This bill amends the General Sales Tax Act of 1933 by updating the distribution of tax collections and introducing new provisions for revenue sharing. Notably, it establishes that beginning October 1, 2026, 8.9% of the collections from the 4% sales tax will be allocated to the revenue sharing trust fund, which will then be distributed to local governments. Additionally, the bill removes a provision that temporarily reduced the amount deposited into the comprehensive transportation fund by $18 million for the fiscal year ending September 30, 2021, and instead mandates that a specified percentage of fuel-related tax collections be deposited into this fund annually.

The bill also clarifies the distribution of tax revenues related to aviation fuel and computer software, ensuring that funds are allocated to the state aeronautics fund and the Michigan health initiative fund, respectively. It includes provisions for reconciling the amounts distributed based on actual collections and specifies that the balance in the state general fund can only be disbursed through legislative appropriations. Overall, the amendments aim to enhance local revenue sharing and ensure proper funding for transportation and health initiatives in Michigan.

Statutes affected:
Substitute (S-5): 205.75
Senate Introduced Bill: 205.75
As Passed by the Senate: 205.75