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HB 6213

Corporate income tax: revenue distribution; earmark to the Michigan transportation fund: provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695).

2023-2024 Regular Session Introduced by Alabas Farhat

Directs portion of Michigan corporate income tax revenue to transportation fund, creating dedicated infrastructure funding stream with potential trade-offs for other state services.

bill electronically reproduced 11/26/2024
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Bill Summary · HB 6213

Legislative bill overview

HB 6213 proposes to amend Michigan's corporate income tax revenue distribution laws by directing a portion of corporate income tax revenues to the Michigan transportation fund. The bill modifies Section 695 of the 1967 Public Act 281, which governs how the state allocates corporate tax revenue among various accounts and funds.

Why is this important

Transportation infrastructure funding is a persistent challenge for states, and Michigan faces significant needs for road, bridge, and transit maintenance. By earmarking corporate tax revenue specifically for transportation, this bill would create a dedicated funding stream that doesn't require annual budget negotiations, potentially providing more predictable resources for infrastructure projects.

Potential points of contention

  • Revenue reallocation concerns: Directing corporate tax dollars to transportation means less revenue available for other state priorities (education, health services, general operations), which could face funding pressures
  • Corporate tax burden perception: Some may view this as increasing effective corporate taxation through budgetary mechanisms, while business groups might argue it impacts their competitiveness
  • Funding mechanism precedent: Earmarking revenue sets a precedent that could fragment the budget and limit legislative flexibility in responding to changing state needs

Compiled from official sources — confirm details with the bill’s official record.

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