The bill amends the General Sales Tax Act of 1933, specifically section 25, to update the distribution of sales tax revenues. It mandates that all money collected under this act be deposited into the state treasury, with specific allocations outlined for various funds. Notably, 15% of the collections from the 4% sales tax will be distributed to local municipalities, while 60% will go to the state school aid fund. Additionally, a new provision is introduced that requires a portion of the tax collected from motor vehicle-related sales to be deposited into the comprehensive transportation fund, with a specific reduction for the fiscal year ending September 30, 2021.

Furthermore, the bill establishes a new requirement for the deposit of tax revenues into the game and fish protection account, which will be credited to specific subaccounts for pheasants and cold-water fish, starting in the 2025-2026 fiscal year. Other adjustments include the reconciliation of amounts distributed from aviation fuel sales and the establishment of minimum and maximum funding levels for the Michigan health initiative fund. The bill also clarifies definitions related to aviation fuel and various funds involved in the distribution of sales tax revenues.

Statutes affected:
Senate Introduced Bill: 205.75