This bill amends the Michigan Trust Fund Act by updating its title and adding new sections to establish a Revenue Sharing Trust Fund. The new legal language specifies that the Revenue Sharing Trust Fund will be created within the Department of Treasury, consisting of funds deposited as required by the general sales tax act, donations, and investment earnings. The state treasurer is tasked with directing the investment of this fund, and any unspent money at the end of the fiscal year will remain in the trust fund rather than reverting to the general fund.

Additionally, the bill outlines the distribution of funds from the Revenue Sharing Trust Fund starting October 1, 2025. It mandates specific allocations to cities, villages, and townships, including a guaranteed amount regardless of eligibility criteria, and further distributions based on taxable value, population, and yield equalization payments. The bill also includes provisions for proration of payments if the fund balance is insufficient and stipulates that distributions must occur on designated business days. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 12.252