The bill amends the Use Tax Act of 1937, specifically section 21, to modify the distribution of funds collected under the act. It stipulates that all money received must be deposited into the state treasury for the general fund, with specific provisions for the use tax collections at an additional rate of 2% approved by voters in 1994, which must be allocated to the state school aid fund. Notably, the bill removes previous requirements for depositing certain lost revenue amounts into the state school aid fund due to exemptions under various tax acts. Instead, it introduces a new provision that mandates 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 outlines the distribution of funds collected from the use of aviation fuel, specifying that 35% will go to the state aeronautics fund and 65% to the qualified airport fund. It also establishes a requirement for the state treasurer to deposit $75 million into the local government reimbursement fund starting in the fiscal year ending September 30, 2024. The enactment of this bill is contingent upon the passage of Senate Bill No. 357 from the 103rd Legislature.

Statutes affected:
Senate Introduced Bill: 205.111