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, with specific allocations: 15% to cities, villages, and townships as per the Glenn Steil state revenue sharing act, 60% to the state school aid fund, and a designated percentage of fuel tax collections to the comprehensive transportation fund. Additionally, it establishes a new 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.

The bill also clarifies the distribution of tax collections from aviation fuel sales, specifying that 35% will go to the state aeronautics fund and 65% to the qualified airport fund. It includes provisions for annual reconciliation of these distributions and ensures that funds deposited into the Michigan health initiative fund from computer software sales will not fall below $9 million or exceed $12 million annually. The amendments aim to enhance funding for local governments, education, transportation, and health initiatives while ensuring accountability in the distribution of tax revenues.

Statutes affected:
Senate Introduced Bill: 205.75