HB 4952 amends Michigan's Use Tax Act to change how 2% tax revenue from aviation fuel is distributed. It directs 35% of this tax to the state aeronautics fund and 65% to the qualified airport fund for airport-related expenses. The bill also mandates annual deposits into the local government reimbursement fund: $75 million starting fiscal year 2024-25, then $25 million annually after 2025-26. These changes affect schools (through school aid fund provisions), airports (via fund allocations), and local governments (receiving reimbursements).
HB 5099 modifies how funds in Michigan's convention facility development fund are distributed. It directs specific annual payments to metropolitan authorities operating convention facilities (including $7 million for 2020-2021 due to COVID-19 impacts), establishes a formula for distributing liquor tax revenue to counties based on convention hotel presence, and allocates up to $4 million for one-time grants to publicly owned convention centers negatively affected by the pandemic. The bill also specifies funding for street railway operations and sets reporting requirements for grant recipients. These changes affect convention facilities, local governments, and tourism-related infrastructure funded through this dedicated tax revenue stream.
HB 4951 creates a new tax on marijuana sales to fund state road infrastructure projects. It directly affects marijuana businesses (which pay the tax) and state transportation budgets (which receive the revenue). The key mechanism establishes a dedicated funding stream, redirecting tax revenue from cannabis sales toward repairing and maintaining roads, rather than general state funds. The bill became law immediately upon the Governor's approval on October 7, 2025.
HB 4121 prohibits local governments (counties, cities, townships, villages) from adopting property tax caps that automatically reduce tax rates when revenue hits a fixed dollar limit. It voids any existing local tax cap with this automatic reduction feature and requires local units to disregard such caps. The bill specifically targets caps imposed by local charter, ordinance, or policy - not state-mandated limits - making them unenforceable. This change ensures local tax revenue limits cannot trigger automatic rate cuts based solely on annual dollar amounts.
HB 4144 increases Michigan's corporate income tax rate from 6% to 8.5% effective January 1, 2025, affecting corporations operating in the state. It directs a specific portion of the revenue increase - specifically, the amount attributable to the 2.5% rate hike - to the state school aid fund starting with the 2025-2026 fiscal year. The bill also allocates other portions of the tax revenue to housing, community development, and revitalization funds during the 2022-2025 fiscal years. This is a direct policy change altering tax rates and revenue distribution, not a procedural or commemorative measure.
HB 4210 amends Michigan's sales tax distribution rules to adjust funding for the Comprehensive Transportation Fund. It changes the percentage of sales tax revenue from car-related purchases (fuels, vehicles, parts/accessories sold by dealers/gas stations) allocated to this fund: 27.9% until September 2025, 60% for fiscal year 2025-2026, then 25% annually starting October 2026. The bill also maintains existing allocations for school aid (60%), city revenue sharing (15%), and specifies that 35% of aviation fuel tax revenue goes to the State Aeronautics Fund while 65% funds qualified airports. These changes directly affect businesses selling vehicles, fuel, and parts, and govern how transportation funding is structured.
HB 4231 redirects $75 million annually from Michigan's 4% general sales tax (starting fiscal year 2025) into the Public Safety and Violence Prevention Fund. It also specifies that aviation fuel tax revenue must be split 35% to the state aeronautics fund and 65% to qualified airport funds. Additionally, computer software sales tax revenue must fund Michigan's health initiatives at $9-12 million yearly. These changes directly affect state budget allocations, airport operators, and public safety programs without altering tax rates or creating new taxes.
HB 4170 permanently sets Michigan's individual income tax rate at 4.05% for all taxpayers, replacing a temporary 4.25% rate scheduled to take effect in 2024. It creates a mechanism where the rate could decrease further if state revenue growth exceeds inflation, requiring annual revenue reviews. The bill directly affects all Michigan residents who pay individual income tax. The change takes effect immediately for tax years beginning January 1, 2025, with the 4.05% rate now permanent unless triggered by the revenue growth condition.
HB 4312 amends Michigan's sales tax distribution by directing 8.62% of the 4% general sales tax revenue to the Revenue Sharing Trust Fund starting October 1, 2025, with funds distributed to cities, villages, townships, and counties. It maintains existing allocations for aviation fuel tax (35% to the state aeronautics fund, 65% to qualified airport funds) and sets a minimum $9 million annual deposit from computer software sales tax into the Michigan Health Initiative Fund. The bill also clarifies adjustments for school aid fund revenue losses due to specific tax exemptions. These changes directly affect local governments, airports, and health programs through revised tax revenue streams.
This bill proposes a constitutional amendment to Michigan's budget rules (Article IX, Section 28), directly affecting how the state sets annual spending limits. It replaces current spending caps with a new formula tying budget growth to inflation, population changes, and voter-approved revenue increases. Any state revenue exceeding this calculated limit must be refunded to taxpayers via law. The amendment modifies how the legislature calculates yearly spending authority, requiring excess funds to flow back to citizens rather than remaining in the state budget.
