Bill Summary – FastDemocracy

SENATE BILL NO. 1194
     December 05, 2024, Introduced by Senators MOSS and SINGH and referred to the Committee on
       Government Operations.
          A bill to amend 2019 PA 152, entitled
    "Lawful internet gaming act,"
    by amending sections 14 and 15 (MCL 432.314 and 432.315).
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 14. (1) Except for an internet gaming operator that is an
 Indian tribe, an internet gaming operator is subject to a graduated
 tax on the adjusted gross receipts received each calendar year by
 the internet gaming operator from all internet gaming it conducts
 under this act as set forth below:
       (a) For adjusted gross receipts less than $4,000,000.00, a tax
 of 20%.21%.
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       (b) For adjusted gross receipts of $4,000,000.00 or more but
 less than $8,000,000.00, a tax of 22%.23%.
       (c) For adjusted gross receipts of $8,000,000.00 or more but
 less than $10,000,000.00, a tax of 24%.25%.
       (d) For adjusted gross receipts of $10,000,000.00 or more but
 less than $12,000,000.00, a tax of 26%.27%.
       (e) For adjusted gross receipts of $12,000,000.00 or more,
 28%.29%.
       (2) An internet gaming operator that is an Indian tribe is
 subject to the payment requirements under section 7(1)(f).
       (3) An internet gaming operator shall pay the tax or payment,
 as applicable, under subsection (1) or (2) on a monthly basis. The
 payment for each monthly accounting period is due on the tenth day
 of the following month.
       (4) Except as provided in this act and section 12(17) of the
 Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, an
 internet gaming operator is not subject to any excise tax, license
 tax, privilege tax, occupation tax, or other tax, payment, or fee
 imposed exclusively on an internet gaming operator or internet
 gaming operators by this state or any political subdivision of this
 state, except as provided in this act. This subsection does not
 impair the contractual rights under an existing development
 agreement between a city and an internet gaming operator that holds
 a casino license under the Michigan Gaming Control and Revenue Act,
 1996 IL 1, MCL 432.201 to 432.226.
       (5) In addition to payment of the tax and other fees as
 provided in this act, and to any payment required pursuant to an
 existing development agreement described in subsection (4), if a
 city has imposed a municipal services fee equal to 1.25% on a
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 casino licensee, the city shall charge a 1.25% fee on the adjusted
 gross receipts of an internet gaming operator that holds a casino
 license under the Michigan Gaming Control and Revenue Act, 1996 IL
 1, MCL 432.201 to 432.226, whose casino is in that city.
       Sec. 15. (1) The tax imposed under section 14 must be
 allocated as follows:
       (a) Thirty percent to the city in which the internet gaming
 operator licensee's casino is located, for use in connection with
 the following:
       (i) The hiring, training, and deployment of street patrol
 officers in that city.
       (ii) Neighborhood development programs designed to create jobs
 in that city with a focus on blighted neighborhoods.
       (iii) Public safety programs such as emergency medical services,
 fire department programs, and street lighting in that city.
       (iv) Anti-gang and youth development programs in that city.
       (v) Other programs that are designed to contribute to the
 improvement of the quality of life in that city.
       (vi) Relief to the taxpayers of the city from 1 or more taxes
 or fees imposed by the city.
       (vii) The costs of capital improvements in that city.
       (viii) Road repairs and improvements in that city.
       (b) Sixty-five Sixty-four point five percent to this state to
 be deposited in the fund.
       (c) Five point five percent to the Michigan agriculture equine
 industry development fund created under section 20 of the horse
 racing law of 1995, 1995 PA 279, MCL 431.320. However, if the 5%
 5.5% allocated under this subdivision to the Michigan agriculture
 equine industry development fund created under section 20 of the
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 horse racing law of 1995, 1995 PA 279, MCL 431.320, exceeds
 $3,000,000.00 in a fiscal year, the amount in excess of
 $3,000,000.00 must be allocated and deposited in the fund created
 under section 16.
       (2) By September 30, 2020 and each September 30 after that
 date, if the combined amount of money received in the preceding
 city fiscal year by the city in which the internet gaming
 operator's casino is located from money allocated under subsection
 (1)(a), from the wagering tax allocated under section 12 of the
 Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212,
 from the wagering tax allocated under section 15 of the lawful
 sports betting act, 2019 PA 149, MCL 432.415, and all payments
 received under existing development agreements with internet gaming
 operators, is less than $183,000,000.00, the board shall distribute
 from the fund to the city in which the internet gaming operator's
 casino is located an amount equal to the difference between
 $183,000,000.00 and the combined amount of money the city in which
 the internet gaming operator's casino is located received in the
 preceding fiscal year from money allocated under subsection (1)(a),
 from the wagering tax allocated under section 12 of the Michigan
 Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, from the
 wagering tax allocated under section 15 of the lawful sports
 betting act, 2019 PA 149, MCL 432.415, and all payments received by
 the city under existing development agreements with internet gaming
 operators. The calculations set forth in this subsection must not
 include any payments made under section 14(5) or any payments made
 under section 13(1) of the Michigan Gaming Control and Revenue Act,
 1996 IL 1, MCL 432.213, or any payments made under section 14(5) of
 the lawful sports betting act, 2019 PA 149, MCL 432.414. However,
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 the total amount the city in which the internet gaming operator's
 casino is located receives for the preceding fiscal year under
 subsection (1)(a) and this subsection must not be more than 55% of
 the total received from the tax imposed under section 14 in the
 state fiscal year.
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Statutes affected: 
Senate Introduced Bill: 432.314, 432.315