Use tax: distribution; disposition of money received and collected; revise. Amends sec. 21 of 1937 PA 94 (MCL 205.111). TIE BAR WITH: SB 0357'25
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill revises how Michigan’s use tax revenue is distributed. It directs money collected under the use tax to various state funds, including the state school aid fund, with specific allocations for lost revenue from certain tax exemptions and a growing annual transfer to the state school aid fund. Additionally, it outlines the distribution of use tax revenue from aviation fuel, allocating funds to the state aeronautics fund and the qualified airport fund. Finally, it establishes a dedicated fund for local government reimbursement.
Key provisions
- Money collected from the 2% use tax on electors approved in 1994 is deposited in the state school aid fund.
- Revenue lost due to personal property exemptions is directed to the state school aid fund.
- An annual transfer of $10,000,000 from the general fund to the state school aid fund begins in fiscal year 2026, adjusted for inflation.
- Revenue from aviation fuel use tax is split: 35% to the state aeronautics fund and 65% to the qualified airport fund.
- A dedicated fund, the local government reimbursement fund, receives $75,000,000 annually starting fiscal year 2024.
- The department of treasury must reconcile revenue distribution with actual collections annually.
- Data center equipment purchases for exemption claims require detailed reporting to the department.
- Local community stabilization share is not state funds and is deposited directly with the relevant authority.
Who is affected
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