SENATE BILL No. 235

 

 

March 20, 2019, Introduced by Senator SANTANA and referred to the Committee on Finance.

 

 

 

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

 

following that is not an exempt event that has a seating capacity

 

of 500 or more:


     (i) Zoo.

 

     (ii) Live theater.

 

     (iii) Museum.

 

     (iv) Opera.

 

     (v) Professional sporting event.

 

     (vi) Concert.

 

     (vii) Temporary or transient entertainment production.

 

     (viii) Botanical gardens.

 

     (ix) Amusement parks.

 

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

 

literary, or cultural festival.

 

     (c) "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.

 

     (iii) Collegiate athletic events.

 

     (d) "Fund" or "entertainment tax fund" means the entertainment

 

tax fund created in section 6.

 

     (e) "Qualified municipality" means a city with a population of

 

100,000 or more.

 

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

 

each entertainment event held in a qualified municipality.

 

     (2) The rate of the excise tax is 10% 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 entertainment tax 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 state treasurer shall expend money from the fund, upon

 

appropriation, as follows:

 

     (a) Seventy-five percent shall be used to fund other

 

postemployment retirement benefits for police officers and fire

 

fighters of the qualified municipality in which the entertainment

 

event took place.


     (b) Twenty-five percent shall be used to fund retirement

 

benefits for police officers and fire fighters of the qualified

 

municipality in which the entertainment event took place.