HB 4185 — Sales tax: distribution; distribution of revenue; modify. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4186'25, HB 4187'25, HB 4184'25

HB-4185, As Passed House, March 19, 2025 SUBSTITUTE FOR HOUSE BILL NO.

(2) Fifteen percent of the collections of the tax imposed at a rate of 4% must be distributed to cities, villages, and townships pursuant to section 12 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.141.921.141.912.

(3) Sixty percent of the collections of the tax imposed at a KAS H00194'25 (H-2)(H-2)_HB4185_APH_1 4ge6x1p0cj7n 1 rate of 4% must be deposited in the state school aid fund and distributed as provided by law.

(a) An amount equal to 35% of the collections of the tax imposed at a rate of 2% on the sale at retail of aviation fuel must be deposited in the state aeronautics fund and must be expended, on KAS H00194'25 (H-2)(H-2)_HB4185_APH_1 4ge6x1p0cj7n 1 appropriation, only for those purposes authorized in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.

(7) An amount equal to the collections of the tax imposed at a KAS H00194'25 (H-2)(H-2)_HB4185_APH_1 4ge6x1p0cj7n 1 rate of 4% under this act from the sale at retail of computer software must be deposited in the Michigan health initiative fund created in section 5911 of the public health code, 1978 PA 368, MCL 333.5911, and must be considered in addition to, and is not intended as a replacement for any other money appropriated to the department of health and human services.

(9) In addition to the money deposited in the state school aid fund under subsections (3) and (8), for the fiscal year ending KAS H00194'25 (H-2)(H-2)_HB4185_APH_1 4ge6x1p0cj7n 1 September 30, 2026 and each fiscal year thereafter, $755,000,000.00 of the collections of the tax imposed at a rate of 4% under this act must be deposited in the state school aid fund.

(10) In addition to the money distributed to cities, villages, and townships under subsection (2), for the fiscal year ending September 30, 2026 and each fiscal year thereafter, $95,000,000.00 of the collections of the tax imposed at a rate of 4% under this act must be distributed on a per capita population basis to cities, villages, and townships pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.

KAS H00194'25 (H-2)(H-2)_HB4185_APH_1 4ge6x1p0cj7n 1 (f) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963.

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