The bill amends the Use Tax Act of 1937 by modifying Section 21, which outlines the distribution of funds collected under the act. It specifies that all money received must be deposited into the state treasury for the general fund, with collections from a specific 2% use tax rate directed to the state school aid fund. Notably, the bill introduces a new provision requiring the state treasurer to transfer $10 million annually 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 removes several previous requirements regarding the calculation of revenue lost to the state school aid fund due to exemptions under various tax acts. It establishes a new allocation of $75 million from the state share to the local government reimbursement fund beginning with the fiscal year ending September 30, 2024. The bill also clarifies the definitions of terms related to aviation fuel and qualified airports, ensuring that funds are appropriately allocated for aeronautics purposes. The enactment of this bill is contingent upon the passage of Senate Bill No. 357.

Statutes affected:
Senate Introduced Bill: 205.111