The bill amends the Use Tax Act of 1937 by updating Section 21, which outlines the distribution of funds collected under the act. It specifies that all money received must be deposited into the state treasury for the general fund, with certain collections, such as those from a 2% use tax approved by voters in 1994, directed to the state school aid fund. Additionally, the bill introduces a new requirement for the distribution of funds collected from aviation fuel taxes, allocating 35% to the state aeronautics fund and 65% to the qualified airport fund, both of which must be used for specific authorized purposes.

Furthermore, the bill repeals Section 4cc of the Use Tax Act, which previously required reporting on revenue lost due to exemptions related to data center equipment. The amendments also clarify the definitions of terms such as "aviation fuel," "qualified airport," and "state aeronautics fund," ensuring that the language aligns with existing aeronautics code. Overall, the bill aims to streamline the allocation of tax revenues while ensuring that funds are appropriately directed to support education and aviation infrastructure in Michigan.

Statutes affected:
House Introduced Bill: 205.111, 205.94