Bill > SB0565

This bill modifies the local government reimbursement fund, which was created to help municipalities recover property tax revenue lost due to small business tax exemptions. Specifically, the bill requires that any unused money in the fund at the end of the fiscal year will now automatically lapse (transfer) to the state's general fund, instead of remaining in the reimbursement fund. The bill maintains existing provisions that require the Department of Treasury to compensate municipalities annually by May 31st for revenue lost from small business property tax exemptions. If the fund does not have enough money to fully reimburse all municipalities, the payments will be prorated among them. The bill also defines key terms like "municipality" by referencing the local community stabilization authority act, ensuring clarity about which local governments are eligible for reimbursement. The fund is primarily supported by money from the use tax act and other sources, with the state treasurer responsible for depositing and investing the funds, and the Department of Treasury serving as the fund's administrator for audit purposes.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0565