This bill modifies the Michigan Trust Fund Act to establish a permanent Community District Education Trust Fund designed to help schools in specific districts that are currently prohibited from raising local taxes. The fund will be financed by depositing up to $617 million in tobacco settlement revenue starting in fiscal year 2017, with the money used to cover gaps in state funding for these districts. The legislation also sets a sunset provision requiring that any remaining balance in the fund be transferred to the state school aid fund after September 30, 2026.
SB 721 amends Michigan's Commercial Redevelopment Act to update property tax exemption rules for commercial facilities. It limits total exemption periods to 12 years (including extensions), requires local governments to document criteria for renewing exemptions, and extends the deadline for new exemptions from 2025 to 2035. The bill also allows the state treasurer to temporarily exclude up to half the education tax mills for qualifying facilities for up to 6 years to promote job growth, with a yearly cap of 45 such exclusions. Local governments must annually report on exemption impacts, including property values and job creation. This directly affects commercial businesses seeking tax benefits, local governments issuing exemptions, and state tax administration.
SB 423 ends specific programs that helped homeowners pay overdue property taxes and avoid foreclosure. It directly affects property owners with delinquent taxes who previously could use these reduced payment options. The bill modifies existing law by setting expiration dates ("sunsetting") for these programs, meaning they will no longer be available after the specified dates. This change removes temporary relief measures, requiring affected homeowners to pay full delinquent taxes or face standard foreclosure processes.
This Michigan bill requires the state attorney general to submit quarterly reports to both houses of the legislature whenever litigation costs exceed $250,000, with more detailed reporting required for cases exceeding $1,000,000. The reports must include financial accounts, explanations of the legal cases, and justifications for the expenditures, ensuring lawmakers can track how state funds are being used in legal proceedings. If the attorney general fails to submit these reports, legislators can seek court orders to compel compliance, and the auditor general must investigate and report on any violations of the new requirements. The bill establishes clear thresholds for transparency and creates enforcement mechanisms to ensure accountability in state legal spending.
This bill modifies Michigan's property tax rules to clarify how taxable values are calculated when property ownership transfers. It establishes that a property's taxable value resets to its current market value upon transfer, but then limits future annual increases to the lesser of 5% or the inflation rate until another transfer occurs. The legislation also defines specific scenarios where a transfer does not trigger a reset, such as when property is moved into a trust by a parent for their own children or grandchildren, provided the home remains residential. Additionally, it allows local tax officials to correct past valuation errors related to missed transfers for up to three years and clarifies rules for land contracts and certain bond-funded properties.
This bill amends state law to update tax exemption rules for downtown development authorities in Michigan. It clarifies that these entities remain exempt from real estate transfer taxes even after the state real estate transfer tax act was repealed. The changes will only take effect if two other related bills are also enacted into law. Ultimately, the measure ensures these local economic development organizations do not face new transfer tax obligations on property instruments.
HB 5878 eliminates the personal property tax in Michigan for all items that do not qualify for an existing specific exemption, effective for taxes levied after December 31, 2026. Owners of such property must annually file a statement with their local tax collector to claim this new exemption, while property that already has a designated exemption cannot be claimed under this new rule. The bill also requires local tax units to send summary data to the state Department of Treasury by April 1 each year to track the revenue impact of these new exemptions. This legislation directly affects business owners and individuals holding personal property by removing a tax burden on eligible assets, provided they complete the necessary filing requirements.
HB 5504 proposes creating a State Digital Service Office within Michigan's Department of Technology, Management, and Budget. The office would review software projects costing $1 million or more, advise state agencies on modern development practices (like user-centered design and agile methods), and require annual reports on progress and cost savings. It directly affects state departments and agencies developing digital services, mandating collaboration with the new office for projects over $500,000 and requiring transparency through public reporting on outcomes like time saved and error reduction. The bill aims to improve digital service efficiency and user experience across state government.
This bill modifies Michigan's sales tax rules for online marketplace facilitators, requiring them to collect and remit sales tax on all taxable sales made through their platforms regardless of whether the individual sellers have a physical presence in the state. It establishes that marketplace facilitators are responsible for auditing only their own facilitated sales unless sellers fail to provide necessary information, while also protecting facilitators from liability when sellers provide incorrect data or pay the tax directly. The legislation creates a special provision for delivery network companies, allowing them to deduct or exclude from their tax liability the sales tax they paid to marketplace sellers for qualified delivery services, such as those performed by couriers using personal vehicles or walking for distances under 75 miles.
HB 5517 creates a $0.005 per returnable beverage container tax credit for distributors who charge a deposit on containers, effective for tax years beginning January 1, 2026. The credit adjusts annually based on the U.S. Consumer Price Index starting in 2027. Distributors must attach a specific report (per 1976 IL 1) with their tax return to claim the credit, and any excess credit is refunded. This directly affects beverage distributors handling returnable containers in Michigan.
