The bill amends the General Sales Tax Act of 1933, specifically section 25, to include several new provisions regarding the distribution of sales tax revenues. Notably, it mandates that beginning with the 2025-2026 fiscal year, $115 million from the 4% sales tax collections must be allocated to the public safety and violence prevention fund. Additionally, it specifies that for the fiscal year ending September 30, the amount deposited into the comprehensive transportation fund will be reduced by $18 million, which will instead go to the transportation administration collection fund.

The bill also updates the language regarding the distribution of tax collections from aviation fuel sales and computer software sales, ensuring that funds are allocated to the state aeronautics fund and the Michigan health initiative fund, respectively. It clarifies the definitions of various terms related to aviation fuel and transportation funds, and it establishes a reconciliation process for the amounts distributed based on actual collections. The enactment of this bill is contingent upon the passage of House Bill No. 4261.

Statutes affected:
Substitute (H-1): 205.75
House Introduced Bill: 205.75
As Passed by the House: 205.75