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, it introduces a new provision that requires $755 million of the collections from the 4% sales tax to be deposited into the state school aid fund for the fiscal year ending September 30, 2026, and each fiscal year thereafter. Additionally, it stipulates that $95 million of the collections must be distributed to local governments on a per capita basis starting in the same fiscal year.

The bill also includes provisions for the distribution of tax revenues from aviation fuel sales, with 35% allocated to the state aeronautics fund and 65% to the qualified airport fund. It establishes a reconciliation process for the amounts distributed based on actual collections, allowing for necessary adjustments. Furthermore, it clarifies definitions related to aviation fuel and various funds involved in the distribution process. 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