This bill updates the rules for calculating Michigan's school foundation allowance, which determines the base funding provided to public schools. It requires the state's revenue estimating conference to use the Detroit Consumer Price Index to adjust the allowance amount, ensuring it keeps pace with local inflation rather than a statewide index. The legislation also mandates that this adjusted allowance be projected for the current fiscal year and the next two years to help plan school budgets. By tying school funding growth to inflation in the Detroit area, the bill aims to maintain the purchasing power of state aid for education.
SB 1074 modifies how state transportation funds are distributed to county road commissions in Michigan. The bill establishes specific allocation rules, requiring a portion of funds to be set aside for snow removal and engineering reimbursement, while directing the remainder toward primary and local road systems based on mileage and population metrics. Additionally, it mandates that the state and county road association create incentives for counties to form purchasing pools to improve fund efficiency. This legislation directly affects county road commissions and the local road networks they manage.
This bill directs Michigan local tax authorities to offer free, easy-to-access online tools that help prospective home buyers estimate their future property taxes. The law requires these websites to display contact details for the local assessor's office and explain how residents can appeal their property assessments, including current timelines for the process. While the bill encourages rather than mandates these services, it aims to make financial information more transparent for individuals purchasing homes in the state. The changes would take effect 180 days after the bill is officially signed into law.
Senate Bill 972 amends Michigan's Use Tax Act to clarify how trade-in values for personal electronics are treated when calculating tax liability. The bill updates existing provisions that currently limit the credit for trade-ins on motor vehicles and watercraft, extending similar rules to personal electronics. Specifically, it ensures that the value of an old electronic device traded in for a new one can be subtracted from the purchase price of the new item, reducing the amount of use tax owed. This change directly affects consumers purchasing new electronics and dealers selling them in Michigan.
This bill extends the Michigan First-Time Home Buyer Savings Program through December 31, 2026, by amending the existing law that established the program. It allows individuals to open special savings accounts designated for paying qualified costs related to purchasing a single-family home in Michigan. The program permits contributions from people other than the account holder and allows joint ownership if the account holders file a joint tax return. The bill includes a provision stating that it will not take effect unless a related bill, HB 5973, is also passed into law.
This bill establishes new rules for Michigan state information technology projects, setting a maximum duration of 36 months and a cost limit of $10 million for any single project. It requires the Department of Technology, Management, and Budget to create a monitoring system that tracks project costs, identifies overruns, and ensures all spending is accurately recorded. State agencies must report technology spending outside designated funds and cannot use specific appropriations for purposes beyond their intended systems. The bill also clarifies how work project funds lapse at the end of fiscal years and gives the director authority to close unused accounts with oversight from appropriations committees.
This bill amends Michigan's sales tax law to maintain an existing exemption for watercraft trade-ins. It allows buyers to apply a credit for the agreed-upon value of a titled or documented watercraft (documented by the U.S. Coast Guard) when purchasing a new or used watercraft from a dealer, reducing the taxable sales price. The credit must be separately stated on the invoice and does not apply to leases or rentals. This directly affects watercraft dealers and customers trading in boats, as it lowers the sales tax owed on the new purchase.
HB 5479 exempts "eligible fuel" (including motor fuel, alternative fuel, and leaded racing fuel) from Michigan's general sales tax starting January 1, 2026. This directly affects businesses selling these fuels and consumers purchasing them for eligible uses, excluding specific cases like aviation fuel or fuel used for heating. The bill explicitly excludes electric fuel used in vehicles if it's already taxed under the Motor Carrier Fuel Tax Act or Motor Fuel Tax Act. It defines key terms like "electric fuel" and "eligible fuel" based on existing tax acts, with no exemption for fuel used in aircraft or residential/commercial heating systems.
HB 5331 prohibits state agencies, local governments, universities, community colleges, and other entities receiving state funds from purchasing certain drones. It extends the same drone purchase restrictions that apply to the federal government to these Michigan entities. The bill amends Michigan's Management and Budget Act to require these organizations to follow federal guidelines when acquiring drones with state money. This directly affects any state-funded organization that might otherwise buy drones for operations.
HB 4059 exempts specific baby and toddler items from Michigan's use tax, meaning parents won't pay tax when purchasing these products. The bill adds 15 categories to the tax exemption list, including cribs, strollers, safety gates, breast pumps, bottles, diapers, and clothing accessories designed for infants or toddlers. It also defines detailed terms like "breast pump collection supplies" to clarify which products qualify for the exemption. This directly affects parents and caregivers buying essential infant products, making them tax-free at point of sale.
