The proposed bill amends the Michigan Trust Fund Act by establishing a new Revenue Sharing Trust Fund within the Department of Treasury, effective October 1, 2025. This fund will consist of money deposited as required by the General Sales Tax Act, donations from any source, and interest from investments. The state treasurer will oversee the investment of the fund, and any unspent money at the end of the fiscal year will remain in the trust fund rather than reverting to the general fund.

Additionally, the bill outlines the distribution of funds from the Revenue Sharing Trust Fund to cities, villages, townships, and counties. A total of $299,126,400 will be allocated to local governments, with specific distribution methods based on population and taxable value. The bill also includes provisions for proration of payments if the fund balance is insufficient and mandates that distributions occur on designated business days. Furthermore, it stipulates that the governor and state budget director must include appropriations for the fund in future budgets, ensuring ongoing support for local governments.

Statutes affected:
Senate Introduced Bill: 12.251, 12.262