Bill > HB4311

This bill establishes a new Revenue Sharing Trust Fund beginning October 1, 2025, which will change how state funds are distributed to local governments. The trust fund will be created in the state treasury and can receive money from sales tax deposits, donations, and investment earnings. The bill outlines a complex formula for distributing funds to cities, villages, townships, and counties that includes three main types of payments: taxable value payments, unit type population payments, and yield equalization payments. Each payment type uses a different calculation method that considers factors like population, taxable value, local tax efforts, and the type of municipal unit. The initial distribution includes a base amount of $299,126,400 for cities, villages, and townships, and $261,069,700 for counties, with additional funds to be distributed using the detailed formulas. The bill ensures that if the trust fund balance is insufficient, payments will be prorated, and distributions will be made on specific dates throughout the year. Importantly, the bill requires that the governor and state budget director include an appropriation for these trust fund transfers in each annual budget after September 30, 2025.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4311