The Michigan Department of Treasury reports that liquor tax distributions to counties will decline to $49.88 million in fiscal 2016, from $73.75 million in fiscal 2015.
The 4 percent liquor tax that gets distributed to counties across the state is set to expire at the end of 2015. Back in 2008, the Legislature refinanced the Cobo Hall facility in Detroit and extended the liquor tax. As part of that package of bills, counties would still receive the liquor tax, but would be limited to receiving only that amount that was collected in their county. Currently the liquor taxes collected in Oakland, Macomb and Wayne counties are distributed to the rest of the counties. In essence, the liquor taxes collected in those three counties have subsidized the amounts to the rest of the state. In FY 2015, those 80 counties are receiving approximately 200 percent of the liquor taxes actually paid in their jurisdictions.
For FY16, Treasury says, “The 80 ‘out-state’ counties will receive 101 percent of the FY 15 liquor tax collections in their county. Macomb, Oakland, and Wayne share 101 percent of the FY 15 liquor tax collections in the three counties, which is estimated to be a slight increase compared to their estimated FY 15 distribution. Macomb and Oakland counties get a portion of the liquor taxes collected in Detroit.”
To see the county-by-county figures, click here.
The Michigan Department of Treasury reports that liquor tax distributions to counties will decline to $49.88 million in fiscal 2016, from $73.75 million in fiscal 2015.
The 4 percent liquor tax that gets distributed to counties across the state is set to expire at the end of 2015. Back in 2008, the Legislature refinanced the Cobo Hall facility in Detroit and extended the liquor tax. As part of that package of bills, counties would still receive the liquor tax, but would be limited to receiving only that amount that was collected in their county. Currently the liquor taxes collected in Oakland, Macomb and Wayne counties are distributed to the rest of the counties. In essence, the liquor taxes collected in those three counties have subsidized the amounts to the rest of the state. In FY 2015, those 80 counties are receiving approximately 200 percent of the liquor taxes actually paid in their jurisdictions.
For FY16, Treasury says, “The 80 ‘out-state’ counties will receive 101 percent of the FY 15 liquor tax collections in their county. Macomb, Oakland, and Wayne share 101 percent of the FY 15 liquor tax collections in the three counties, which is estimated to be a slight increase compared to their estimated FY 15 distribution. Macomb and Oakland counties get a portion of the liquor taxes collected in Detroit.”
To see the county-by-county figures, click here.
MAC committees on the environment and economic development are tackling some intriguing issues in their sessions on April 17.
The Economic Committee will be looking at the value of altering state law on hotel/motel taxes. The Citizens Research Council of Michigan has produced a handy one-page summary of what current law allows.
The Environmental Committee will hear from Krystle Sacavage of the Pennsylvania Public Utility Commission about that state’s regulations and “impact fees” on hydraulic fracturing, or “fracking.”
If you are a commissioner interested in serving on one of MAC’s committees (Environmental and Regulatory Affairs; Economic Development and Taxation; Judiciary and Public Safety; Health and Human Services; and Transportation) contact Casey Steffee at steffee@micounties.org for an application and more information.
Bosworth
MAC’s Deena Bosworth lays out the counties’ position on the need for tax-capture reform in this story from Port Huron on the workings of downtown development authorities in St. Clair County:
“These are unelected officials that are spending money on whatever they see fit … It should not be up to an unelected board to capture however much tax money they want and use it however they see fit.”
Tax-capture reform will be a priority for MAC in the 2015 legislative session. As always, please be sure to share with us your local experiences and input via email to melot@micounties.org. The more data and experience we can provide lawmakers, the more powerful our lobbying effort becomes.
For more background on tax-capture laws and MAC’s position them, review this briefing paper. (Please note you must be a registered member of the MAC website to access MAC briefing papers and other key documents. Be sure to register today at http://www.micounties.org/index.php/private-site/login?view=registration)
While 2014 has been an outstanding year for MAC legislative initiatives (full revenue sharing funding, Cunningham court funding crisis averted), there always are debates that don’t play out so well. Which, of course, means a redoubling of our efforts in the coming legislative term.
This week, legislation to extend county authority to merge road commissions (House Bills 5117-18) was put on the shelf, meaning that the authority will expire on Dec. 31. We are disappointed in this result, but will look to address the issue again in the new legislative term.
Legislation altering the rules on tax increment financing, or “tax capture,” districts also stalled this fall.
We have been working throughout this legislative session on revisions to the TIF law, principally to ensure that counties always have the option on whether to have millage dollars captured by TIF districts, the length of time of that capture and the ability to partner with the authorities by having a seat at the table. The legislation sponsored by Rep. Eileen Kowall (R-Oakland), however, eventually was written in such a way that no real reform would result.
We expect to have new legislation filed early next year to incorporate the provisions for county authority and more reforms.
As always, the best way to stay on top of county issues at the Capitol is by being a subscriber to MAC’s weekly Legislative Update. If you are not receiving the updates, send a request and your email address to melot@micounties.org.
The Presque Isle power plant is at the center of a regulatory dispute that could impose huge new energy costs on Upper Peninsula residents.
Some hopeful news for the holidays for Upper Peninsula residents:
“The Federal Energy Regulatory Commission has ordered hearing and settlement procedures on MISO’s proposed cost allocation for the Presque Isle Power Plant, which would cause steep rate increases for residents in Michigan’s Upper Peninsula.”
No hearing date has been set yet.
