The bill amends the General Sales Tax Act of 1933, specifically section 25, to update the distribution of sales tax revenues collected under the act. Key changes include the introduction of a new provision that mandates 8.62% of the collections from the 4% sales tax to be deposited into the revenue sharing trust fund starting October 1, 2025, which will then be distributed to local governments. 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.

Other notable amendments include the requirement that the balance in the state general fund must be disbursed only through appropriations by the legislature, and the introduction of a new section that outlines the revenue lost to the state school aid fund due to specific exemptions. The bill also updates definitions related to aviation fuel and various funds associated with transportation and education. Overall, these changes aim to enhance the clarity and efficiency of tax revenue distribution in Michigan.

Statutes affected:
House Introduced Bill: 205.75