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SB-559, As Passed Senate, April 30, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 559
A bill to amend 2000 PA 489, entitled
"Michigan trust fund act,"
(MCL 12.251 to 12.262) by adding sections 11a and 11b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11a. (1) Beginning October 1, 2026, the revenue sharing 1
trust fund is established in the department of treasury. The 2
revenue sharing trust fund consists of 1 or more of the following: 3
(a) Money deposited in the revenue sharing trust fund as 4
required by section 25 of the general sales tax act, 1933 PA 167, 5
MCL 205.75. 6
(b) Donations of money made to the revenue sharing trust fund 7
from any source. 8
(c) Interest and earnings from revenue sharing trust fund 9
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investments. 1
(2) The state treasurer shall direct the investment of the 2
revenue sharing trust fund. 3
(3) Money in the revenue sharing trust fund at the close of a 4
fiscal year remains in the revenue sharing trust fund and does not 5
lapse to the general fund. 6
Sec. 11b. (1) Beginning on October 1, 2026, subject to 7
subsections (6) and (7), and upon appropriation, the state 8
treasurer shall transfer and disburse the money received by the 9
revenue sharing trust fund as follows: 10
(a) To cities, villages, and townships, $299,126,400.00 to be 11
distributed to each city, village, or township, regardless of 12
whether any limitation or eligibility criteria under section 952 of 13
article 5 of 2023 PA 119 were met, in the same proportion of the 14
revenue sharing payment that each was eligible to receive under 15
section 952 of article 5 of 2023 PA 119, rounded to the nearest 16
dollar. 17
(b) To cities, villages, and townships, any remaining amount 18
appropriated to be distributed as follows: 19
(i) One-third as taxable value payments as provided under 20
subsection (2). 21
(ii) One-third as unit type population payments as provided 22
under subsection (3). 23
(iii) One-third as yield equalization payments as provided under 24
subsection (4). 25
(c) To counties, $261,069,700.00 to be distributed to each 26
county, regardless of whether any limitation or eligibility 27
criteria under section 952 or 955 of article 5 of 2023 PA 119 were 28
met, in the same proportion of the revenue sharing payment that 29
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each was eligible to receive under section 955 of article 5 of 2023 1
PA 119, rounded to the nearest dollar. 2
(d) To counties, any remaining amount appropriated as a 3
taxable value payment determined as follows for each county: 4
(i) Determine the per capita taxable value for each county by 5
dividing the taxable value of that county by the population of that 6
county. 7
(ii) Determine the statewide per capita taxable value by 8
dividing the total taxable value of all counties by the total 9
population of all counties. 10
(iii) Determine the per capita taxable value ratio for each 11
county by dividing the statewide per capita taxable value by the 12
per capita taxable value for that county. 13
(iv) Determine the adjusted taxable value population for each 14
county by multiplying the per capita taxable value ratio as 15
determined under subparagraph (iii) for that county by the population 16
of that county. 17
(v) Determine the total statewide adjusted taxable value 18
population, which is the sum of all adjusted taxable value 19
population for all counties. 20
(vi) Determine the taxable value payment rate by dividing the 21
amount to be distributed under this subdivision by the total 22
statewide adjusted taxable value population as determined under 23
subparagraph (v). 24
(vii) Determine the taxable value payment for each county by 25
multiplying the result under subparagraph (vi) by the adjusted 26
taxable value population for that county. 27
(2) A taxable value payment described in subsection (1)(b)(i) 28
to each city, village, and township is determined as follows: 29
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(a) Determine the per capita taxable value for each city, 1
village, and township by dividing the taxable value of that city, 2
village, or township by the population of that city, village, or 3
township. 4
(b) Determine the statewide per capita taxable value by 5
dividing the total taxable value of all cities, villages, and 6
townships by the total population of all cities, villages, and 7
townships. 8
(c) Determine the per capita taxable value ratio for each 9
city, village, and township by dividing the statewide per capita 10
taxable value by the per capita taxable value for that city, 11
village, or township. 12
(d) Determine the adjusted taxable value population for each 13
city, village, and township by multiplying the per capita taxable 14
value ratio as determined under subdivision (c) for that city, 15
village, or township by the population of that city, village, or 16
township. 17
(e) Determine the total statewide adjusted taxable value 18
population, which is the sum of all adjusted taxable value 19
population for all cities, villages, and townships. 20
(f) Determine the taxable value payment rate by dividing the 21
amount to be distributed under this subsection by the total 22
statewide adjusted taxable value population as determined under 23
subdivision (e). 24
(g) Determine the taxable value payment for each city, 25
village, and township by multiplying the result under subdivision 26
(f) by the adjusted taxable value population for that city, 27
village, or township. 28
(3) A unit type population payment as described in subsection 29
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(1)(b)(ii) to each city, village, and township is determined as 1
follows: 2
(a) Determine the unit type population weight factor for each 3
city, village, and township as follows: 4
(i) For a township with a population of 5,000 or less, 1.0. 5
(ii) For a township with a population of more than 5,000 but 6
less than 10,001, 1.2. 7
(iii) Except as otherwise provided in subparagraph (xix), for a 8
township with a population of more than 10,000 but less than 9
20,001, 1.44. 10
(iv) For a township with a population of more than 20,000 but 11
less than 40,001, 4.32. 12
(v) For a township with a population of more than 40,000 but 13
less than 80,001, 5.18. 14
(vi) For a township with a population of more than 80,000, 15
6.22. 16
(vii) For a village with a population of 5,000 or less, 1.5. 17
(viii) For a village with a population of more than 5,000 but 18
less than 10,001, 1.8. 19
(ix) For a village with a population of more than 10,000, 2.16. 20
(x) For a city with a population of 5,000 or less, 2.5. 21
(xi) For a city with a population of more than 5,000 but less 22
than 10,001, 3.0. 23
(xii) For a city with a population of more than 10,000 but less 24
than 20,001, 3.6. 25
(xiii) For a city with a population of more than 20,000 but less 26
than 40,001, 4.32. 27
(xiv) For a city with a population of more than 40,000 but less 28
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than 80,001, 5.18. 1
(xv) For a city with a population of more than 80,000 but less 2
than 160,001, 6.22. 3
(xvi) For a city with a population of more than 160,000 but 4
less than 320,001, 7.46. 5
(xvii) For a city with a population of more than 320,000 but 6
less than 640,001, 8.96. 7
(xviii) For a city with a population of more than 640,000, 8
10.75. 9
(xix) For a township that has a population of more than 10,000 10
and provides documentation to the department of treasury that the 11
township provides for or makes available all of the following, the 12
unit type population weight factor for a city with the same 13
population: 14
(A) Fire services. 15
(B) Police services on a 24-hour basis either through 16
contracting for or directly employing personnel. 17
(C) Water services to 50% or more of the township's residents. 18
(D) Sewer services to 50% or more of the township's residents. 19
(b) Determine the adjusted unit type population for each city, 20
village, and township by multiplying the unit type population 21
weight factor for that city, village, or township as determined 22
under subdivision (a) by the population of the city, village, or 23
township. 24
(c) Determine the total statewide adjusted unit type 25
population, which is the sum of the adjusted unit type population 26
for all cities, villages, and townships. 27
(d) Determine the unit type population payment rate by 28
dividing the amount to be distributed under this subsection by the 29
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total statewide adjusted unit type population as determined under 1
subdivision (c). 2
(e) Determine the unit type population payment for each city, 3
village, and township by multiplying the result under subdivision 4
(d) by the adjusted unit type population for that city, village, or 5
township. 6
(4) A yield equalization payment described in subsection 7
(1)(b)(iii) to each city, village, or township must be in an amount 8
sufficient to provide the guaranteed tax base for a local tax 9
effort, but not to exceed 0.02, and is determined as follows: 10
(a) The guaranteed tax base is the maximum combined state and 11
local per capita taxable value that can be guaranteed in a state 12
fiscal year to each city, village, and township for a local tax 13
effort, not to exceed 0.02, if an amount equal to the amount 14
described in subsection (1)(b)(iii) is distributed to cities, 15
villages, and townships whose per capita taxable value is below the 16
guaranteed tax base. 17
(b) The full yield equalization payment to each city, village, 18
and township is the product of the amounts determined under 19
subparagraphs (i) and (ii): 20
(i) An amount greater than zero that is equal to the difference 21
between the guaranteed tax base determined in subdivision (a) and 22
the per capita taxable value of the city, village, or township. 23
(ii) The local tax effort of the city, village, or township, 24
not to exceed 0.02, multiplied by the population of that city, 25
village, or township. 26
(5) For purposes of determining distributions described in 27
subsection (1)(a), any city, village, or township that completely 28
merges with another city, village, or township is a single entity, 29
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so that when determining the distribution the combined single 1
entity is to receive under subsection (1)(a), the city, village, 2
and township revenue sharing amount that each of the merging local 3
units of government was eligible to receive under section 952 of 4
article 5 of 2023 PA 119 is summed. 5
(6) If the balance in the revenue sharing trust fund is less 6
than the amount appropriated, payments made under subsection (1)(b) 7
and (d) must be prorated to reflect the remaining money in the 8
revenue sharing trust fund after distributions made under 9
subsection (1)(a) and (c). 10
(7) If a city, village, township, or county is eligible to 11
receive a distribution under subsection (1), the distribution must 12
be made on the last business day of October, December, February, 13
April, June, or August, as applicable. 14
(8) Money in the revenue sharing trust fund must not be 15
transferred, expended, withdrawn, or otherwise disbursed from the 16
revenue sharing trust fund except as authorized in this section. 17
(9) Payments distributed under this section may be withheld in 18
accordance with sections 17a and 21 of the Glenn Steil state 19
revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921. 20
(10) For each state fiscal period that begins after September 21
30, 2027, the governor and the state budget director shall include 22
in the annual budget for that fiscal period submitted to the 23
legislature under section 18 of article V of the state constitution 24
of 1963 an appropriation directing the state treasurer to transfer 25
and disburse money from the revenue sharing trust fund as provided 26
in this section. 27
Enacting section 1. This amendatory act does not take effect 28
unless all of the following bills of the 103rd Legislature are 29
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Final Page
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enacted into law: 1
(a) Senate Bill No. 561. 2
(b) Senate Bill No. 912. 3