The 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 the deposit of 1.5% of the collections from the 4% sales tax into the public safety and violence prevention fund starting in the 2025-2026 fiscal year. Additionally, the bill modifies the existing distribution percentages for various funds, including the comprehensive transportation fund and the Michigan health initiative fund, while also clarifying the definitions of terms related to aviation fuel and transportation funds.

Furthermore, the bill specifies that the balance in the state general fund can only be disbursed through appropriations made by the legislature. It also includes a reconciliation process for the amounts distributed under the amended subsections, ensuring that adjustments are made based on actual collections. The enactment of this bill is contingent upon the passage of House Bill No. 4261.

Statutes affected:
House Introduced Bill: 205.75