Bill Text: MI HB5604 | 2009-2010 | 95th Legislature | Introduced

---

Bill Title: Taxation; excise taxes; entertainment tax; provide for, and earmark to history, arts, and libraries. Creates new act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-12-01 - Printed Bill Filed 11/19/2009 [HB5604 Detail]

Download: Michigan-2009-HB5604-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5604

 

November 18, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Tax Policy.

 

     A bill to provide for the levy, collection, and administration

 

of an excise tax on the admission charge to an entertainment event

 

in this state; to provide for the disposition of the proceeds of

 

the tax; to prescribe the powers and duties of certain state

 

departments; and to provide for certain exemptions.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"entertainment event excise tax act".

 

     Sec. 2. As used in this act:

 

     (a) "Admission charge" means the actual charge, excluding

 

memberships, paid to attend the entertainment event.

 

     (b) "Department" means the department of treasury.

 

     (c) "Entertainment event" or "event" means 1 or more of the

 

following that is not an exempt event:

 

     (i) Zoo.

 

     (ii) Live theater.

 

     (iii) Museum.

 

     (iv) Opera.

 

     (v) Professional sporting event.

 

     (vi) Collegiate athletic event.

 

     (vii) Concert.

 

     (viii) Temporary or transient entertainment production.

 

     (ix) Botanical gardens.

 

     (x) Amusement parks.

 

     (xi) Temporary or transient art, music, theatrical, dance,

 

literary, or cultural festival.

 

     (xii) Topless events allowed pursuant to a topless activity

 

permit issued under section 916 of the Michigan liquor control code

 

of 1998, 1998 PA 58, MCL 436.1916.

 

     (xiii) Events allowed pursuant to a special license as defined

 

in section 111 of the Michigan liquor control code of 1998, 1998 PA

 

58, MCL 436.1111.

 

     (d) "Exempt event" means an event that is 1 or more of the

 

following:

 

     (i) All high school, middle school, and elementary or grade

 

school events.

 

     (ii) Events sponsored by a nonprofit or charitable

 

organization, unless that organization received funds under this

 

act in the immediately preceding 12-month period.

 

     (iii) Events sponsored by a nonprofit arts or cultural

 

organization that has an annual operating budget of less than

 

$200,000.00.

 

     (iv) Individual fund-raising events sponsored or conducted by

 

and the proceeds of which benefit a nonprofit or charitable

 

organization.

 

     (v) Paid-admission events presented within or as a

 

programmatic part of an art, culture, or entertainment facility or

 

festival for which a previously paid entry or gate admission has

 

been collected to that facility or festival which has a higher

 

ticket price.

 

     (vi) State, county, local, or agricultural fairs.

 

     (e) "History, arts, and library fund" means the history, arts,

 

and library fund created in section 6.

 

     Sec. 3. (1) An excise tax is levied on the admission charge of

 

each entertainment event in this state.

 

     (2) The rate of the excise tax is 2% of the admission charge

 

of the entertainment event.

 

     Sec. 4. (1) The excise tax shall be collected at the same time

 

and in the same manner as the tax imposed under the use tax act,

 

1937 PA 94, MCL 205.91 to 205.111.

 

     (2) The excise tax imposed by this act shall be administered

 

by the state treasurer under 1941 PA 122, MCL 205.1 to 205.31.

 

     (3) The state treasurer shall prescribe the forms necessary

 

for the administration of this act and may promulgate necessary

 

rules under the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328.

 

     Sec. 5. A taxpayer may reimburse himself or herself by adding

 

the amount of the tax to the admission charge.

 

     Sec. 6. (1) The history, arts, and library fund is created

 

within the state treasury.

 

     (2) The proceeds from the collection of the excise tax imposed

 

under this act shall be deposited with the state treasurer and

 

credited to the fund.

 

     (3) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (4) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (5) The department shall expend money from the fund, upon

 

annual appropriation, for arts, culture, and history.