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. It mandates that all money received must be deposited into the state treasury for the general fund, with specific allocations for cities, villages, and townships, as well as the state school aid fund and the comprehensive transportation fund. Notably, the bill introduces a requirement for the state treasurer to transfer $50 million from the general fund to the state school aid fund starting in the fiscal year ending September 30, 2026, with adjustments based on the Consumer Price Index for subsequent years.

Additionally, the bill clarifies the distribution of tax collections from the sale of aviation fuel, specifying that 35% will go to the state aeronautics fund and 65% to the qualified airport fund. It also establishes that the funds deposited into the Michigan health initiative fund from computer software sales tax must be between $9 million and $12 million annually. The bill includes various definitions related to aviation fuel, transportation funds, and the state school aid fund, ensuring clarity in the implementation of these financial provisions.

Statutes affected:
Senate Introduced Bill: 205.75