HB 4260 redirects $115 million annually from Michigan's 4% general sales tax revenue into the Public Safety and Violence Prevention Fund starting with the 2025-2026 fiscal year. This change affects state budget allocations, shifting funds previously going to the general fund toward public safety and violence prevention programs. The bill amends Michigan's General Sales Tax Act (MCL 205.75) to establish this specific annual transfer, with the amount adjusted based on actual tax collections. It does not create new taxes but reallocates existing revenue streams.
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 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 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.
