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 provisions include the requirement that all collected funds be deposited into the state treasury, with specific allocations: 15% to local municipalities, 60% to the state school aid fund, and a designated percentage of fuel tax collections to the comprehensive transportation fund. Notably, the bill introduces a new requirement for the distribution of tax collections from aviation fuel sales, allocating 35% to the state aeronautics fund and 65% to the qualified airport fund, both of which must be used for specific authorized purposes.

Additionally, the bill repeals Section 4ee of the General Sales Tax Act, which previously provided an exemption that affected revenue to the state school aid fund. The amendments also clarify the process for reconciling tax collections and distributions, ensuring that adjustments are made annually based on actual collections. Overall, the bill aims to streamline the allocation of sales tax revenues while ensuring that critical funds for education and transportation are maintained.

Statutes affected:
House Introduced Bill: 205.75, 205.54