Bill > SB0559

This bill establishes a new Revenue Sharing Trust Fund beginning October 1, 2025, which will collect money from sales tax revenues, donations, and investment earnings. The state treasurer will manage the fund, and any unspent money will remain in the fund at the end of each fiscal year. The bill outlines a complex distribution mechanism for sharing these funds among cities, villages, townships, and counties, with multiple calculation methods for allocating money. The distribution includes a base allocation of $299,126,400 to cities, villages, and townships, and $261,069,700 to counties, with additional funds distributed based on complex formulas considering factors like taxable value, population, and local service provisions. The remaining funds will be distributed in three equal parts: taxable value payments, unit type population payments, and yield equalization payments. The bill includes provisions for prorating payments if fund balances are insufficient and requires the governor to include these fund transfers in annual budget submissions. Importantly, the bill is tied to the passage of two related Senate bills (SB 560 and SB 561) and will only take effect if those bills are also enacted into law.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0559