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SB-561, As Passed Senate, April 30, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 561
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 25 (MCL 205.75), as amended by 2025 PA 17.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 25. (1) All money received and collected under this act 1
must be deposited by the department in the state treasury to the 2
credit of the general fund, except as otherwise provided in this 3
section. 4
(2) Fifteen percent of the collections of the tax imposed at a 5
rate of 4% must be distributed to cities, villages, and townships 6
pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 7
PA 140, MCL 141.901 to 141.921. 8
(3) Sixty percent of the collections of the tax imposed at a 9
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rate of 4% must be deposited in the state school aid fund and 1
distributed as provided by law. In addition, all of the collections 2
of the tax imposed at the additional rate of 2% approved by the 3
electors on March 15, 1994 must be deposited in the state school 4
aid fund. 5
(4) Except as otherwise provided in this subsection, not less 6
than 27.9% of 25% of the collections of the general sales tax 7
imposed at a rate of 4% directly or indirectly on fuels sold to 8
propel motor vehicles upon highways, on the sale of motor vehicles, 9
and on the sale of the parts and accessories of motor vehicles by 10
new and used car businesses, used car businesses, accessory dealer 11
businesses, and gasoline station businesses as classified by the 12
department must be deposited each year into the comprehensive 13
transportation fund. For the fiscal year ending September 30, 2021 14
only, the amount deposited into the comprehensive transportation 15
fund under this subsection must be reduced by $18,000,000.00 and 16
that $18,000,000.00 must be deposited into the transportation 17
administration collection fund. 18
(5) Beginning October 1, 2026, 8.9% of the collections of the 19
tax imposed at a rate of 4% must be deposited into the revenue 20
sharing trust fund created under section 11a of the Michigan trust 21
fund act, 2000 PA 489, MCL 12.261a, and must be distributed to 22
cities, villages, townships, and counties pursuant to section 11b 23
of the Michigan trust fund act, 2000 PA 489, MCL 12.261b. 24
(6) (5) Beginning October 1, 2016 and the first day of each 25
calendar quarter thereafter, an amount equal to the collections for 26
the calendar quarter that is 2 calendar quarters immediately 27
preceding the current calendar quarter of the tax imposed under 28
this act at the additional rate of 2% approved by the electors on 29
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March 15, 1994 from the sale at retail of aviation fuel must be 1
distributed as follows: 2
(a) An amount equal to 35% of the collections of the tax 3
imposed at a rate of 2% on the sale at retail of aviation fuel must 4
be deposited in the state aeronautics fund and must be expended, on 5
appropriation, only for those purposes authorized in the 6
aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 7
to 259.208. 8
(b) An amount equal to 65% of the collections of the tax 9
imposed at a rate of 2% on the sale at retail of aviation fuel must 10
be deposited in the qualified airport fund and must be expended, on 11
appropriation, only for those purposes authorized under section 35 12
of the aeronautics code of the state of Michigan, 1945 PA 327, MCL 13
259.35. 14
(7) (6) The department shall, on an annual basis, reconcile 15
the amounts distributed under subsection (5) (6) during each fiscal 16
year with the amounts actually collected for a particular fiscal 17
year and shall make any necessary adjustments, positive or 18
negative, to the amounts to be distributed for the next successive 19
calendar quarter that begins January 1. The state treasurer or the 20
state treasurer's designee shall annually provide to the operator 21
of each qualified airport a report of the reconciliation performed 22
under this subsection. The reconciliation report is subject to the 23
confidentiality restrictions and penalties provided in section 24
28(1)(f) of 1941 PA 122, MCL 205.28. 25
(8) (7) An amount equal to the collections of the tax imposed 26
at a rate of 4% under this act from the sale at retail of computer 27
software must be deposited in the Michigan health initiative fund 28
created in section 5911 of the public health code, 1978 PA 368, MCL 29
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333.5911, and must be considered in addition to, and is not 1
intended as a replacement for any other money appropriated to the 2
department of health and human services. The funds deposited in the 3
Michigan health initiative fund on an annual basis must not be less 4
than $9,000,000.00 or more than $12,000,000.00. 5
(9) (8) In addition to the money deposited in the state school 6
aid fund under subsection (3), from the collections of the tax 7
imposed at a rate of 4% under this act, an amount equal to the sum 8
of the following, as determined by the department, must be 9
deposited into the state school aid fund: 10
(a) All revenue lost to the state school aid fund as a result 11
of the exemption under section 4a(1)(u). 12
(b) All revenue lost to the state school aid fund as a result 13
of the exemption under section 4ee. A person that claims an 14
exemption under section 4ee shall report the sales price of the 15
data center equipment as that term is defined in section 4ee and 16
any other information necessary to determine the amount of revenue 17
lost to the state school aid fund as a result of the exemption 18
under section 4ee annually on a form at the time and in a manner 19
prescribed by the department. The report required under this 20
subdivision must not include any remittance for tax, and does not 21
constitute a return or otherwise alleviate any obligations under 22
section 6. 23
(c) All revenue lost to the state school aid fund as a result 24
of the exclusion under section 1(1)(d)(xv). 25
(d) All revenue lost to the state school aid fund as a result 26
of both of the following: 27
(i) The exemption under section 4gg. 28
(ii) The exemption under section 4gg of the use tax act, 1937 29
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PA 94, MCL 205.94gg. 1
(10) (9) The balance in the state general fund shall be 2
disbursed only on an appropriation or appropriations by the 3
legislature. 4
(11) (10) As used in this section: 5
(a) "Aviation fuel" means fuel as that term is defined in 6
section 4 of the aeronautics code of the state of Michigan, 1945 PA 7
327, MCL 259.4. 8
(b) "Comprehensive transportation fund" means the 9
comprehensive transportation fund created in section 10b of 1951 PA 10
51, MCL 247.660b. 11
(c) "Qualified airport" means that term as defined in section 12
109 of the aeronautics code of the state of Michigan, 1945 PA 327, 13
MCL 259.109. 14
(d) "Qualified airport fund" means the qualified airport fund 15
created in section 34(2) of the aeronautics code of the state of 16
Michigan, 1945 PA 327, MCL 259.34. 17
(e) "State aeronautics fund" means the state aeronautics fund 18
created in section 34(1) of the aeronautics code of the state of 19
Michigan, 1945 PA 327, MCL 259.34. 20
(f) "State school aid fund" means the state school aid fund 21
established in section 11 of article IX of the state constitution 22
of 1963. 23
(g) "Transportation administration collection fund" means the 24
transportation administration collection fund created in section 25
810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b. 26
Enacting section 1. This amendatory act does not take effect 27
unless all of the following bills of the 103rd Legislature are 28
enacted into law: 29
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Final Page
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(a) Senate Bill No. 559. 1
(b) Senate Bill No. 912. 2