The bill amends the 1967 PA 281 to adjust tax rates and allocate funds for various purposes, specifically focusing on income tax for individuals and the establishment of the Renew Michigan Fund and the Revitalization and Placemaking Fund. It introduces a new provision that allows for a reduction in the income tax rate based on the percentage increase in general fund revenue compared to the inflation rate, starting from tax years beginning January 1, 2023. Additionally, it specifies that a portion of the tax revenue will be directed to the state school aid fund and outlines the distribution of funds for environmental protection, waste management, and recycling initiatives through the Renew Michigan Fund.

The bill also establishes the Revitalization and Placemaking Fund, which will be used to support projects aimed at population and tax revenue growth through the rehabilitation of vacant properties and the development of public spaces. The Michigan Strategic Fund is designated as the administrator of this fund, and it is required to report annually on the fund's revenue and expenditures. Overall, the bill aims to enhance fiscal management and promote environmental and community development initiatives in Michigan.

Statutes affected:
Substitute (H-1): 206.623, 206.695, 206.51
Substitute (S-3): 206.51
House Introduced Bill: 206.623, 206.695, 206.51
As Passed by the House: 206.623, 206.695, 206.51
As Passed by the Senate: 206.51
House Concurred Bill: 206.51
Public Act: 206.51
House Enrolled Bill: 206.51