Michigan House Bill HB4952

Michigan 2025-2026 Regular Session

• Introduced: 9/16/25
• Refer: 9/16/25

Caption

Use tax: distribution; distribution of money to the local government reimbursement fund; modify. Amends sec. 21 of 1937 PA 94 (MCL 205.111).

Impact

The bill aims to ensure that the state school aid fund continues to receive financial support by compensating for any losses incurred from exemptions related to personal property. By setting specific amounts to be deposited into the local government reimbursement fund—starting with $75 million in 2024 and reducing to $25 million by 2026—it highlights the state’s commitment to supporting local governments financially. This change reflects an ongoing policy effort to stabilize financial resources for both education and local governance in Michigan.

Summary

House Bill 4952 is an amendment to the Use Tax Act of 1937, specifically focusing on the distribution of funds collected under this act. The bill updates Section 21 (MCL 205.111) to mandate the allocation of certain tax revenues to the state school aid fund and the local government reimbursement fund. This includes adjusting deposits based on the revenue lost due to property tax exemptions, ensuring that schools receive adequate funding despite exemptions from personal property taxes.

Contention

While the bill is designed to bolster funding for vital state programs, there may be concerns over which tax revenue sources are impacted and how these new allocations might affect local budgets. Critics could argue that while the amendments are intended to support schooling and local entities, they may place a strain on other areas of state funding. Additionally, as discussions around local government authority become more frequent, some stakeholders may perceive this as the state overstepping its bounds regarding local tax management.