SB 561 Michigan Senate · 2025-2026 Regular Session

Sales tax: distribution; distribution of sales tax revenue for the revenue sharing trust fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 0559'25, SB 0912'26

SB 561 amends Michigan's sales tax law to change how revenue is distributed. It allocates 8.6% of the 4% general sales tax (starting October 1, 2025) to a new Revenue Sharing Trust Fund for distribution to cities, villages, townships, and counties. The bill also directs computer software sales tax revenue ($9-12 million annually) to the Michigan Health Initiative Fund and splits aviation fuel tax revenue (35% to the state aeronautics fund, 65% to airport funds). These changes affect local governments, public schools (via school aid fund allocations), airports, and health programs, without altering the overall tax rates.

Bill status passed 3 of 5 stages cleared

Introduction

Sep 2025

Committee Review

Apr 2026

Senate Passage

Apr 2026

House Passage

Governor

Introduced Sep 18, 2025 Last action Apr 30, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

As Passed by the Senate → Substitute (S-5) · 1 edit

MINOR

The bill underwent minor formatting adjustments and metadata updates, including changes to the title alignment and the revision tracking codes at the bottom of the page. No substantive policy changes, funding amounts, or legal requirements were altered.

TECHNICAL

Adjusted the indentation and spacing of the bill title and the revision tracking codes (KAS numbers) at the end of the document.

Floor votes · Senate Apr 30, 2026

How they voted

38–0

Passed

Total votes 38

Apr 30, 2026

D Democratic19

19 Yea

100% Yea

R Republican19

19 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 30, 2026

Committee

referred to Committee on Appropriations

lower

Apr 30, 2026

Introduced

received on 04/30/2026

lower

Apr 30, 2026

Upper · Passed

PASSED ROLL CALL # 84 YEAS 37 NAYS 0 EXCUSED 0 NOT VOTING 0

upper

Apr 28, 2026

Upper · Passed

SUBSTITUTE (S-5) CONCURRED IN

upper

Apr 28, 2026

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-5)

upper

Apr 28, 2026

Committee

REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-5)

upper

Apr 28, 2026

Upper · Passed

COMMITTEE RECOMMENDED IMMEDIATE EFFECT

upper

Apr 28, 2026

Upper · Passed

REPORTED FAVORABLY WITH SUBSTITUTE (S-5) 4/23/2026

upper

Sep 18, 2025

Committee

REFERRED TO COMMITTEE ON APPROPRIATIONS

upper

Sep 18, 2025

Introduced

INTRODUCED BY SENATOR JOHN CHERRY

upper

1 primary · 2 co-sponsors