Budget & Taxes

in committee · Michigan · House Aug 20, 2025

HB 4771: Economic development: other; certain funds directed to SOAR or CIP; require to be returned to the general fund. Amends secs. 88s & 88t of 1984 PA 270 (MCL 125.2088s & 125.2088t). TIE BAR WITH: HB 4773'25

HB 4771 requires that funds designated for Michigan's Critical Industry Program (CIP) or Strategic Outreach and Attraction Reserve (SOAR) must be returned to the state's general fund if not used for qualifying economic development projects. The bill amends the Michigan Strategic Fund Act to mandate this return, ensuring unspent funds are available for broader state budget priorities rather than remaining in program-specific accounts. This affects the Michigan Strategic Fund, which administers these programs, and applies when projects are canceled, delayed, or not commenced as planned. The change does not alter the program's eligibility criteria but adds a requirement for returning unused funds within 90 days of notification.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates return of unspent CIP/SOAR funds to general fund, promoting fiscal responsibility by reallocating unused budget resources to broader state priorities.90% confidence

Sub-Topics State Budget

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in committee · Michigan · House May 21, 2025

HB 4038: Insurance: other; allocation of revenue under the insurance provider assessment act; modify. Amends sec. 13 of 2018 PA 175 (MCL 550.1763). TIE BAR WITH: HB 4037'25

HB 4038 amends Michigan's Insurance Provider Assessment Act to redirect funds collected from insurance companies. It specifies that money must be used for: (1) paying Medicaid managed care organizations up to $14 million annually for capitation rates; (2) offsetting lost revenue from health insurance claims assessments ($315 million for 2018-19, $240 million for 2019-20); and (3) funding a health data utility with $6 million in 2026, increasing to $8 million annually starting in 2028 (adjusted for inflation via the Consumer Price Index). The bill ensures these funds remain in a dedicated account and do not lapse to the general fund. This directly affects Medicaid providers, the state treasury, and the health data utility managing public health information.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects insurance assessment revenue to fund Medicaid capitation ($14M/year) and health data utility ($6M-$8M), directly allocating existing funds to public health programs and fiscal management.90% confidence ✓ HealthcareSupports HealthcareRedirects insurance assessment funds to Medicaid capitation ($14M/yr), offset health insurance revenue loss, and funds health data utility ($6M-$8M), directly advancing healthcare funding and infrastructure.95% confidence

Sub-Topics Public Health

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in committee · Michigan · Senate May 1, 2025

SB 280: Vehicles: registration; recreation passport fee; make mandatory. Amends sec. 805 of 1949 PA 300 (MCL 257.805). TIE BAR WITH: SB 281'25

Senate Bill 280 proposes to amend the Michigan vehicle code to make the recreation passport fee mandatory for all vehicle owners during the registration process. This means that instead of being an optional add-on, the fee would be automatically included when renewing or obtaining vehicle registration. The bill directly affects individuals who register vehicles in Michigan by changing how the recreation passport fee is collected.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates recreation passport fee as mandatory registration fee, directly funding state parks through consistent revenue stream.90% confidence

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in committee · Michigan · Senate Jun 17, 2025

SB 425: Higher education: community colleges; remission of new jobs credit from withholding to community college districts; clarify application to professional employer organizations. Amends secs. 161 & 163 of 1966 PA 331 (MCL 389.161 & 389.163). TIE BAR WITH: SB 426'25

SB 425 redirects payroll withholdings from employers toward community college job training programs. It clarifies that professional employer organizations (PEOs) can participate in the program, requiring employers to pay new job withholdings directly to community colleges (instead of the state) to fund training. The bill defines a "new job" as one paying at least the local living wage standard (ALICE rate), not replacing existing roles, and creating net new employment. This affects employers (including PEOs), community colleges, and workers in qualifying new positions, with funds used for training programs and bond financing.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects payroll withholdings to fund community college job training programs, directly allocating existing tax revenue to public education services.95% confidence ✓ EducationSupports EducationRedirects employer payroll withholdings to fund community college job training programs, increasing direct funding for higher education workforce development.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRedirects payroll withholdings to community college job training programs, requires new jobs pay ALICE living wage, and defines 'new job' to create net employment opportunities.85% confidence

Sub-Topics Higher Education Minimum Wage Workforce Development

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in committee · Michigan · House Sep 17, 2025

HB 4952: Use tax: distribution; distribution of money to the local government reimbursement fund; modify. Amends sec. 21 of 1937 PA 94 (MCL 205.111).

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).

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects 35% and 65% of aviation fuel tax revenue to aeronautics/airport funds and mandates $75M/$25M annual deposits to local government reimbursement fund, increasing public infrastructure funding.90% confidence ✓ TransportationSupports TransportationDirects aviation fuel tax revenue to airport funds (transportation infrastructure) and mandates annual deposits to local government reimbursement fund, supporting transportation infrastructure funding.95% confidence

Sub-Topics Revenue Airports

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in committee · Michigan · House Sep 17, 2025

HB 4957: State finance: bonds; tobacco settlement funds; modify. Amends sec. 7 of 2000 PA 489 (MCL 12.257).

This bill amends Michigan's trust fund law to redirect specific tobacco settlement funds into two state accounts. It requires $75 million annually (2008-2026) from tobacco settlement revenue (excluding funds designated as "TSR") to be deposited into the 21st Century Jobs Trust Fund, and $17.5 million annually (2015-2035) into a countercyclical budget stabilization fund. The bill clarifies that interest earned on these funds must go to the general fund, while unused principal remains in the designated trust funds at year-end. This directly affects state budgeting by changing how tobacco settlement revenue is allocated across state funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects tobacco settlement funds to job and stabilization funds, promoting fiscal responsibility and targeted program funding per bill's allocation requirements.85% confidence

Sub-Topics State Budget

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in committee · Michigan · House Sep 18, 2025

HB 4979: Use tax: collections; application of use tax to advertising services; provide for. Amends secs. 3 & 21 of 1937 PA 94 (MCL 205.93 & 205.111) & adds sec. 3g.

HB 4979 amends Michigan's Use Tax Act to apply the 6% use tax to advertising services, which were previously exempt. This change directly affects businesses that provide advertising services within Michigan, requiring them to collect and remit the tax on these services. The bill adds a new section (3g) specifying that advertising services now fall under the use tax, aligning them with other taxable services previously covered under the law. The tax would be calculated based on the price of the advertising service, consistent with existing use tax rates for other services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base by applying 6% use tax to previously exempt advertising services, generating additional state revenue through closed tax loophole.95% confidence

Sub-Topics Sales Tax

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passed · Michigan · Senate Apr 21, 2026

SB 553: Economic development: tax increment financing; water resource improvement authorities; modify. Amends secs. 703, 705 & 710 of 2018 PA 57 (MCL 125.4703 et seq.).

SB 553 amends Michigan's tax increment financing (TIF) law to allow municipalities to fund water resource improvements using TIF revenues. It specifically adds projects like lake management, shoreline protection, stormwater systems, invasive species control, and public access to inland lakes or rivers to the list of eligible TIF activities. Municipalities can now create authorities within designated "water resource improvement districts" (areas near lakes, rivers, or harbors) to finance these projects through captured tax revenues. The bill clarifies definitions for terms like "water resource improvement" and "water resource improvement district" to ensure TIF funds are properly applied to environmental and public access enhancements.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands TIF use to fund water resource infrastructure, enabling local spending on essential public projects via existing tax increment revenues.95% confidence ✓ EnvironmentSupports EnvironmentBill explicitly funds water resource projects including shoreline protection, invasive species control, and stormwater systems via TIF, advancing environmental conservation and pollution control.95% confidence

Sub-Topics Tax Incentives Coastal & Flood Protection Water Quality Tags Economic Development

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in committee · Michigan · Senate Sep 18, 2025

SB 558: Economic development: Michigan strategic fund; aerospace and defense incentive program; create and administer. Amends title & secs. 7 & 9 of 1984 PA 270 (MCL 125.2007 & 125.2009) & adds sec. 88v.

SB 558 creates a new aerospace and defense incentive program under Michigan's Strategic Fund, directly affecting businesses in those sectors. The bill amends existing law to allow the Strategic Fund to certify eligible investments for tax credits and provide financial incentives like grants or loans to support aerospace and defense companies. Key provisions include authorizing the fund to administer this program, certify investments for tax credit purposes, and make targeted financial assistance to eligible businesses. This change modifies the Strategic Fund Act to expand its existing economic development tools specifically for the aerospace and defense industry.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for aerospace/defense businesses via Strategic Fund, directly providing tax relief under state budget/tax framework.95% confidence ✓ TechnologySupports TechnologyProvides tax credits and financial incentives for aerospace/defense companies, directly supporting technology sector development through economic development funding.85% confidence

Sub-Topics Tax Incentives

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passed · Michigan · Senate Sep 26, 2025

SB 575: Local government: financing; certain filing fees; modify. Amends secs. 303 & 319 of 2001 PA 34 (MCL 141.2303 & 141.2319).

SB 575 amends Michigan's Revised Municipal Finance Act to simplify how cities, towns, and counties issue municipal bonds without needing department approval. It modifies Section 303 to require municipalities to file an annual audit report and a qualifying statement confirming they meet specific financial health standards - such as no recent debt defaults, timely tax payments, compliance with debt limits, and proper audit filings - before self-issuing securities. If the department doesn't reject the qualifying statement within 30 business days, the municipality may proceed with bond issuance without further review. This change directly affects local governments seeking to finance projects like infrastructure or services, reducing administrative hurdles for financially stable communities.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires financial health standards for local bond issuance, promoting fiscal responsibility through audit and debt compliance checks.90% confidence

Sub-Topics Audits & Accountability Debt & Bonds Tags Local Government

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