The 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 is tasked with directing the investment of the fund, and any unspent money at the end of a fiscal year will remain in the trust fund rather than lapse into 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 amounts designated for cities, villages, and townships, as well as counties, regardless of eligibility criteria. The distribution will be based on various calculations, including taxable value payments, unit type population payments, and yield equalization payments. The bill also includes provisions for proration of payments if the fund balance is insufficient and mandates that distributions occur on specified dates. Furthermore, the bill stipulates that the governor and state budget director must include appropriations for the trust fund in future budgets.

Statutes affected:
Senate Introduced Bill: 12.251, 12.262