The bill amends the Use Tax Act of 1937 by updating sections 3 and 21 and adding a new section 3g, establishing a specific tax rate of 6% on the use, storage, or consumption of tangible personal property and services, which now includes advertising services. It clarifies the tax implications for individuals converting tax-exempt property to taxable use and outlines the collection process for various property types, including vehicles and manufactured housing. Additionally, the bill modifies the definitions of family members for tax exemptions and specifies that service providers are responsible for collecting the tax on advertising services.

Moreover, the bill addresses the distribution of tax revenues, mandating that 65% of the tax collected at a rate of 2% on aviation fuel usage be deposited into the qualified airport fund, which is restricted for use under the aeronautics code of Michigan. Starting from the fiscal year ending September 30, 2024, $75,000,000 from the state share of collected funds must be allocated to the local government reimbursement fund. The bill also introduces new definitions and clarifications regarding terms such as "Michigan transportation fund," "qualified airport," and "qualified airport fund," while deleting some existing definitions. It requires the state treasurer or their designee to provide an annual reconciliation report to qualified airport operators, ensuring transparency in fund distribution while adhering to confidentiality restrictions.

Statutes affected:
House Introduced Bill: 205.93, 205.111