This bill amends the General Sales Tax Act of 1933 by updating Section 25, which outlines the distribution of funds collected from the sales tax. Key changes include the introduction of a new provision that mandates 8.6% of the collections from the 4% sales tax to be deposited into the revenue sharing trust fund starting October 1, 2025, which will then be distributed to local governments. Additionally, the bill removes a previous provision that reduced the amount deposited into the comprehensive transportation fund by $18 million for the fiscal year ending September 30, 2021, and instead ensures that a specified percentage of sales tax collections on fuels and motor vehicles continues to support transportation funding.

Further amendments clarify the distribution of funds from the sales tax on aviation fuel, ensuring that 35% goes to the state aeronautics fund and 65% to the qualified airport fund. The bill also establishes that collections from the sale of computer software will be directed to the Michigan health initiative fund, with a minimum annual deposit of $9 million and a maximum of $12 million. Other provisions include the requirement for annual reconciliation of distributed amounts and the stipulation that the balance in the state general fund can only be disbursed through legislative appropriation.

Statutes affected:
Senate Introduced Bill: 205.75