Sales tax: distribution; distribution of sales tax revenue for the revenue sharing trust fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 0559'25, SB 0912'26
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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 modifies the distribution of Michigan sales tax revenue. It directs 8.6% of collected sales tax to a new revenue sharing trust fund, which will then distribute funds to cities, villages, townships, and counties. The bill also outlines specific allocations to the state school aid fund, the comprehensive transportation fund, and other funds like the state aeronautics fund and qualified airport fund, with adjustments for certain fuel types and exemptions.
Key provisions
- 8.6% of sales tax collected will be deposited into a new revenue sharing trust fund.
- Funds will be distributed to cities, villages, townships, and counties through the revenue sharing trust fund.
- 15% of sales tax on motor vehicle fuel will be distributed to local governments under the Glenn Steil state revenue sharing act.
- 60% of sales tax on motor vehicle fuel will be deposited into the state school aid fund.
- Specific allocations are made for aviation fuel tax revenue to the state aeronautics fund and qualified airport fund.
- Revenue lost due to specific exemptions (computer software, data center equipment) will be added to the state school aid fund.
- A portion of sales tax on computer software will be deposited into the Michigan Health Initiative Fund.
- The bill requires reconciliation of distributions to ensure accuracy.
Who is affected
- Cities
Bill text
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