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 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, the bill introduces a new provision that from October 1, 2025, through September 30, 2026, at least 60% of 25% of the sales tax collections on motor vehicle fuels and related sales must be deposited into the comprehensive transportation fund. Furthermore, beginning October 1, 2026, this percentage will be set at 25% of the collections for the same categories.

Additionally, the bill outlines the distribution of tax revenues from aviation fuel sales, requiring a portion to be allocated to the state aeronautics fund and the qualified airport fund. It also stipulates that the department must reconcile the amounts distributed annually based on actual collections. The bill includes provisions to ensure that the funds deposited into the Michigan health initiative fund from computer software sales are maintained within specified limits. Overall, the amendments aim to enhance funding for transportation and education while ensuring proper allocation and accountability of tax revenues.

Statutes affected:
House Introduced Bill: 205.75