Bill > SB0358

This bill amends Michigan's Use Tax Act to modify how tax revenues are distributed, primarily focusing on transfers to the state school aid fund. Starting in fiscal year 2026, the bill requires the state treasurer to transfer $16 million from the general fund to the state school aid fund annually, with an adjustment mechanism tied to the Consumer Price Index to account for inflation. The bill removes several previous provisions related to revenue losses from various property tax exemptions and replaces them with this fixed annual transfer. The bill also eliminates the detailed accounting of specific revenue losses and replaces it with a straightforward annual transfer. Importantly, the bill is tied to the passage of Senate Bill 357, meaning it will only take effect if that companion bill is also enacted into law. The transfer amount will be adjusted annually based on the United States Consumer Price Index for urban consumers, with a floor of zero if the index shows a negative change, ensuring the transfer amount does not decrease during deflationary periods.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0358