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SB565 • 2026

Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

Small Business Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sarah Anthony (District 21)
Last action
2025-10-08
Official status
ASSIGNED PA 0027'25 WITH IMMEDIATE EFFECT
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund.

What This Bill Does

  • Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund.
  • Amends sec.
  • 3a of 2000 PA 489 (MCL 12.253a).

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-10-08 SJ 90 Pg. 1596

    PRESENTED TO GOVERNOR 10/7/2025 1:20 PM

  2. 2025-10-08 SJ 90 Pg. 1588

    APPROVED BY GOVERNOR 10/7/2025 2:02 PM

  3. 2025-10-08 SJ 90 Pg. 1588

    FILED WITH SECRETARY OF STATE 10/7/2025 2:52 PM

  4. 2025-10-08 SJ 90 Pg. 1588

    ASSIGNED PA 0027'25 WITH IMMEDIATE EFFECT

  5. 2025-10-03 SJ 88 Pg. 1064

    GIVEN IMMEDIATE EFFECT

  6. 2025-10-03 SJ 88 Pg. 1064

    FULL TITLE AGREED TO

  7. 2025-10-03 SJ 88 Pg. 1064

    ORDERED ENROLLED

  8. 2025-10-02 HJ 92 Pg. 1436

    rule suspended

  9. 2025-10-02 HJ 92 Pg. 1436

    motion to discharge committee approved

  10. 2025-10-02 HJ 92 Pg. 1436

    placed on second reading

  11. 2025-10-02 HJ 92 Pg. 1438

    read a second time

  12. 2025-10-02 HJ 92 Pg. 1438

    placed on third reading

  13. 2025-10-02 HJ 92 Pg. 1441

    placed on immediate passage

  14. 2025-10-02 HJ 92 Pg. 1441

    read a third time

  15. 2025-10-02 HJ 92 Pg. 1441

    passed; given immediate effect Roll Call #244 Yeas 102 Nays 7 Excused 0 Not Voting 1

  16. 2025-10-02 HJ 92 Pg. 1441

    inserted full title

  17. 2025-10-02 HJ 92 Pg. 1441

    returned to Senate

  18. 2025-09-26 HJ 88 Pg. 1047

    received on 09/25/2025

  19. 2025-09-26 HJ 88 Pg. 1049

    read a first time

  20. 2025-09-26 HJ 88 Pg. 1049

    referred to Committee on Appropriations

  21. 2025-09-25 SJ 82 Pg. 983

    DISCHARGE COMMITTEE APPROVED

  22. 2025-09-25 SJ 82 Pg. 984

    PLACED ON ORDER OF GENERAL ORDERS

  23. 2025-09-25 SJ 82 Pg. 984

    RULES SUSPENDED FOR IMMEDIATE CONSIDERATION

  24. 2025-09-25 SJ 82 Pg. 986

    REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

  25. 2025-09-25 SJ 82 Pg. 986

    PLACED ON ORDER OF THIRD READING

  26. 2025-09-25 SJ 82 Pg. 989

    RULES SUSPENDED

  27. 2025-09-25 SJ 82 Pg. 989

    PLACED ON IMMEDIATE PASSAGE

  28. 2025-09-25 SJ 82 Pg. 1008

    PASSED ROLL CALL # 252 YEAS 19 NAYS 16 EXCUSED 2 NOT VOTING 0

  29. 2025-09-18 SJ 79 Pg. 961

    INTRODUCED BY SENATOR SARAH ANTHONY

  30. 2025-09-18 SJ 79 Pg. 961

    REFERRED TO COMMITTEE ON APPROPRIATIONS

Official Summary Text

Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

Current Bill Text

Read the full stored bill text 
(7)
Act No. 27
Public Acts of 2025
Approved by the Governor
October 7, 2025
Filed with the Secretary of State
October 7, 2025
EFFECTIVE DATE: October 7, 2025

STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2025
Introduced by Senator Anthony
ENROLLED SENATE BILL No. 565
AN ACT to amend 2000 PA 489, entitled “An act to create certain funds; to provide for the allocation of certain
revenues among certain funds and for the operation, investment, and expenditure of certain funds; and to impose
certain duties and requirements on certain state officials, ” by amending section 3a (MCL 12.253a), as added by
2023 PA 174.
The People of the State of Michigan enact:
Sec. 3a. (1) The local government reimbursement fund is created in the state treasury.
(2) The state treasurer shall deposit money and assets received under section 21(7) of the use tax act,
1937 PA 94, MCL 205.111, or from any other source in the fund. The state treasurer shall direct the investment
of money in the fund and credit interest and earnings from the investments to the fund.
(3) Money in the fund at the close of the fiscal year does not remain in the fund and lapses to the general fund.
(4) The department of treasury is the administrator of the fund for audits of the fund.
(5) The department of treasury shall expend money from the fund, upon appropriation, only for the purpose of
compensating municipalities as described in this subsection. Subject to subsection (6), on or before May 31, 2024,
and on or before May 31 of each year thereafter, the department of treasury shall compensate municipalities for
the revenue lost during the i mmediately preceding property tax year as a result of exemptions claimed under
section 9o(2)(b) of the general property tax act, 1893 PA 206, MCL 211.9o, as determined by the department of
treasury.
(6) If the money in the fund is insufficient to fully compensate all municipalities that lost revenue as described
in subsection (5), payments from the fund must be prorated amongst those municipalities.
(7) As used in this section:
(a) “Fund” means the local government reimbursement fund created in subsection (1).
(b) “Municipality” means that term as defined in section 5 of the local community stabilization authority act,
2014 PA 86, MCL 123.1345.
2
This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives
Approved___________________________________________

____________________________________________________
Governor