The bill amends the existing law regarding the creation and management of the local government reimbursement fund in Michigan. It establishes the fund within the state treasury, directing the state treasurer to deposit money received from the use tax act and other sources into this fund. The treasurer is also responsible for investing the fund's assets and ensuring that any interest or earnings are credited back to the fund. Importantly, any unspent money in the fund at the end of the fiscal year will lapse into the general fund, and the Department of Treasury is designated as the administrator for audits of the fund.

Additionally, the bill outlines the process for compensating municipalities that have lost revenue due to property tax exemptions. The Department of Treasury is required to compensate these municipalities by May 31 each year, based on the revenue lost in the previous property tax year. If the fund does not have enough money to fully compensate all affected municipalities, the payments will be prorated. The bill also clarifies the definitions of "fund" and "municipality" as they pertain to this legislation.

Statutes affected:
Senate Introduced Bill: 12.253
As Passed by the Senate: 12.253
As Passed by the House: 12.253
Public Act: 12.253