The bill amends the General Sales Tax Act of 1933, specifically section 25, to update the distribution of sales tax revenues. It mandates that all money collected under this act be deposited into the state treasury, with specific allocations outlined for various funds. Notably, 15% of the collections from the 4% sales tax will be distributed to local municipalities under the Glenn Steil state revenue sharing act. Additionally, 60% of the collections will go to the state school aid fund, and a new provision requires that starting in the fiscal year ending September 30, 2025, $75 million of the 4% tax be allocated to the public safety and violence prevention fund.

Further changes include the establishment of a reconciliation process for tax collections related to aviation fuel, ensuring that funds are appropriately distributed to the state aeronautics fund and the qualified airport fund. The bill also specifies that collections from the sale of computer software will be directed to the Michigan health initiative fund, with a minimum annual deposit of $9 million. The language of the bill includes various insertions and deletions to clarify the distribution mechanisms and ensure compliance with existing laws.

Statutes affected:
House Introduced Bill: 205.75