HB 4261 creates the Public Safety and Violence Prevention Fund within Michigan's trust fund system. It establishes the fund using money from the general sales tax (Section 25 of 1933 PA 167), donations, and investment earnings, with funds permanently staying in the account instead of lapsing to the general fund. Starting September 30, 2026, the state treasurer will distribute the fund’s revenues: 2% to health services for community violence intervention grants, 2% to crime victim funds, and the remainder based on each city/village/township’s violent crime rate (with a 5% reduction for areas not meeting crime reduction targets). This directly affects local governments receiving funds, the Department of Health and Human Services (administering grants), and crime victim programs.
HB 4157 creates a pilot program for a state-administered assessment system in Michigan public schools, replacing the current M-STEP testing. It requires item analysis for all tests (showing which questions students answered correctly and common mistakes) and mandates that districts use only student enrollment data from the time of testing when calculating school performance scores. The bill allocates $500,000 for an online tool to provide secure, immediate access to student-level assessment data for educators and parents. This bill directly affects public school districts receiving state aid and their students in grades 11-12, as it modifies assessment requirements under the State School Aid Act.
HB 4147 creates a dedicated "school consolidation and infrastructure fund" within Michigan's state school aid budget to support feasibility studies for consolidating administrative and service functions across school districts. It allocates $5 million for grants (up to $250,000 per district) to analyze opportunities in shared services like payroll, IT systems, facility management, food services, and transportation. Districts receiving grants must publicly share study results within 60 days and demonstrate plans for potential consolidation. The fund’s money remains available year-to-year without lapsing, but the bill does not fund actual consolidation - only the preliminary studies.
HB 4185 changes how Michigan's general sales tax revenue is distributed. It directs 15% of the 4% sales tax to cities, villages, and townships through the Glenn Steil Revenue Sharing Act. Sixty percent goes to the state school aid fund (including all 2% tax from aviation fuel sales), while 27.9% of 25% from vehicle/fuel sales funds the transportation system. Additionally, it requires $9-12 million annually from computer software sales to the Michigan health initiative fund.
HB 4184 increases Michigan's excise tax on aviation fuel from 3.10 cents to 4.00 cents per gallon. It directly affects fuel sellers, airlines, and airport operators by changing how this tax revenue is distributed. The bill modifies Section 203 of the Aeronautics Code to require 35% of the tax revenue to fund the state aeronautics fund and 65% to fund qualified airports. It also retains the 1.5-cent refund for airlines operating interstate flights and the exemption for fuel used in leaded racing fuel production.
HB 4186 increases Michigan's business income tax rate from 4.95% to 30% for all business activity occurring on or after January 1, 2025. This rate change directly affects businesses operating within Michigan that are subject to the state's business tax, including those previously filing under the corporate income tax act. The bill amends sections 201 and 500 of the Michigan Business Tax Act (2007 PA 36) to implement this rate increase and adjust the tax base calculations for businesses. The change represents a significant policy shift in how Michigan taxes business income, effective in 2025.
HB 4230 creates a new "neighborhood road fund" in Michigan's state treasury, funded by $100 million annually from income tax revenues (specifically from Section 695 of the 1967 Income Tax Act). This fund directly affects county road commissions, city and village road agencies, and the local bridge advisory board. Key provisions require $100 million yearly to be reserved exclusively for repairing closed, restricted, and critical bridges (managed by the advisory board), while the remaining funds are distributed to road agencies based on their road mileage - $100,000 per county commission plus a mileage-based share for all counties, and similarly for cities/villages. The bill specifies these funds must cover road preservation, maintenance, and preventative work without requiring local matching funds.
HB 4170 permanently sets Michigan's individual income tax rate at 4.05% for all taxpayers, replacing a temporary 4.25% rate scheduled to take effect in 2024. It creates a mechanism where the rate could decrease further if state revenue growth exceeds inflation, requiring annual revenue reviews. The bill directly affects all Michigan residents who pay individual income tax. The change takes effect immediately for tax years beginning January 1, 2025, with the 4.05% rate now permanent unless triggered by the revenue growth condition.
HB 4014 exempts certain family transfers of residential property from a rule that normally resets property taxes to current market value after a sale or transfer. It specifically applies when property is transferred to close family members (such as parents, children, or siblings) through trusts, wills, or inheritances, provided the property isn't used commercially afterward. To qualify, beneficiaries must provide proof of their relationship within 30 days, or face a $200 fine. The bill modifies Michigan’s property tax law to prevent "taxable value" adjustments that would otherwise increase annual property tax bills significantly for these transfers.
HB 4162 allocates $17.77 billion in state and federal funds for Michigan's K-12 public schools for the 2025-2026 fiscal year, primarily from the state school aid fund and other designated trust funds. It sets a new target per-student funding level of $10,025 and establishes a formula to calculate each school district's foundation allowance based on the previous year's funding, inflation (using the Consumer Price Index), and the target amount. School districts with funding below the target receive adjusted increases, while those above the target see smaller raises tied to inflation. The bill directly affects all public school districts by determining their state funding allocation through this updated formula.
