautics; providing for a state aeronautics fund and making an appropriation therefor; 

prescribing penalties; and making uniform the law with reference to state development and regulation of aeronautics,” 

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

The People of the State of Michigan enact:

Sec. 35. (1) All money in and credited to the state aeronautics fund created under section 34(1) is appropriated for 

carrying out this act, and to meet the expenses of the department. However, money in and credited to the state 

aeronautics fund is not appropriated for carrying out subsection (2), except as provided in subsection (4). Upon 

appropriation, the state treasurer may draw a warrant on the state treasury to make payments in the amounts and to 

the persons as directed by the department subject to approval and release by the state administrative board of the 

authorized amounts. However, money appropriated under this subsection or later made available must not be expended 

on an aviation project not carried out under the supervision and direction of the department.

(2) Subject to subsection (3), all money in and credited to the qualified airport fund created under section 34(2) is 

appropriated for carrying out the purposes described in this subsection. On a quarterly basis, the state treasurer shall 

disburse from the qualified airport fund to the operator of a qualified airport an amount equal to the amount deposited 

into the qualified airport fund. If there is more than 1 qualified airport the state treasurer shall disburse the amount 

deposited into the qualified airport fund to each operator of a qualified airport in the same proportion that the amount 

of taxable gallons of fuel sold at the qualified airport during the preceding fiscal year bears to the total amount of 

taxable gallons of fuel sold at all qualified airports during the preceding fiscal year. An operator of a qualified airport 

shall use money disbursed to the operator under this subsection in the following order of priority:

(a) For deposit in a bond and interest redemption account created by ordinance of the qualified airport solely to pay 

the next scheduled payments for revenue bonds issued by the operator of the qualified airport pursuant to an ordinance 

under the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140, to finance capital improvements to landing 

areas at the qualified airport. The capital improvements to landing areas may include, but are not limited to, runway 

(86)

Act No. 258

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 425

and taxiway design, construction, repair or rehabilitation, lighting, drainage systems, land acquisition, airfield roadways, 

noise mitigation systems, deicing pads, and surveillance systems at the qualified airport.

(b) To defray the costs of capital improvements to landing areas of the qualified airport. The capital improvements 

to landing areas may include, but are not limited to, runway and taxiway design, construction, repair or rehabilitation, 

lighting, drainage systems, land acquisition, airfield roadways, noise mitigation systems, deicing pads, and surveillance 

systems at the qualified airport.

(3) If the Federal Aviation Administration or a federal court of competent jurisdiction issues a final decision, decision 

and order, or order in a proceeding finding that the deposit or credit of money to the qualified airport fund under this 

act, section 25 of the general sales tax act, 1933 PA 167, MCL 205.75, and section 21 of the use tax act, 1937 PA 94, 

MCL 205.111, does not comply with, or disbursements from the qualified airport fund as authorized under subsection (2) 

do not comply with, the federal airport revenue use requirements under 49 USC 47107(b) or 49 USC 47133, the state 

treasurer shall transfer money in the qualified airport fund to the state aeronautics fund as necessary to comply with 

the final decision, decision and order, or order. The state treasurer shall only transfer money from the qualified airport 

fund under this subsection while the final decision, decision and order, or order is in effect and binding on this state.

(4) The department shall, on a quarterly basis, disburse all money transferred from the qualified airport fund to the 

state aeronautics fund under subsection (3) to the operator of a qualified airport. The department shall not disburse 

money under this subsection if the disbursement would violate the terms of the final decision, decision and order, or 

order of the Federal Aviation Administration or federal court. If there is more than 1 qualified airport, the department 

shall disburse the money to each operator of a qualified airport in the same proportion that the amount of taxable 

gallons of fuel sold at the qualified airport during the preceding fiscal year bears to the total amount of taxable gallons 

of fuel sold at all qualified airports during the preceding fiscal year. An operator of a qualified airport that receives 

money under this subsection shall only use the money for the purposes, and in the order of priority, described in 

subsection (2).

(5) By April 1, 2017, and by April 1 of each year after 2017, the operator of a qualified airport shall file a report with 

the department describing how the money disbursed to the operator of the qualified airport under this section was 

spent or otherwise used by the operator of the qualified airport during the preceding calendar year. The report must 

be on a form or in a format prescribed or approved by the department.

(6) As used in this section, “ordinance” means that term as defined in section 3 of the revenue bond act of 1933, 1933 

PA 94, MCL 141.103.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 418.

(b) Senate Bill No. 426.

(c) Senate Bill No. 612.

(d) Senate Bill No. 613.

(e) Senate Bill No. 614.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor
ESB 426

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 426

AN ACT to amend 1945 PA 327, entitled “An act relating to aeronautics in this state; providing for the development 

and regulation of aeronautics; creating a state aeronautics commission; prescribing powers and duties; providing for the 

licensing, registration, and supervision and control of all aircraft, airports and landing fields, schools of aviation, flying 

clubs, airmen, aviation instructors, airport managers, manufacturers, dealers, and commercial operation in intrastate 

commerce; providing for rules pertaining thereto; prescribing a privilege tax for the use of the aeronautical facilities on 

the lands and waters of this state; providing for the acquisition, development, and operation of airports, landing fields, 

and other aeronautical facilities by this state, by political subdivisions, or by airport authorities; providing for the 

incorporation of airport authorities and providing for the powers, duties, and obligations of airport authorities; providing 

for the transfer of airport management to airport authorities, including the transfer of airport liabilities, employees, and 

operational jurisdiction; providing jurisdiction of crimes, torts, and contracts; providing police powers for those entrusted 

to enforce this act; providing for civil liability of owners, operators, and others; making hunting from aircraft unlawful; 

providing for a repair station operators lien; providing for appeals from rules or orders issued by the commission; 

providing for the transfer from the Michigan board of aeronautics to the aeronautics commission all properties and 

funds held by the board of aeronautics; providing for a state aeronautics fund and making an appropriation therefor; 

prescribing penalties; and making uniform the law with reference to state development and regulation of aeronautics,” 

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

The People of the State of Michigan enact:

Sec. 34. (1) The state aeronautics fund is created. All money received from aviation fuel taxes imposed under 

section 203(1), the portion of sales and use taxes to be deposited into the state aeronautics fund under section 25 of the 

general sales tax act, 1933 PA 167, MCL 205.75, and section 21 of the use tax act, 1937 PA 94, MCL 205.111, any money 

required to be deposited into the state aeronautics fund under section 35(3), and all money received from licensing of 

schools of aviation, airports, landing fields, airport managers, registration of aircraft and airmen, and from the operation 

of state operated airports, landing fields, and other aeronautical facilities, must be paid into the state treasury and 

credited to the state aeronautics fund.

(2) The qualified airport fund is created. All money to be deposited into the qualified airport fund under section 25 

of the general sales tax act, 1933 PA 167, MCL 205.75, and section 21 of the use tax act, 1937 PA 94, MCL 205.111, must 

be paid into the state treasury and credited to the qualified airport fund.

(87)

Act No. 259

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 426

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 418.

(b) Senate Bill No. 425.

(c) Senate Bill No. 612.

(d) Senate Bill No. 613.

(e) Senate Bill No. 614.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor
ESB 418

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 418

AN ACT to amend 1945 PA 327, entitled “An act relating to aeronautics in this state; providing for the development 

and regulation of aeronautics; creating a state aeronautics commission; prescribing powers and duties; providing for the 

licensing, registration, and supervision and control of all aircraft, airports and landing fields, schools of aviation, flying 

clubs, airmen, aviation instructors, airport managers, manufacturers, dealers, and commercial operation in intrastate 

commerce; providing for rules pertaining thereto; prescribing a privilege tax for the use of the aeronautical facilities on 

the lands and waters of this state; providing for the acquisition, development, and operation of airports, landing fields, 

and other aeronautical facilities by this state, by political subdivisions, or by airport authorities; providing for the 

incorporation of airport authorities and providing for the powers, duties, and obligations of airport authorities; providing 

for the transfer of airport management to airport authorities, including the transfer of airport liabilities, employees, and 

operational jurisdiction; providing jurisdiction of crimes, torts, and contracts; providing police powers for those entrusted 

to enforce this act; providing for civil liability of owners, operators, and others; making hunting from aircraft unlawful; 

providing for a repair station operators lien; providing for appeals from rules or orders issued by the commission; 

providing for the transfer from the Michigan board of aeronautics to the aeronautics commission all properties and 

funds held by the board of aeronautics; providing for a state aeronautics fund and making an appropriation therefor; 

prescribing penalties; and making uniform the law with reference to state development and regulation of aeronautics,” 

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

The People of the State of Michigan enact:

Sec. 203. (1) A privilege tax at the rate of 3 cents per gallon is imposed on all fuel sold or used in producing or 

generating power for propelling aircraft using the aeronautical facilities on the lands and waters of this state. The tax 

must be collected and remitted in the same manner and method and at the same time as prescribed by law for the 

collection of the gasoline tax imposed on all gasoline used in producing or generating power for propelling motor 

vehicles used on the public highways of this state under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170. 

For the tax imposed under this subsection, a refund of 1-1/2 cents per gallon must be made to airline operators who 

show proof within 6 months after purchase that they are operating interstate on scheduled operations.

(2) If a person required to register with the department of treasury under section 94 of the motor fuel tax act, 2000 

PA 403, MCL 207.1094, is not registered, the person shall not purchase fuel under this act at the rate imposed by 

subsection (1), but shall pay the applicable rate imposed on motor fuel by section 8 of the motor fuel tax act, 2000 

PA 403, MCL 207.1008.

(3) The tax imposed under subsection (1) is not imposed on aviation fuel if the purchaser has certified in writing to 

the seller that the aviation fuel is being purchased solely for the purpose of formulating leaded racing fuel as that term 

is defined in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004. Aviation fuel qualifying under this 

subsection must be identified on shipping papers and invoices as “aviation fuel exempt for LRF”.

(85)

Act No. 260

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 418

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 425.

(b) Senate Bill No. 426.

(c) Senate Bill No. 612.

(d) Senate Bill No. 613.

(e) Senate Bill No. 614.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor
ESB 612

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 612

AN ACT to amend 1945 PA 327, entitled “An act relating to aeronautics in this state; providing for the development 

and regulation of aeronautics; creating a state aeronautics commission; prescribing powers and duties; providing for the 

licensing, registration, and supervision and control of all aircraft, airports and landing fields, schools of aviation, flying 

clubs, airmen, aviation instructors, airport managers, manufacturers, dealers, and commercial operation in intrastate 

commerce; providing for rules pertaining thereto; prescribing a privilege tax for the use of the aeronautical facilities on 

the lands and waters of this state; providing for the acquisition, development, and operation of airports, landing fields, 

and other aeronautical facilities by this state, by political subdivisions, or by airport authorities; providing for the 

incorporation of airport authorities and providing for the powers, duties, and obligations of airport authorities; providing 

for the transfer of airport management to airport authorities, including the transfer of airport liabilities, employees, and 

operational jurisdiction; providing jurisdiction of crimes, torts, and contracts; providing police powers for those entrusted 

to enforce this act; providing for civil liability of owners, operators, and others; making hunting from aircraft unlawful; 

providing for a repair station operators lien; providing for appeals from rules or orders issued by the commission; 

providing for the transfer from the Michigan board of aeronautics to the aeronautics commission all properties and 

funds held by the board of aeronautics; providing for a state aeronautics fund and making an appropriation therefor; 

prescribing penalties; and making uniform the law with reference to state development and regulation of aeronautics,” 

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:

(a) “Person” means an individual, partnership, corporation, association, governmental entity, or other legal entity.

(b) “Political subdivision” means a county, city, village, or township of this state, and any other political subdivision, 

public corporation, authority, or district in this state that is or may be authorized by law to acquire, establish, construct, 

maintain, improve, and operate airports, landing fields, and other aeronautical facilities.

(c) “Private landing area” means any location, either on land or water, that is used for the takeoff or landing of 

aircraft and the use of which is restricted to the owner or persons authorized by the owner. Notwithstanding any 

existing limitation or regulation to the contrary, the owner and any person authorized by the owner has the right to use 

the private landing area. Commercial operations shall not be conducted on a private landing area.

(d) “Public use facility” means an airport, landing field, or other aeronautical facility that is available for use by the 

general public without prior approval of the owner or operator.

(e) “Qualified airport” means that term as defined in section 109.

(f) “Rule” means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 

to 24.328.

(88)

Act No. 261

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 612

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 418.

(b) Senate Bill No. 425.

(c) Senate Bill No. 426.

(d) Senate Bill No. 613. 

(e) Senate Bill No. 614.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor
ESB 613

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Hansen

ENROLLED SENATE BILL No. 613

AN ACT to amend 1933 PA 167, entitled “An act to provide for the raising of additional public revenue by prescribing 

certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; 

to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for 

the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for 

violations of the provisions of this 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 thereafter, each taxpayer making sales at retail of 

aviation fuel shall, on or before the last day of the month in the month that immediately follows the end of a calendar 

quarter, file an informational report with the department on a form prescribed by the department showing all of the 

following for the immediately preceding calendar quarter:

(a) The entire amount of the taxpayer’s taxable sales at retail of aviation fuel.

(b) The gross proceeds of the taxpayer’s business from taxable sales at retail of aviation fuel.

(c) The amount of tax for which the taxpayer is liable from sales at retail of aviation fuel.

(d) The number of taxable gallons of aviation fuel sold by the taxpayer at each airport and the gross proceeds from 

the sales of those gallons of aviation fuel.

(e) Any other information the department considers necessary for the proper administration of this act.

(2) The report required under this section shall not include any remittance for tax, and does not constitute a return 

or otherwise alleviate the taxpayer’s obligations under section 6.

(3) A taxpayer required to file the informational report under this section that fails or refuses to file the informational 

report within the time and in the manner specified in this section shall be liable for a penalty of $10.00 per day for each 

day for each separate failure or refusal up to, but not exceeding, a maximum penalty of $500.00 for each separate 

violation. The department may waive the penalty if the taxpayer demonstrates to the satisfaction of the department 

that the failure to file was due to reasonable cause.

(4) As used in this section, “aviation fuel” means fuel as that term is defined in section 4 of the aeronautics code of 

the state of Michigan, 1945 PA 327, MCL 259.4.

(89)

Act No. 262

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 613

Sec. 25. (1) All money received and collected under this act shall be deposited by the department in the state 

treasury to the credit of the general fund, except as otherwise provided in this section.

(2) Fifteen percent of the collections of the tax imposed at a rate of 4% shall be distributed to cities, villages, and 

townships pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.

(3) Sixty percent of the collections of the tax imposed at a rate of 4% shall be deposited in the state school aid fund 

established in section 11 of article IX of the state constitution of 1963 and distributed as provided by law. In addition, 

all of the collections of the tax imposed at the additional rate of 2% approved by the electors March 15, 1994 shall be 

deposited in the state school aid fund.

(4) Not less than 27.9% of 25% of the collections of the general sales tax imposed at a rate of 4% directly or indirectly 

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

accessories of motor vehicles by new and used car businesses, used car businesses, accessory dealer businesses, and 

gasoline station businesses as classified by the department shall be deposited each year into the comprehensive 

transportation fund created in section 10b of 1951 PA 51, MCL 247.660b.

(5) Beginning October 1, 2016 and the first day of each calendar quarter thereafter, an amount equal to the collections 

for the calendar quarter that is 2 calendar quarters immediately preceding the current calendar quarter of the tax 

imposed under this act at the additional rate of 2% approved by the electors on March 15, 1994 from the sale at retail 

of aviation fuel shall be distributed as follows:

(a) An amount equal to 35% of the collections of the tax imposed at a rate of 2% on the sale at retail of aviation fuel 

shall be deposited in the state aeronautics fund and shall be expended, on appropriation, only for those purposes 

authorized in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.

(b) An amount equal to 65% of the collections of the tax imposed at a rate of 2% on the sale at retail of aviation fuel 

shall be deposited in the qualified airport fund and shall be expended, on appropriation, only for those purposes 

authorized under section 35 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.35.

(6) The department shall, on an annual basis, reconcile the amounts distributed under subsection (5) during each 

fiscal year with the amounts actually collected for a particular fiscal year and shall make any necessary adjustments, 

positive or negative, to the amounts to be distributed for the next successive calendar quarter that begins January 1. 

The state treasurer or his or her designee shall annually provide to the operator of each qualified airport a report of the 

reconciliation performed under this subsection. The reconciliation report is subject to the confidentiality restrictions and 

penalties provided in section 28(1)(f) of 1941 PA 122, MCL 205.28.

(7) An amount equal to the collections of the tax imposed at a rate of 4% under this act from the sale at retail of 

computer software as defined in section 1a shall be deposited in the Michigan health initiative fund created in section 5911 

of the public health code, 1978 PA 368, MCL 333.5911, and shall be considered in addition to, and is not intended as a 

replacement for any other money appropriated to the department of community health or its successor. The funds 

deposited in the Michigan health initiative fund on an annual basis shall not be less than $9,000,000.00 or more than 

$12,000,000.00.

(8) The balance in the state general fund shall be disbursed only on an appropriation or appropriations by the 

legislature.

(9) As used in this section:

(a) “Aviation fuel” means fuel as that term is defined in section 4 of the aeronautics code of the state of Michigan, 

1945 PA 327, MCL 259.4.

(b) “Qualified airport” means that term as defined in section 109 of the aeronautics code of the state of Michigan, 

1945 PA 327, MCL 259.109.

(c) “Qualified airport fund” means the qualified airport fund created in section 34(2) of the aeronautics code of the 

state of Michigan, 1945 PA 327, MCL 259.34.

(d) “State aeronautics fund” means the state aeronautics fund created in section 34(1) of the aeronautics code of the 

state of Michigan, 1945 PA 327, MCL 259.34.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 418.

(b) Senate Bill No. 425.

(c) Senate Bill No. 426.

(d) Senate Bill No. 612.

(e) Senate Bill No. 614.
3 ESB 613

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor
ESB 614

STATE OF MICHIGAN

98TH LEGISLATURE

REGULAR SESSION OF 2015

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 614

AN ACT to amend 1937 PA 94, entitled “An act to provide for the levy, assessment, and collection of a specific excise 

tax on the storage, use, or consumption in this state of tangible personal property and certain services; to appropriate 

the proceeds of that tax; to prescribe penalties; and to make appropriations,” 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 thereafter, every person storing, using, or consuming 

aviation fuel, the storage, use, or consumption of which is subject to the tax imposed by this act when the tax was not 

paid to a seller, and every seller collecting the tax from the purchaser from sales of aviation fuel shall, on or before the 

last day of the month in the month that immediately follows the end of a calendar quarter, file an informational report 

with the department on a form prescribed by the department showing all of the following for the immediately preceding 

calendar quarter:

(a) The entire amount of taxable aviation fuel sold or purchased by the person, as applicable.

(b) The amount of tax for which the person is liable from the purchase or sale of aviation fuel.

(c) The number of taxable gallons of aviation fuel sold or purchased by the person, as applicable, at each airport and 

the gross proceeds from the sales or purchase of those gallons of aviation fuel, as applicable.

(d) Any other information the department considers necessary for the proper administration of this act.

(2) The report required under this section shall not include any remittance for tax and does not constitute a return 

or otherwise alleviate the person’s obligations under section 6.

(3) A person required to file the informational report under this section that fails or refuses to file the informational 

report within the time and in the manner specified in this section shall be liable for a penalty of $10.00 per day for each 

day for each separate failure or refusal up to, but not exceeding, a maximum penalty of $500.00 for each separate 

violation. The department may waive the penalty if the taxpayer demonstrates to the satisfaction of the department 

that the failure to file was due to reasonable cause.

(90)

Act No. 263

Public Acts of 2015

Approved by the Governor

December 23, 2015

Filed with the Secretary of State

December 23, 2015

EFFECTIVE DATE: March 22, 2016
2

ESB 614

(4) As used in this section, “aviation fuel” means fuel as that term is defined in section 4 of the aeronautics code of 

the state of Michigan, 1945 PA 327, MCL 259.4.

Sec. 21. (1) Except as provided in subsections (2), (3), (4), and (5), all money received and collected under this act 

shall be deposited by the department of treasury in the state treasury to the credit of the general fund, to be disbursed 

only by appropriations by the legislature.

(2) The collections from the use tax imposed at the additional rate of 2% approved by the electors March 15, 1994 

shall be deposited in the state school aid fund established in section 11 of article IX of the state constitution of 1963.

(3) From the money received and collected under this act for the state share, an amount equal to all revenue lost 

under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and all revenue lost from basic school operating 

mills as a result of the exemption of personal property under sections 9m, 9n, and 9o of the general property tax act, 

1893 PA 206, MCL 211.9m, 211.9n, and 211.9o, as determined by the department, shall be deposited into the state school 

aid fund established by section 11 of article IX of the state constitution of 1963. Funds deposited into the state school 

aid fund under this subsection shall not include the portion of the state share of the use tax imposed at the additional 

rate of 2% approved by the electors of this state on March 15, 1994 and dedicated for aid to schools under subsection (2).

(4) Money received and collected under this act for the local community stabilization share is not state funds, shall 

not be credited to the state treasury, and shall be transmitted to the authority for deposit in the treasury of the 

authority, to be disbursed by the authority only as authorized under the local community stabilization authority act. The 

local community stabilization share is a local tax, not a state tax, and money received and collected for the local 

community stabilization share is money of the authority and not money of this state.

(5) Beginning October 1, 2016 and the first day of each calendar quarter thereafter, from the money received and 

collected under this act for the state share, an amount equal to the collections for the calendar quarter that is 2 calendar 

quarters immediately preceding the current calendar quarter of the tax imposed under this act at the additional rate of 

2% approved by the electors on March 15, 1994 from the use, storage, or consumption of aviation fuel shall be distributed 

as follows:

(a) An amount equal to 35% of the collections of the tax imposed at a rate of 2% on the use, storage, or consumption 

of aviation fuel shall be deposited in the state aeronautics fund and shall be expended, on appropriation, only for those 

purposes authorized in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.

(b) An amount equal to 65% of the collections of the tax imposed at a rate of 2% on the use, storage, or consumption 

of aviation fuel shall be deposited in the qualified airport fund and shall be expended, on appropriation, only for those 

purposes authorized under section 35 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.35.

(6) The department shall, on an annual basis, reconcile the amounts distributed under subsection (5) during each 

fiscal year with the amounts actually collected for a particular fiscal year and shall make any necessary adjustments, 

positive or negative, to the amounts to be distributed for the next successive calendar quarter that begins January 1. 

The state treasurer or his or her designee shall annually provide to the operator of each qualified airport a report of the 

reconciliation performed under this subsection. The reconciliation report is subject to the confidentiality restrictions and 

penalties provided in section 28(1)(f) of 1941 PA 122, MCL 205.28.

(7) As used in this section:

(a) “Aviation fuel” means fuel as that term is defined in section 4 of the aeronautics code of the state of Michigan, 

1945 PA 327, MCL 259.4.

(b) “Qualified airport” means that term as defined in section 109 of the aeronautics code of the state of Michigan, 

1945 PA 327, MCL 259.109.

(c) “Qualified airport fund” means the qualified airport fund created in section 34(2) of the aeronautics code of the 

state of Michigan, 1945 PA 327, MCL 259.34.

(d) “State aeronautics fund” means the state aeronautics fund created in section 34(1) of the aeronautics code of the 

state of Michigan, 1945 PA 327, MCL 259.34.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 98th Legislature 

are enacted into law:

(a) Senate Bill No. 418.

(b) Senate Bill No. 425.

(c) Senate Bill No. 426.

(d) Senate Bill No. 612.

(e) Senate Bill No. 613.
3 ESB 614

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor