| 1 | 1 | | SENATE BILL NO. 1148 A bill to allow qualified municipalities to impose a ticket enhancement fee on the admission charge to an entertainment event in this state; to limit the rate of the ticket enhancement fee; to provide for the establishment of procedures for the collection, administration, distribution, and enforcement of the ticket enhancement fee; to provide for the powers and duties of certain state and local governmental officers and entities; to provide for certain exemptions; to provide for certain remedies, sanctions, and penalties; and to allow the promulgation of rules. the people of the state of michigan enact: Sec. 1. This act may be cited as the "ticket enhancement fee act". Sec. 3. As used in this act: (a) "Admission charge" means the actual charge, excluding memberships, paid for an individual to attend the entertainment event. (b) "Affiliate" means an affiliated person as that term is defined in section 5a of the use tax act, MCL 205.95a. (c) "Department" means the department of treasury. (d) "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) 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. (e) "Entertainment provider" means a person that sells admission to an entertainment event. (f) "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. (iv) An event held at a venue with a capacity of 500 individuals or fewer. (g) "Marketplace entertainment provider" means an entertainment provider that makes retail sales through a physical or electronic marketplace operated by a marketplace facilitator. (h) "Marketplace facilitator" means a person that meets the requirements of subparagraph (i), but does not include a person described in subparagraph (ii): (i) A person is a marketplace facilitator if the person facilitates a retail sale by a marketplace entertainment provider by doing both of the following: (A) Listing or advertising for sale by the marketplace entertainment provider in a marketplace admittance to an entertainment event. (B) Either directly or indirectly through agreements or arrangements with third parties or its affiliates collecting payment from the customer and transmitting that payment to the marketplace entertainment provider for consideration. (ii) Marketplace facilitator does not include a person that operates a platform or forum that provides internet, print, electronic, or any other form of advertising services, including listing admission to an entertainment event for sale, if the person does not also engage directly or indirectly, through 1 or more affiliates, in the activities described in subparagraph (i). (i) "Ordinance" means an ordinance adopted under this act to levy, assess, and collect a ticket enhancement fee. (j) "Qualified municipality" means a city, village, or township. (k) "Ticket enhancement fee" means the ticket enhancement fee levied by a qualified municipality under this act. (l) "Use tax" means the tax imposed under the use tax act. (m) "Use tax act" means the use tax act, 1937 PA 94, MCL 205.91 to 205.111. Sec. 5. (1) Subject to subsection (3) and section 7, the governing body of a qualified municipality, by ordinance, may levy, assess, and collect a ticket enhancement fee on the admission charge of each entertainment event held in the qualified municipality. (2) An ordinance may be amended or repealed in the same manner as the ordinance was adopted. (3) The rate of the ticket enhancement fee must not exceed $3.00 per admission charge. A ticket enhancement fee must not be imposed on an admission charge that is $30.00 or less. Sec. 7. (1) An ordinance must contain all of the following: (a) Subject to subsection (2), the effective date of the ordinance. (b) Subject to section 5(3), the rate of the ticket enhancement fee to be imposed. (c) A provision that the ticket enhancement fee will be remitted to the department in the same manner as the use tax and will be administered and collected by the department as described in the use tax act and 1941 PA 122, MCL 205.1 to 205.31. (2) An ordinance must not take effect before the first day of the month following the expiration of 60 days after the enactment of the ordinance under section 5(1). Sec. 9. (1) The governing body of a qualified municipality and the state treasurer shall enter into an agreement providing that the ticket enhancement fee will be remitted to the department in the same manner as the use tax and will be administered and collected by the department as described in the use tax act and 1941 PA 122, MCL 205.1 to 205.31. (2) The department shall administer and collect the ticket enhancement fee on behalf of the qualified municipality. The ticket enhancement fees, interest, and penalties collected by the department under the agreement described in subsection (1) must be deposited in the state treasury and credited to a restricted account for the benefit of the qualified municipality that imposed the ticket enhancement fee. Not later than 30 days after their due date, the department shall remit the ticket enhancement fees, interest, and penalties to the qualified municipality that imposed the ticket enhancement fee. (3) Any remittance to the qualified municipality by the department after the deadline for remittance described in subsection (2) must include interest earned on the gross collections after the deadline and before transmittal to the qualified municipality, calculated on the basis of the rate of interest accrued for this period on the common cash fund of this state. (4) A qualified municipality that receives a remittance under this section must use the money only for purposes of paying the costs the qualified municipality incurs related to entertainment events held in the qualified municipality. Sec. 11. The ticket enhancement fee levied under this act is in addition to any other taxes, charges, assessments, or fees. Sec. 13. (1) Except as otherwise provided in subsection (2), the entertainment provider shall collect and remit the ticket enhancement fee. (2) If a marketplace facilitator facilitates the sale of admission to an entertainment event, the marketplace facilitator shall collect and remit the ticket enhancement fee. (3) An entertainment provider or marketplace facilitator required to collect and remit a ticket enhancement fee under this act shall register with the department and provide its name, address, and any other information the department requires for the enforcement of this act. Sec. 15. The department may promulgate rules that are necessary for the collection and administration of the ticket enhancement fee under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. |
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| 25 | 25 | | SENATE BILL NO. 1148 |
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| 26 | 26 | | |
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| 27 | 27 | | |
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| 28 | 28 | | |
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| 29 | 29 | | A bill to allow qualified municipalities to impose a ticket enhancement fee on the admission charge to an entertainment event in this state; to limit the rate of the ticket enhancement fee; to provide for the establishment of procedures for the collection, administration, distribution, and enforcement of the ticket enhancement fee; to provide for the powers and duties of certain state and local governmental officers and entities; to provide for certain exemptions; to provide for certain remedies, sanctions, and penalties; and to allow the promulgation of rules. |
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| 30 | 30 | | |
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| 31 | 31 | | the people of the state of michigan enact: |
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| 32 | 32 | | |
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| 33 | 33 | | Sec. 1. This act may be cited as the "ticket enhancement fee act". |
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| 34 | 34 | | |
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| 35 | 35 | | Sec. 3. As used in this act: |
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| 36 | 36 | | |
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| 37 | 37 | | (a) "Admission charge" means the actual charge, excluding memberships, paid for an individual to attend the entertainment event. |
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| 38 | 38 | | |
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| 39 | 39 | | (b) "Affiliate" means an affiliated person as that term is defined in section 5a of the use tax act, MCL 205.95a. |
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| 40 | 40 | | |
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| 41 | 41 | | (c) "Department" means the department of treasury. |
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| 42 | 42 | | |
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| 43 | 43 | | (d) "Entertainment event" or "event" means 1 or more of the following that is not an exempt event: |
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| 44 | 44 | | |
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| 45 | 45 | | (i) Zoo. |
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| 46 | 46 | | |
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| 47 | 47 | | (ii) Live theater. |
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| 48 | 48 | | |
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| 49 | 49 | | (iii) Museum. |
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| 50 | 50 | | |
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| 51 | 51 | | (iv) Opera. |
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| 52 | 52 | | |
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| 53 | 53 | | (v) Professional sporting event. |
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| 54 | 54 | | |
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| 55 | 55 | | (vi) Concert. |
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| 56 | 56 | | |
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| 57 | 57 | | (vii) Temporary or transient entertainment production. |
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| 58 | 58 | | |
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| 59 | 59 | | (viii) Botanical gardens. |
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| 60 | 60 | | |
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| 61 | 61 | | (ix) Amusement parks. |
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| 62 | 62 | | |
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| 63 | 63 | | (x) Temporary or transient art, music, theatrical, dance, literary, or cultural festival. |
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| 64 | 64 | | |
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| 65 | 65 | | (e) "Entertainment provider" means a person that sells admission to an entertainment event. |
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| 66 | 66 | | |
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| 67 | 67 | | (f) "Exempt event" means an event that is 1 or more of the following: |
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| 68 | 68 | | |
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| 69 | 69 | | (i) All high school, middle school, and elementary or grade school events. |
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| 70 | 70 | | |
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| 71 | 71 | | (ii) Events sponsored by a nonprofit or charitable organization. |
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| 72 | 72 | | |
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| 73 | 73 | | (iii) Collegiate athletic events. |
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| 74 | 74 | | |
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| 75 | 75 | | (iv) An event held at a venue with a capacity of 500 individuals or fewer. |
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| 76 | 76 | | |
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| 77 | 77 | | (g) "Marketplace entertainment provider" means an entertainment provider that makes retail sales through a physical or electronic marketplace operated by a marketplace facilitator. |
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| 78 | 78 | | |
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| 79 | 79 | | (h) "Marketplace facilitator" means a person that meets the requirements of subparagraph (i), but does not include a person described in subparagraph (ii): |
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| 80 | 80 | | |
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| 81 | 81 | | (i) A person is a marketplace facilitator if the person facilitates a retail sale by a marketplace entertainment provider by doing both of the following: |
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| 82 | 82 | | |
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| 83 | 83 | | (A) Listing or advertising for sale by the marketplace entertainment provider in a marketplace admittance to an entertainment event. |
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| 84 | 84 | | |
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| 85 | 85 | | (B) Either directly or indirectly through agreements or arrangements with third parties or its affiliates collecting payment from the customer and transmitting that payment to the marketplace entertainment provider for consideration. |
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| 86 | 86 | | |
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| 87 | 87 | | (ii) Marketplace facilitator does not include a person that operates a platform or forum that provides internet, print, electronic, or any other form of advertising services, including listing admission to an entertainment event for sale, if the person does not also engage directly or indirectly, through 1 or more affiliates, in the activities described in subparagraph (i). |
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| 88 | 88 | | |
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| 89 | 89 | | (i) "Ordinance" means an ordinance adopted under this act to levy, assess, and collect a ticket enhancement fee. |
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| 90 | 90 | | |
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| 91 | 91 | | (j) "Qualified municipality" means a city, village, or township. |
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| 92 | 92 | | |
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| 93 | 93 | | (k) "Ticket enhancement fee" means the ticket enhancement fee levied by a qualified municipality under this act. |
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| 94 | 94 | | |
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| 95 | 95 | | (l) "Use tax" means the tax imposed under the use tax act. |
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| 96 | 96 | | |
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| 97 | 97 | | (m) "Use tax act" means the use tax act, 1937 PA 94, MCL 205.91 to 205.111. |
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| 98 | 98 | | |
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| 99 | 99 | | Sec. 5. (1) Subject to subsection (3) and section 7, the governing body of a qualified municipality, by ordinance, may levy, assess, and collect a ticket enhancement fee on the admission charge of each entertainment event held in the qualified municipality. |
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| 100 | 100 | | |
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| 101 | 101 | | (2) An ordinance may be amended or repealed in the same manner as the ordinance was adopted. |
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| 102 | 102 | | |
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| 103 | 103 | | (3) The rate of the ticket enhancement fee must not exceed $3.00 per admission charge. A ticket enhancement fee must not be imposed on an admission charge that is $30.00 or less. |
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| 104 | 104 | | |
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| 105 | 105 | | Sec. 7. (1) An ordinance must contain all of the following: |
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| 106 | 106 | | |
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| 107 | 107 | | (a) Subject to subsection (2), the effective date of the ordinance. |
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| 108 | 108 | | |
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| 109 | 109 | | (b) Subject to section 5(3), the rate of the ticket enhancement fee to be imposed. |
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| 110 | 110 | | |
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| 111 | 111 | | (c) A provision that the ticket enhancement fee will be remitted to the department in the same manner as the use tax and will be administered and collected by the department as described in the use tax act and 1941 PA 122, MCL 205.1 to 205.31. |
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| 112 | 112 | | |
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| 113 | 113 | | (2) An ordinance must not take effect before the first day of the month following the expiration of 60 days after the enactment of the ordinance under section 5(1). |
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| 114 | 114 | | |
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| 115 | 115 | | Sec. 9. (1) The governing body of a qualified municipality and the state treasurer shall enter into an agreement providing that the ticket enhancement fee will be remitted to the department in the same manner as the use tax and will be administered and collected by the department as described in the use tax act and 1941 PA 122, MCL 205.1 to 205.31. |
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| 116 | 116 | | |
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| 117 | 117 | | (2) The department shall administer and collect the ticket enhancement fee on behalf of the qualified municipality. The ticket enhancement fees, interest, and penalties collected by the department under the agreement described in subsection (1) must be deposited in the state treasury and credited to a restricted account for the benefit of the qualified municipality that imposed the ticket enhancement fee. Not later than 30 days after their due date, the department shall remit the ticket enhancement fees, interest, and penalties to the qualified municipality that imposed the ticket enhancement fee. |
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| 118 | 118 | | |
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| 119 | 119 | | (3) Any remittance to the qualified municipality by the department after the deadline for remittance described in subsection (2) must include interest earned on the gross collections after the deadline and before transmittal to the qualified municipality, calculated on the basis of the rate of interest accrued for this period on the common cash fund of this state. |
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| 120 | 120 | | |
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| 121 | 121 | | (4) A qualified municipality that receives a remittance under this section must use the money only for purposes of paying the costs the qualified municipality incurs related to entertainment events held in the qualified municipality. |
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| 122 | 122 | | |
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| 123 | 123 | | Sec. 11. The ticket enhancement fee levied under this act is in addition to any other taxes, charges, assessments, or fees. |
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| 124 | 124 | | |
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| 125 | 125 | | Sec. 13. (1) Except as otherwise provided in subsection (2), the entertainment provider shall collect and remit the ticket enhancement fee. |
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| 126 | 126 | | |
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| 127 | 127 | | (2) If a marketplace facilitator facilitates the sale of admission to an entertainment event, the marketplace facilitator shall collect and remit the ticket enhancement fee. |
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| 128 | 128 | | |
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| 129 | 129 | | (3) An entertainment provider or marketplace facilitator required to collect and remit a ticket enhancement fee under this act shall register with the department and provide its name, address, and any other information the department requires for the enforcement of this act. |
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| 130 | 130 | | |
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| 131 | 131 | | Sec. 15. The department may promulgate rules that are necessary for the collection and administration of the ticket enhancement fee under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. |
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