Bill > HB5087

This bill modifies the disbursement of tobacco tax proceeds in Michigan, changing how revenue from cigarette and tobacco product taxes is allocated across various state funds and purposes. Specifically, the bill redirects $3 million annually from the Michigan State Capitol Historic Site Fund to the Healthy Michigan Fund for smoking prevention programs, and requires the state treasurer to adjust this amount annually based on the Consumer Price Index. The bill eliminates reporting requirements related to the State Capitol maintenance plan and removes several detailed reporting provisions. The bill maintains the existing structure of distributing tobacco tax revenues, which includes allocations to the state school aid fund (41.62%), the Healthy Michigan Fund (3.75%), the Michigan Medicaid Benefits Trust Fund (31.875% for cigarette taxes and 75% for other tobacco product taxes), and the state general fund. The bill also continues to allow a small percentage (0.555%) to be paid to counties with populations over 2 million for indigent health care. The changes primarily involve technical language modifications and minor fund redirection, with an emphasis on supporting smoking prevention and health-related programs.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5087