HB-5705, As Passed House, December 13, 2012HB-5705, As Passed Senate, December 4, 2012

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5705

 

(As amended December 4, 2012)

 

 

 

 

 

 

 

 

     <<A bill to amend 1990 PA 100, entitled

 

"City utility users tax act,"

 

by amending section 2 of chapter 1 (MCL 141.1152), as amended by

 

2011 PA 57, and by adding sections 8a and 8b to chapter 1.>>

 

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

CHAPTER 1

 

     Sec. 2. (1) The governing body of a city having a population

 

of 600,000 or more, by a lawfully adopted ordinance that

 

incorporates by reference the uniform city utility users tax

 

ordinance set forth in chapter 2, may levy, assess, and collect

 

from those users in that city a utility users tax as provided in

 

the ordinance. However, a uniform city utility users tax ordinance

 

containing substantially the same provisions provided for in

 


chapter 2 adopted by the governing body of a city before June 13,

 

1990 that has not been rescinded by that governing body is

 

considered an ordinance adopted under this act and a tax imposed

 

and collected under that ordinance is revived. The governing body

 

shall set the rate of tax in increments of 1/4 of 1% that shall not

 

exceed 5%. If a city currently eligible to levy a tax under this

 

act enters into a contract with a lighting authority, in which it

 

pledges revenues from the taxes levied under this act, the city is

 

authorized to levy the tax under this act until all related

 

outstanding bonds of the lighting authority have been paid

 

notwithstanding the population of that city.

 

     (2) A uniform city utility users tax ordinance may be lawfully

 

adopted or unless revenues have been otherwise pledged rescinded by

 

the governing body at any time and its adoption shall become

 

effective on the first day of any month, following adoption of the

 

ordinance, as specified in the ordinance. The ordinance may be

 

rescinded at any time by the governing body in the same manner in

 

which the ordinance was adopted and with appropriate enforcement,

 

collection, and refund provisions with respect to liabilities

 

incurred before the effective date of its rescission. The ordinance

 

shall not be amended except as provided by the legislature. A

 

village and a city under 600,000 population shall not impose and

 

collect a utility users tax except as otherwise provided in

 

subsection (1). A city that adopts or rescinds the tax shall notify

 

within 7 days by certified mail all public utilities or resale

 

customers affected by the action of the governing body. Except as

 

otherwise provided in this section, a city now having or that may

 


attain a population of 600,000 or more shall not impose a utility

 

users tax except by adopting the entire uniform city utility users

 

tax ordinance as set forth in chapter 2.

 

     (3) The administrator, as that term is defined in chapter 2,

 

of the tax shall file a report indicating the total amount of

 

revenue collected in the prior fiscal year with the state revenue

 

commissioner by August 1 of each year, beginning on August 1, 1985.

 

The administrator shall make the report available to the public at

 

the same time.

 

     (4) The Unless revenues have been otherwise pledged to pay

 

bonds issued by a lighting authority, the revenue generated from

 

this tax shall be placed directly in the budget of the police

 

department of a city described in this act and shall be used

 

exclusively to retain or hire police officers.

 

     (5) Notwithstanding subsection (4) or any ordinance of a city

 

to the contrary, a city that forms a lighting authority shall pay

 

$12,500,000.00 annually to that lighting authority from the

 

proceeds of the tax authorized under this act. If the lighting

 

authority issues bonds pursuant to a contract with the city under

 

this act and pledges revenues from taxes levied under this act,

 

those revenues shall be deposited and used as provided in this act.

 

After a contract described in this subsection is entered into, the

 

trustee, after setting aside funds as required by the trust

 

indenture, shall pay to the lighting authority $12,500,000.00, less

 

the amount set aside. The trust indenture shall provide that the

 

remaining revenues be returned to the city. Nothing in this

 

subsection shall obligate a city or trustee to remit to the

 


lighting authority more than is collected from taxes levied under

 

this act.

 

     (6) (5) As used in this section, "police officer" means a

 

police officer, investigator, or police sergeant.

 

     (7) As used in this act, "lighting authority" means a lighting

 

authority created under the municipal lighting authority act.

 

     Sec. 8a. Notwithstanding any ordinance of a city levying a tax

 

authorized by this act, if a city levying the tax authorized by

 

this act enters into a contract with a lighting authority, all of

 

the following shall apply:

 

     (a) The city shall send notice to each public utility and

 

resale customer to remit taxes collected under this act to a

 

trustee until notified by that trustee to return the funds to the

 

city.

 

     (b) After receiving a notice described in subdivision (a),

 

each public utility and resale customer so notified shall remit

 

taxes as directed by the notice to the trustee until notified by

 

the trustee to remit taxes to the city.

 

     (c) The trustee shall notify each public utility and resale

 

customer to remit taxes collected under this act to the city within

 

45 days of the retirement of debt service on the bonds issued by a

 

lighting authority.

 

     Sec. 8b. Notwithstanding any ordinance of a city levying the

 

tax or any other provision of this act, any utility, resale

 

customer, other entity, or person that collects a tax or any money

 

represented to be a tax authorized under this act holds the amount

 

so collected in trust for the benefit of the city, or for

 


House Bill No. 5705 as amended June 14, 2012

 

bondholders secured by a pledge with a lighting authority.

 

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House Bill NO. 5705 as amended June 14, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


House Bill No. 5705 (H-1) as amended June 7, 2012

                          as amended June 14, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                >>

     [Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 96th Legislature are enacted into law:

     (a) Senate Bill No. 970.

     (b) House Bill No. 5688.]