The bill amends the Michigan Trust Fund Act by establishing a local government reimbursement fund within the state treasury. The state treasurer is tasked with depositing funds received from the use tax act and other sources into this new fund, directing its investments, and crediting interest and earnings back to the fund. A significant change in the bill is that money in the fund at the end of the fiscal year will now lapse to the general fund, as opposed to remaining in the fund as previously stated.

Additionally, the bill outlines that the Department of Treasury will administer the fund and is responsible for compensating municipalities for revenue lost due to property tax exemptions. Compensation must occur annually by May 31, starting in 2024, and if the fund lacks sufficient resources, payments will be prorated among the municipalities affected. The bill also clarifies definitions related to the fund and municipalities, ensuring proper understanding and implementation of the provisions.

Statutes affected:
House Introduced Bill: 12.253