This bill amends the General Sales Tax Act of 1933 by updating Section 25, which outlines the distribution of funds collected from the sales tax. Key changes include the introduction of a new provision that mandates $75 million of the tax revenue collected at a 4% rate to be deposited into the public safety and violence prevention fund starting in the fiscal year ending September 30, 2025. Additionally, the bill clarifies the distribution of funds from the sales tax on aviation fuel, specifying that 35% will go to the state aeronautics fund and 65% to the qualified airport fund.

The bill also makes several adjustments to existing language, such as changing "pursuant to" to "under" in the context of revenue sharing with local governments, and ensuring that the balance in the state general fund must be disbursed only through legislative appropriation. Other provisions include the requirement for annual reconciliation of distributed amounts and the establishment of minimum and maximum thresholds for funds deposited into the Michigan health initiative fund. Overall, these amendments aim to enhance the allocation of sales tax revenues for public safety, transportation, and health initiatives in Michigan.

Statutes affected:
House Introduced Bill: 205.75