Bill > SB0357

This bill amends the General Sales Tax Act to modify how sales tax revenues are distributed across various state funds, with several key changes. Beginning in fiscal year 2026, the state treasurer will transfer $50 million from the general fund to the state school aid fund annually, with subsequent years' transfers adjusted for inflation based on the Consumer Price Index. The bill removes specific provisions about revenue lost from certain tax exemptions and replaces them with a more streamlined approach to calculating school aid fund contributions. The bill maintains existing distribution rules for sales tax, including allocating 15% to cities, villages, and townships, 60% to the state school aid fund, and a portion to transportation and aeronautics funds. The bill also continues existing provisions about distributing taxes from specific sectors like motor vehicle sales and aviation fuel. Importantly, the bill is contingent on the passage of a companion bill (Senate Bill 358), meaning it will only take effect if that related legislation is also enacted into law. The changes are primarily technical in nature and focus on refining the state's tax revenue allocation processes.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0357