MI HB5978

Establishes the "Adult Entertainment Tax Act" imposing a $3.00 per-customer excise tax on operators of adult entertainment facilities where nude or partially denuded individuals perform services.

Defines "adult entertainment facility" as businesses (nightclubs, bars, restaurants, etc.) where nude or partially denuded performers work, regardless of employee or independent contractor status.

Tax is collected using the same procedures as the use tax under the 1937 Use Tax Act and administered by the Department of Treasury's revenue division.

Facility operators may choose how to derive funds to pay the tax and are not required to impose the tax directly on customers as a separate fee.

All tax collections must be appropriated exclusively for sexual abuse counseling services in Michigan.