Sales tax: distribution; disposition of money received and collected; revise. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 0358'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill revises how Michigan’s sales tax revenue is distributed. It directs a portion of the tax revenue to various state funds, including the state school aid fund, comprehensive transportation fund, and state aeronautics fund. Specifically, it outlines how funds are allocated for fuels, motor vehicles, aviation fuel, and computer software sales, as well as addressing revenue lost due to specific exemptions and exclusions. The bill is contingent on the passage of Senate Bill 358.
Key provisions
- 15% of sales tax revenue from a 4% sales rate will be distributed to cities, villages, and townships under the Glenn Steil state revenue sharing act.
- 60% of sales tax revenue from a 4% sales rate will be deposited into the state school aid fund.
- 27.9% of sales tax revenue from fuel sales, motor vehicle sales, and motor vehicle parts sales will be deposited into the comprehensive transportation fund.
- Revenue from the sale of aviation fuel at a 2% rate will be split between the state aeronautics fund (35%) and the qualified airport fund (65%).
- Revenue from the sale of computer software at a 4% rate will be deposited into the Michigan Health Initiative Fund.
- Revenue lost due to specific exemptions (4a(1)(u) and 4ee) and exclusions (1(1)(d)(xv)) will be deposited into the state school aid fund.
- The state treasurer will annually reconcile distributions and make adjustments to ensure accuracy.
- The bill requires a transfer of $50,000,000 from the general fund to the state school aid fund, adjusted annually for the Consumer Price Index.
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