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 stipulates that 15% of the 4% sales tax collections will be distributed to cities, villages, and townships according to the Glenn Steil state revenue sharing act, with the relevant legal reference updated. Additionally, it mandates that for fiscal years ending before October 1, 2025, the department will reconcile amounts distributed from aviation fuel sales tax collections and make necessary adjustments for future distributions. The bill also introduces new provisions for the allocation of funds to the state school aid fund and local governments, including a guaranteed deposit of $755 million into the school aid fund and $95 million distributed to local governments starting in the fiscal year ending September 30, 2026.

Furthermore, the bill specifies that the funds deposited into the Michigan health initiative fund from computer software sales tax must not fall below $9 million or exceed $12 million annually. It also clarifies the definitions of various terms related to aviation fuel and transportation funds. 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