House Bill 4342 amends Michigan's state revenue sharing act, introducing a new condition for withholding state funds from local governments. Beginning October 1, 2025, the state treasurer would withhold all revenue sharing payments from any city, village, township, or county. This would occur if the local government enacts or enforces a law, ordinance, policy, or rule that violates the "local government sanctuary policy prohibition act" or the "county law enforcement protection act." Payments would be withheld for as long as the violating policy remains in effect. This bill is tied to the enactment of House Bills 4338 and 4339.
HB 4741 modifies Michigan's property tax law by ending certain programs that reduced delinquent tax payments or prevented foreclosure. It adds a $175 fee for properties forfeited to county treasurers due to unpaid taxes (after 12+ months delinquent), changes interest calculations for residential properties under foreclosure avoidance agreements, and updates redemption rules. Homeowners with delinquent taxes, particularly those in residential properties covered by existing tax foreclosure avoidance agreements, will be directly affected by these changes. The bill sunsets specific programs that previously offered payment reductions, requiring property owners to pay full delinquent amounts plus fees to avoid losing their homes.
SB 557 creates tax credits for businesses in Michigan's designated aerospace defense zones. It offers a 30% credit on qualifying research and development expenses (capped at $10 million per business annually) and a 20% credit on storage/maintenance costs for finished goods inventory (capped at $1 million per business annually). To qualify, businesses must be designated by the Michigan Strategic Fund as defense contractors, aerospace manufacturers, or tiered suppliers with under $5 million in annual revenue. The credits require certification from the Strategic Fund, have annual spending limits ($100 million for R&D credits, $25 million for inventory credits), and cannot be claimed on the same expenses as other credits. This bill directly affects small-to-midsize aerospace and defense businesses operating within designated zones in Michigan.
HB 5084 proposes to eliminate Michigan's $6.30 per barrel tax on beer. This bill would remove the existing tax requirement for brewers, brewpubs, and wholesalers under the Liquor Control Code. The change would directly affect beer manufacturers and distributors who currently pay this tax on beer sold in Michigan. The bill focuses solely on removing the tax rate and related collection mechanisms, without adding new provisions or exemptions.
HB 5088 limits annual state funding for Michigan community colleges and higher education to $1.324 billion from the state school aid fund, starting in fiscal year 2026. This directly affects community colleges and public universities that receive state funding through the school aid program. The bill creates a hard cap on these appropriations, requiring that any amount exceeding the limit be covered by general fund money instead of the school aid fund. This policy change explicitly restricts how state education funds can be allocated, with no additional policy effects described in the bill text.
HB 5129 updates Michigan's sales tax law to exempt purchases of investment coins and bullion from tax. It expands the definition of "bullion" to include gold, silver, or platinum films/leafs (50%+ metal content) used as currency (but not legal tender) starting January 1, 2026, while maintaining the 90% purity standard for other bullion. This directly affects buyers of these specific precious metal products, including new film-based items, by removing sales tax. The bill requires passage of companion bill HB 5130 to take effect.
This bill amends Michigan's property tax credit rules by clarifying the definition of "homestead" for eligibility. It specifies that unoccupied leased land isn't considered part of a homestead unless adjacent to the owner's home, and sets rules for agricultural land (10+ years of residence includes all adjacent land; less than 10 years limits to 5 acres). It also defines mobile home park space rent as homestead rent and clarifies how "gross rent" is calculated for renters. These changes directly affect homeowners and renters claiming the property tax credit under Michigan's Income Tax Act.
HB 4120 exempts certain aircraft purchases and maintenance from Michigan's use tax. It applies to domestic air carriers using aircraft over 6,000 pounds for cargo, passenger, or combined transport, and to parts/materials affixed to such aircraft under specific conditions (e.g., aircraft not based in Michigan). The bill also exempts temporary aircraft in Michigan for maintenance or sales if they leave within 15 days, and extends tax exemptions to interstate trucking equipment used across state lines. These changes reduce tax burdens for airlines, aircraft maintenance providers, and interstate trucking companies operating in Michigan.
This bill (HB 4182) amends Michigan's use tax law to add a new exemption for motor fuel sales. It specifically creates a new section (4gg) in the law to exempt certain motor fuel transactions from use tax. The bill directly affects businesses selling motor fuel, potentially reducing their tax burden on qualifying sales. However, the provided context does not specify the exact scope of the exemption or who qualifies for it, so the summary cannot detail the precise mechanisms or affected parties beyond the general tax exemption for motor fuel.
HB 4180 removes the sales tax requirement for motor fuel sales in Michigan by amending the state tax code. It directly affects gas stations and fuel retailers by exempting motor fuel transactions from the standard sales tax. The bill creates a new tax exemption provision (Section 4gg) in the tax code, specifically excluding motor fuel sales from taxable transactions. This change became effective immediately upon the Governor's approval on October 7, 2025.
