The proposed bill introduces a 6% excise tax on certain services in Michigan, effective January 1, 2027. It defines key terms such as "covered service," "service provider," and "purchaser," while exempting services already subject to existing sales or use tax laws. Service providers with a nexus in Michigan are responsible for collecting the tax, whereas those without nexus must ensure that purchasers remit the tax. The bill also requires service providers to register with the Department of Treasury and establishes penalties for non-compliance.

Furthermore, the bill creates a Property Tax Savings Reimbursement Fund, managed by the state treasurer, which will receive all collected excise tax revenues. The Department of Treasury is responsible for administering the fund and distributing amounts to the state school aid fund and municipalities based on specific criteria. The bill mandates annual adjustments to distribution amounts based on the Consumer Price Index, capped at 3%, and prioritizes payments to the state school aid fund in case of insufficient funds. The bill's enactment is contingent upon the passage of several other specified bills from the 103rd Legislature.