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HB 4312

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: HB 4311'25

2025-2026 Regular Session Introduced by Joe Aragona and 9 co-sponsors

Summary of Michigan HB 4312 - Sales Tax Distribution Bill OverviewHouse Bill 4312 proposes changes to the distribution of Michigan's sales tax revenue, specifically regarding the r

bill electronically reproduced 04/15/2025
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Bill Summary · HB 4312

Summary of Michigan HB 4312 - Sales Tax Distribution

Bill Overview

House Bill 4312 proposes changes to the distribution of Michigan's sales tax revenue, specifically regarding the revenue sharing trust fund. If enacted, the bill would amend Section 25 of Public Act 167 of 1933 to modify how sales tax proceeds are allocated.

Key Provisions

  • Revenue Sharing Trust Fund Allocation: The bill would require that a specified percentage of sales tax revenue be distributed to the revenue sharing trust fund. This percentage would increase over a multi-year period:

    • 15% of sales tax revenue in the first fiscal year
    • 17.5% in the second fiscal year
    • 20% in the third fiscal year and each year thereafter

  • Increase in Local Government Funding: The additional revenue directed to the trust fund would result in higher payments to local governments through the revenue sharing program. This is intended to provide more financial support for cities, townships, and counties.

  • Tie-Bar with HB 4311: This bill is tied to the passage of HB 4311, which deals with the distribution of use tax revenue. The two bills are linked and must both be enacted for the changes in HB 4312 to take effect.

Impact and Timeline

  • Affected Entities: The primary impacts of this legislation would be on the state government's sales tax revenue distribution, as well as local governments that receive funding through the revenue sharing trust fund.

  • Effective Date: If passed, the changes in HB 4312 would be implemented over a 3-year period, with the full 20% allocation to the trust fund taking effect in the third fiscal year after enactment.

Overall, HB 4312 is intended to direct a greater share of Michigan's sales tax revenue to local governments through the revenue sharing program, providing them with additional financial resources. The bill's changes are tied to the passage of related legislation, HB 4311, and would be phased in over multiple years.

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

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