The bill amends the Michigan Trust Fund Act by adding new provisions and modifying existing definitions and responsibilities. It establishes a new "revenue sharing trust fund" within the Department of Treasury, which will begin operations on October 1, 2025. The fund will consist of money 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 fund rather than reverting to the general fund.

Additionally, the bill outlines the distribution of funds from the revenue sharing trust fund to cities, villages, townships, and counties, specifying amounts and methods for allocation. A total of $299,126,400 will be distributed to local governments, with further allocations based on taxable value payments, unit type population payments, and yield equalization payments. The bill also includes provisions for proration of payments if the fund balance is insufficient and mandates that distributions occur on specific dates. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 12.252