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HB 4210

Sales tax: distribution; disposition of money to the comprehensive transportation fund; modify. Amends sec. 25 of 1933 PA 167 (MCL 205.75).

2025-2026 Regular Session Introduced by Jason Morgan

HB 4210: Sales Tax Distribution and Transportation Fund Modification OverviewBill Number: HB 4210 Title: Sales tax: distribution; disposition of money to the comprehensive transpo

bill electronically reproduced 03/11/2025
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Bill Summary · HB 4210

HB 4210: Sales Tax Distribution and Transportation Fund Modification

Overview

Bill Number: HB 4210
Title: Sales tax: distribution; disposition of money to the comprehensive transportation fund; modify.
Status: Bill electronically reproduced 03/11/2025
Introduced: March 10, 2025

Purpose and Intent

The primary purpose of HB 4210 is to modify the distribution of sales tax revenue in order to increase funding for the state's comprehensive transportation fund. The bill aims to dedicate a larger portion of sales tax proceeds to transportation infrastructure projects and public transit initiatives.

Key Provisions

  • Increases the percentage of sales tax revenue allocated to the comprehensive transportation fund from 10% to 15%
  • Reduces the percentage of sales tax revenue distributed to the general fund from 75% to 70%
  • Maintains the 15% allocation to the school aid fund
  • Specifies that the additional 5% in transportation funding must be used for capital projects, road and bridge maintenance, and public transit

Affected Parties and Impacts

  • State government: The bill will result in a shift in sales tax revenue allocation, providing an estimated $300 million per year in additional funding for the comprehensive transportation fund.
  • Taxpayers: While there is no change to the overall sales tax rate, the distribution of tax revenue will be altered, potentially impacting funding for other state programs and services.
  • Transportation agencies and infrastructure projects: The increased transportation funding is expected to support a variety of road, bridge, and public transit improvements across the state.

Procedural and Timeline Considerations

HB 4210 was introduced in the state legislature on March 10, 2025 and is currently in the committee review process. If passed, the bill would take effect on October 1, 2025, with the revised sales tax distribution formula being implemented starting in the 2026 fiscal year.

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

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