The bill amends the General Sales Tax Act of 1933, specifically section 25, to adjust the distribution of sales tax revenues collected under the act. It stipulates that all money received must be deposited into the state treasury, with 15% allocated to local municipalities as per the Glenn Steil state revenue sharing act. The bill also outlines that 60% of the collections from a 4% sales tax on motor vehicle-related sales must be deposited into the state school aid fund, with additional provisions for the distribution of funds from an additional 2% tax approved by voters in 1994.

Significantly, the bill introduces new provisions regarding the allocation of sales tax revenues from motor vehicle fuels and sales. From October 1, 2025, it mandates that 60% of 25% of these collections be deposited into the comprehensive transportation fund, increasing to 25% of the collections starting October 1, 2026. Additionally, the bill includes measures for reconciling aviation fuel tax collections and their distribution to the state aeronautics fund and qualified airport fund. It also ensures that funds deposited into the Michigan health initiative fund from computer software sales tax are maintained within specified limits.

Statutes affected:
House Introduced Bill: 205.75