This bill prohibits local governments in Michigan, such as cities and counties, from creating or enforcing taxes and regulations based on carbon emissions, energy consumption, or vehicle miles traveled. It defines these restricted measures broadly to include fees on greenhouse gases, specific fuel types, and mandatory emissions trading programs. If passed, any existing local rules violating these restrictions would become invalid, and local entities would be barred from using public funds to defend such policies in court. The legislation also allows individuals to sue to stop the implementation of these prohibited local measures and grants them the right to recover legal fees if they win the case.
This bill seeks to repeal a 1964 law that prevented cities and villages in Michigan from imposing taxes other than standard property taxes. By removing this restriction, the legislation would allow local municipalities to explore alternative revenue sources beyond ad valorem property taxes. The change directly affects city and village governments, granting them the legal authority to levy different types of taxes if they choose to do so.
HB 5855 amends Michigan's City Utility Users Tax Act to create exemptions for specific businesses and locations. The bill allows qualified start-up businesses to be exempt from utility taxes for up to five years if they first receive a tax credit and receive approval from their city council. Additionally, it extends tax exemptions to businesses operating within designated Renaissance zones and HOPE zones, while explicitly excluding casinos from these benefits. To claim the start-up exemption, businesses must file an affidavit by September 1 and provide proof of their prior tax credit eligibility.
This bill seeks to repeal the Local Financial Stability and Choice Act of 2012, a law that previously set financial rules for local governments in Michigan. By removing the specific sections of the Michigan Compiled Laws associated with that act, the legislation would eliminate those existing financial regulations. Consequently, local municipalities and other local entities would no longer be subject to the oversight and requirements established under the repealed statute. The bill was introduced by Senator Mary Cavanagh and is currently under consideration by the Committee on Local Government.
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Local Government
HB 4011 authorizes the transfer of two specific parcels of state-owned land in Arenac County (totaling ~118 acres) to local governments or land banks for public use. The bill requires that transfers occur at fair market value through competitive sales or direct agreements, with all proceeds (after costs) going to the state. It mandates that transferred land must be used for public purposes like parks, schools, or emergency services - not for-profit ventures - and prohibits charging different fees to the public. The transfer process requires approval from the state administrative board and includes specific deed restrictions to ensure ongoing public access.
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Local Government
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.
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.
