State management: funds; lapse of certain unspent funds to the general fund; provide for. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

HB 4960 creates a dedicated "local government reimbursement fund" to hold unspent funds from specific tax sources (like use tax collections), preventing them from lapsing to the general fund. It requires the state Treasury to annually compensate municipalities for property tax revenue losses tied to certain exemptions under MCL 211.9o(2)(b) by May 31 each year. If the fund lacks sufficient money, payments to affected municipalities are reduced proportionally. This directly affects municipalities that claimed these property tax exemptions, ensuring they receive annual reimbursements from the dedicated fund.