Bill > HB4960

This bill amends the Michigan Trust Fund Act by modifying the rules for the Local Government Reimbursement Fund. Currently, unspent money in the fund remains in the fund at the end of the fiscal year, but under this bill, any unspent funds will now lapse (transfer) to the general fund. The fund is designed to compensate municipalities for revenue lost due to specific property tax exemptions. The state treasurer will continue to deposit money into the fund from sources like use tax, and the Department of Treasury will administer the fund. Each year by May 31, the Department of Treasury will calculate and distribute compensation to municipalities for their lost property tax revenue. If the fund lacks sufficient money to fully compensate all municipalities, the payments will be prorated (proportionally reduced). The bill defines "municipality" using an existing definition from the local community stabilization authority act, ensuring a consistent legal interpretation. The primary purpose remains supporting local governments by reimbursing them for specific revenue losses.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4960