SB 573 Michigan Senate · 2025-2026 Regular Session

Corporate income tax: revenue distribution; distribution of revenue; modify. Amends sec. 51 of 1967 PA 281 (MCL 206.51); adds secs. 51a & 695a & repeals secs. 51d - 51f, 51h, 476 & 695 of 1967 PA 281 (MCL 206.51d - 206.51f, 206.51h, 206.476 & 206.695).

SB 573 modifies Michigan's corporate income tax law to change how tax revenue is distributed. It revises Section 51 of the tax code, adds new Sections 51a and 695a, and removes several existing sections (51d-f, 51h, 476, 695). The bill directly affects businesses paying corporate income tax in Michigan by altering the formulas or rules for allocating tax revenue. These changes focus on updating the legal framework for revenue distribution without creating new tax rates or programs.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Sep 2025

Committee Review

Sep 2025

Senate Passage

Sep 2025

House Passage

Governor

Introduced Sep 18, 2025 Last action Sep 25, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Senate Introduced Bill → Substitute (S-2) · 4 edits

MODERATE

The bill was amended to update tax rate references, add a new section 51a, and modify how income tax revenue is deposited into the state school aid fund for specific time periods. These changes clarify the tax structure and adjust funding allocations for education and other state programs.

Scope change

The bill now references both sections 51 and 695 for amendments, and adds section 51a as a new provision, expanding the scope of amendments to the Income Tax Act.

TECHNICAL

Updated the bill's amendment language to include sections 51 and 695 instead of just section 51, and added section 51a to the list of new sections.

FISCAL

Added a new provision for October 1, 2023 through September 30, 2024, specifying that 1.015% of gross tax collections (divided by the income tax rate) shall be deposited into the state school aid fund.

Added a new subsection (4) regarding distributions to the state school aid fund, subject to limitations not fully shown in the diff.

DEFINITION

Modified the definition of 'Total general fund/general purpose revenue' to include distributions made pursuant to former section 51d or section 51a(d).

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Sep 25, 2025

Upper · Passed

SUBSTITUTE (S-2) CONCURRED IN

upper

Sep 25, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-2)

upper

Sep 25, 2025

Upper · Passed

DISCHARGE COMMITTEE APPROVED

upper

Sep 18, 2025

Committee

REFERRED TO COMMITTEE ON APPROPRIATIONS

upper

Sep 18, 2025

Introduced

INTRODUCED BY SENATOR SAM SINGH

upper

1 primary · 0 co-sponsors