HB 4210 amends Michigan's sales tax distribution rules to adjust funding for the Comprehensive Transportation Fund. It changes the percentage of sales tax revenue from car-related purchases (fuels, vehicles, parts/accessories sold by dealers/gas stations) allocated to this fund: 27.9% until September 2025, 60% for fiscal year 2025-2026, then 25% annually starting October 2026. The bill also maintains existing allocations for school aid (60%), city revenue sharing (15%), and specifies that 35% of aviation fuel tax revenue goes to the State Aeronautics Fund while 65% funds qualified airports. These changes directly affect businesses selling vehicles, fuel, and parts, and govern how transportation funding is structured.
HB 4231 redirects $75 million annually from Michigan's 4% general sales tax (starting fiscal year 2025) into the Public Safety and Violence Prevention Fund. It also specifies that aviation fuel tax revenue must be split 35% to the state aeronautics fund and 65% to qualified airport funds. Additionally, computer software sales tax revenue must fund Michigan's health initiatives at $9-12 million yearly. These changes directly affect state budget allocations, airport operators, and public safety programs without altering tax rates or creating new taxes.
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 4312 amends Michigan's sales tax distribution by directing 8.62% of the 4% general sales tax revenue to the Revenue Sharing Trust Fund starting October 1, 2025, with funds distributed to cities, villages, townships, and counties. It maintains existing allocations for aviation fuel tax (35% to the state aeronautics fund, 65% to qualified airport funds) and sets a minimum $9 million annual deposit from computer software sales tax into the Michigan Health Initiative Fund. The bill also clarifies adjustments for school aid fund revenue losses due to specific tax exemptions. These changes directly affect local governments, airports, and health programs through revised tax revenue streams.
This bill proposes a constitutional amendment to Michigan's budget rules (Article IX, Section 28), directly affecting how the state sets annual spending limits. It replaces current spending caps with a new formula tying budget growth to inflation, population changes, and voter-approved revenue increases. Any state revenue exceeding this calculated limit must be refunded to taxpayers via law. The amendment modifies how the legislature calculates yearly spending authority, requiring excess funds to flow back to citizens rather than remaining in the state budget.
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.
SB 417 changes how Michigan distributes corporate income tax revenue. Starting in the 2026-2027 fiscal year, it permanently allocates $50 million annually to the Michigan housing fund and $60 million (adjusted for inflation each year) to the beverage container handling fund, after prior allocations to other state funds. The bill also specifies that remaining tax revenue after these allocations goes to the general fund. This policy directly affects state budgeting by redirecting specific portions of corporate tax revenue to these designated funds, with the beverage container fund allocation being a new, permanent feature.
SB 472 redirects specific income tax revenues toward job creation programs. It requires that portions of withholding tax collected from businesses with "certified new jobs" (new positions) or "protected jobs" (existing positions) be deposited into two dedicated funds: the "Good Jobs for Michigan Fund" and the "More Jobs for Michigan Fund." Businesses participating in Michigan's strategic job programs must now separately report the tax amounts tied to these certified jobs on their annual tax filings. This affects employers with agreements under Michigan's job creation initiatives, ensuring targeted tax revenue flows directly to support workforce development.
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.
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.
