§ 18-11-3. Imposition; amount; basis.

(a)

Subject to the exclusions, adjustments and exemptions herein provided, a city utility users tax set in increments of one-fourth (¼) of one per cent, which shall not exceed five (5) per cent for the hiring and retention of police officers, is hereby imposed on and shall be paid by the utility user.

(b)

The first forty-five million dollars ($45,000,000.00) of revenue generated from this tax shall be used exclusively to retain and hire police officers.

(c)

If the amount of revenue collected in a fiscal year is in excess of forty-five million dollars ($45,000,000.00) and if the amount of excess funds collected equals or exceeds five (5) per cent of forty-five million dollars ($45,000,000.00), the city shall comply with one of the following:

(1)

The rate of tax imposed for the following fiscal year shall be lowered in decrements of one-four (¼) of one per cent for each full five (5) per cent collected in excess of forty-five million dollars ($45,000,000.00). By August first of a fiscal year following a fiscal year in which the amount of revenue collected was in excess of forty-five million dollars ($45,000,000.00), the city shall notify by certified mail each collector of the tax subject to this article and the state revenue commissioner of the rate of tax to be applied. The rate shall become effective for bills issued beginning October first of a fiscal year following a fiscal year in which the amount of revenue collected was in excess of forty-five million dollars ($45,000,000.00). If the tax expires, and adjustment shall not be made for an excess or deficiency in collections for a fiscal year or other period not already adjusted pursuant to this section.

(2)

The amount collected in excess of forty-five million dollars ($45,000,000.00) shall be used exclusively to hire and retain additional police officers over the level of police officers employed on November 1, 1984. The hiring and retaining of additional police shall be limited to police officers, investigators, and police sergeants. The city shall not intentionally lay off any police officers in anticipation of rehiring the officers with the additional revenue from this tax nor shall the general fund contribution towards the police budget be reduced from the prior year.

If the city fails to comply with subsection (1) or (2) by August 1, 1985 or any fiscal year following a fiscal year in which the amount of revenue is in excess of forty-five million dollars ($45,00,000.00), the state revenue commissioner shall implement the provisions of subsection (c)(1).

(d)

This tax shall be measured by the amounts paid, not including any existing or hereafter enacted taxes (including, but not limited to, federal state, city and other local taxes, directly added to or directly passed on in the users' billing) paid by users for the public utility services as hereinafter provided, billed or ordinarily billable to locations within the taxing city:

(1)

The tax shall be imposed on all intrastate telephone communication services, furnished by a public utility. The term "intrastate telephone communication services" shall not include any telephone service originating or terminating outside the state, telephone services by coin-operated installations, directory advertising proceeds, telephone services not taxable under section 4251 of Title 26 of the United States Code as of December 31, 1969, as amended, centrex and multiline key switching systems, mobile telephone service and any types of services or equipment, furnished by telephone companies subject to public utility regulation, during any period in which such services or equipment are in competition with services or equipment furnished by or available from persons other than telephone companies subject to public utility regulation.

(2)

The tax shall be on all electrical energy and steam provided by a public utility or a resale customer. The term "electrical energy and steam provided" shall include amounts paid for metered energy and steam, and minimum charges for service, including user charges, service charges, demand charges, standby charges and annual and monthly charges. The term shall not include electrical energy or steam sold to or exchanged with for resale by another public utility, or used or consumed in the conduct of the business of an electric or steam public utility or a combination gas and electric utility.

(3)

The tax shall be on all gas, natural or artificial, provided by a public utility or a resale customer. The term "gas, natural or artificial, provided" shall not include any gas sold for use in the generation of electrical energy by a public utility, any gas sold to or exchanged with for resale by, another gas public utility, or any gas used or consumed in the conduct of the business of a gas public utility or a combination gas and electric utility.

(Code 1964, § 21-11-3; Ord. No. 325-H, § 1, 5-14-79; Ord. No. 332-H, § 1, 7-5-79; Ord. No. 458-H, § 1, 7-19-81; Ord. No. 607-H, § 1, 12-12-84)

State law reference

Similar provision, MCL 141.823, MSA 5.3194(323).