The bill amends the General Sales Tax Act of 1933, specifically section 25, to update the distribution of sales tax revenues collected under the act. It mandates that all money received must be deposited into the state treasury, with specific allocations for cities, villages, and townships, as well as the state school aid fund. Notably, 15% of the collections from the 4% tax rate will be distributed to local governments according to the Glenn Steil state revenue sharing act, and 60% of the collections will go to the state school aid fund. Additionally, the bill introduces a new provision that requires $755 million of the collections to be deposited into the state school aid fund for the fiscal year ending September 30, 2026, and each year thereafter.

Furthermore, the bill outlines the distribution of tax revenues from aviation fuel sales, specifying that 35% will go to the state aeronautics fund and 65% to the qualified airport fund. It also includes provisions for reconciling the amounts distributed based on actual collections and mandates annual reporting to qualified airports. The bill establishes a new requirement for an additional $95 million to be distributed to local governments on a per capita basis starting in the fiscal year ending September 30, 2026. The enactment of this bill is contingent upon the passage of several other specified bills in the 103rd Legislature.

Statutes affected:
Substitute (H-2): 205.75
House Introduced Bill: 205.75
As Passed by the House: 205.75