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.