HB 4260 redirects $115 million annually from Michigan's 4% general sales tax revenue into the Public Safety and Violence Prevention Fund starting with the 2025-2026 fiscal year. This change affects state budget allocations, shifting funds previously going to the general fund toward public safety and violence prevention programs. The bill amends Michigan's General Sales Tax Act (MCL 205.75) to establish this specific annual transfer, with the amount adjusted based on actual tax collections. It does not create new taxes but reallocates existing revenue streams.
SB 417 changes how Michigan distributes corporate income tax revenue. Starting in the 2026-2027 fiscal year, it permanently allocates $50 million annually to the Michigan housing fund and $60 million (adjusted for inflation each year) to the beverage container handling fund, after prior allocations to other state funds. The bill also specifies that remaining tax revenue after these allocations goes to the general fund. This policy directly affects state budgeting by redirecting specific portions of corporate tax revenue to these designated funds, with the beverage container fund allocation being a new, permanent feature.
SB 472 redirects specific income tax revenues toward job creation programs. It requires that portions of withholding tax collected from businesses with "certified new jobs" (new positions) or "protected jobs" (existing positions) be deposited into two dedicated funds: the "Good Jobs for Michigan Fund" and the "More Jobs for Michigan Fund." Businesses participating in Michigan's strategic job programs must now separately report the tax amounts tied to these certified jobs on their annual tax filings. This affects employers with agreements under Michigan's job creation initiatives, ensuring targeted tax revenue flows directly to support workforce development.
HB 4960 creates a dedicated "local government reimbursement fund" to hold unspent funds from specific tax sources (like use tax collections), preventing them from lapsing to the general fund. It requires the state Treasury to annually compensate municipalities for property tax revenue losses tied to certain exemptions under MCL 211.9o(2)(b) by May 31 each year. If the fund lacks sufficient money, payments to affected municipalities are reduced proportionally. This directly affects municipalities that claimed these property tax exemptions, ensuring they receive annual reimbursements from the dedicated fund.
SB 559 creates a new Revenue Sharing Trust Fund in Michigan's Department of Treasury, effective October 1, 2025. The fund will receive money from the general sales tax, donations, and investment earnings, with balances carrying over annually instead of lapsing. It mandates specific distributions: $299 million to cities, villages, and townships (based on prior eligibility regardless of new criteria), $261 million to counties (similarly based on prior eligibility), and remaining funds distributed through three formulas measuring taxable value, population type, and yield equalization. This directly affects all local governments in Michigan by changing how they receive state revenue-sharing payments.
SB 555 amends Michigan's income tax law to require that starting October 1, 2025, a minimum of $300,000 annually (or the actual fees charged for MiABLE accounts, whichever is greater) from individual income tax revenue be deposited into the MiABLE fund. This fund helps Michigan residents with disabilities save for qualified expenses without losing public benefits. The deposit amount will be adjusted yearly for inflation, but not below zero if inflation is negative. The bill directly affects MiABLE account holders and ensures dedicated funding for this disability savings program.
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.
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.
HB 5087 amends Michigan's tobacco tax revenue distribution, changing how funds from cigarette and other tobacco product taxes are allocated. The key change adds an annual inflation adjustment (based on the Consumer Price Index) to the $3 million allocated yearly to the Michigan State Capitol Historic Site Fund for maintenance and preservation projects. The bill maintains existing allocations, directing 41.62% to the state school aid fund, 31.875% to the Medicaid trust fund, 2.4375% to health and safety programs, and 0.555% to county indigent health care. These changes directly affect public schools, Medicaid services, state health programs, and Capitol building maintenance.
SB 277 redirects a portion of Michigan's sales tax revenue to the state's Game and Fish Protection Account. It amends existing law (MCL 205.75) to require that specific sales tax funds be deposited directly into this dedicated account instead of general state funds. This ensures consistent, dedicated funding for wildlife conservation and management programs, including habitat protection and fishery restoration. The bill affects state wildlife management efforts by providing a reliable revenue stream without creating new taxes.
