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SB 561

Sales tax: distribution; distribution of sales tax revenue for the revenue sharing trust fund; provide for. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: SB 0559'25, SB 0912'26

2025-2026 Regular Session Introduced by John Cherry and 2 co-sponsors

Reallocates Michigan sales tax revenue distribution to the revenue sharing trust fund; full fiscal impact depends on companion bills SB 559-560.

referred to Committee on Appropriations
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WeVote Research Nonpartisan
Bill Summary · SB 561

Legislative bill overview

SB 561 amends Michigan's sales tax distribution law to modify how sales tax revenue is allocated to the revenue sharing trust fund. The bill is tied to companion legislation (SB 559 and SB 560), suggesting a coordinated package of tax distribution changes. The specific mechanics of the revenue reallocation are not detailed in the bill summary provided.

Why is this important

Sales tax distribution formulas directly affect state and local government funding for essential services like education, infrastructure, and public safety. Changes to revenue sharing allocations can significantly impact municipal budgets, particularly for smaller communities that depend heavily on state distributions. The tie-bar structure indicates these three bills work together to create a comprehensive tax policy shift.

Potential points of contention

  • Municipal impact uncertainty: Without knowing whether distribution increases or decreases for specific entities, local governments cannot assess fiscal consequences
  • Revenue sharing formula changes: Alterations to how trust fund money is distributed between state and local governments may benefit some regions while disadvantaging others
  • Coordinated package complexity: Linking three bills together makes it difficult for individual scrutiny and may obscure the full scope of tax policy changes being implemented

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

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