The bill amends the Income Tax Act of 1967, specifically section 695, to revise the distribution of revenue collected from the tax levied under this part. It stipulates that, starting from the 2022-2023 state fiscal year through the 2024-2025 state fiscal year, the revenue must be allocated in a specific order: first, up to $1.2 billion to the general fund; second, up to $50 million to the Michigan housing and community development fund; third, up to $50 million to the revitalization and placemaking fund; fourth, up to $500 million to the strategic outreach and attraction reserve fund; and finally, any remaining revenue to the general fund. For the 2025-2026 state fiscal year, the bill mandates that $50 million be allocated to the Michigan housing and community development fund, with the remaining revenue going to the general fund.

Additionally, starting with the 2026-2027 state fiscal year, the bill requires that $50 million be allocated to the Michigan housing and community development fund, followed by up to $60 million to the beverage container handling fund, which will be adjusted annually for inflation. The bill also defines the "United States Consumer Price Index" for clarity in future adjustments. The enactment of this amendatory act is contingent upon the approval of Senate Bill No. 416 and a majority vote from the state's electors in the general election on November 3, 2026.

Statutes affected:
Senate Introduced Bill: 206.695