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.
SB 118 creates a tax credit for Michigan taxpayers with qualifying dependents. It allows a credit equal to the state's "target foundation allowance" (from school funding law) for each dependent aged 5-18 who isn't enrolled in public school and has demonstrated grade-level reading/math proficiency through state or private tests. The credit reduces tax liability, and any excess amount is refunded to the taxpayer. This directly affects families with children meeting these specific educational and enrollment criteria.
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.
SB 151 reduces Michigan's individual income tax rate from 4.25% to 3.9%, effective January 1, 2025. This change applies to all individual taxpayers filing Michigan income tax returns under the current tax code. The bill amends Section 51 of the 1967 Income Tax Act to establish this new rate for tax years beginning on or after January 1, 2025. It does not alter other provisions of the tax code, such as school aid fund deposits or agricultural preservation fund allocations.
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 4232 creates the Public Safety and Violence Prevention Fund within Michigan’s trust fund system, directly affecting cities, villages, and townships that receive funding. The fund is financed by general sales tax deposits, donations, and investment earnings, with money remaining in the fund year-to-year instead of lapsing. Key provisions require 6.5% of fund revenues to be distributed to cities/towns for community violence prevention grants (administered by DHHS), while 2% goes to the Crime Victim’s Rights Fund; remaining funds are distributed proportionally but reduced if jurisdictions fail to meet violent crime rate reduction targets (1% by 2028-2030, 2% after). The bill strictly prohibits using funds for tactical police vehicles (>15,000 lbs), facial recognition technology, or replacing existing public safety resources.
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.
SB 185 is a supplemental budget bill that allocates additional state funding for Michigan departments, agencies, and branches of government (including the judiciary and legislature) for the 2025 fiscal year. It establishes specific conditions for how these funds can be spent and outlines rules for their expenditure. This bill directly affects state government operations by providing supplemental financial resources for ongoing services and programs. As a procedural budget measure, it does not create new policies or impact citizens directly.
SB 186 allocates $17.77 billion for K-12 public schools and $462 million for Michigan community colleges in fiscal year 2025-2026. It specifies funding sources including the state school aid fund, general fund, and dedicated trust funds, with community colleges receiving detailed per-institution allocations for operations and performance funding. The bill establishes a schedule of 11 equal installments for distributing school aid payments to districts, with funds to be paid monthly from October through August. This legislation directly affects all Michigan public school districts and community colleges by authorizing their state funding for the upcoming fiscal year.
HB 4247 creates a 50% state income tax credit for Michigan taxpayers who donate cash or food to qualifying charities providing overnight shelter, food, or meals to indigent individuals (defined as households earning under 140% of the federal poverty level). The credit is capped at $100 for single filers ($200 for joint returns) or 10% of tax liability (max $5,000) for estates/trusts. To claim the credit, donors must receive a written acknowledgment from the charity verifying its mission, tax-deductibility under federal law, and compliance with civil rights laws. The bill requires the state tax department to report annual credit claims to legislative committees.
