Bill > SB0561

This bill amends the General Sales Tax Act to modify how sales tax revenue is distributed, primarily by creating a new provision that, beginning October 1, 2025, 8.6% of the tax collections at the 4% rate will be deposited into the Revenue Sharing Trust Fund. This fund will then distribute money to cities, villages, townships, and counties according to specific guidelines in the Michigan Trust Fund Act. The bill maintains existing distribution mechanisms for other portions of sales tax revenue, including 15% going to cities, villages, and townships through the Glenn Steil State Revenue Sharing Act, 60% being deposited in the state school aid fund, and specific allocations for transportation, aviation fuel, and computer software sales. The bill is contingent upon the passage of two related Senate Bills (SB 560 and SB 559), meaning it will only take effect if those companion bills are also enacted into law. The changes aim to adjust how sales tax revenues are allocated across various state and local government funds and purposes, with a particular focus on enhancing local government revenue sharing.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0561