Michigan House Bill HB5107

Michigan 2023-2024 Regular Session

• Introduced: 10/5/23
• Refer: 10/5/23
• Report Pass: 10/31/23

Caption

State management: funds; reference to strategic outreach and attraction reserve fund in income tax act of 1967; modify. Amends sec. 695 of 1967 PA 281 (MCL 206.695). TIE BAR WITH: HB 5106'23

Impact

Beginning with the fiscal year 2022-2023 through 2024-2025, the bill continues to allocate up to $1.2 billion to the general fund, while also establishing allocations for housing and community development. Additionally, it sets up provisions for depositing into both the revitalization fund and the strategic outreach and attraction reserve fund. This structured distribution aims to enhance state-funded initiatives that prioritize housing development and bolster community resources amidst ongoing economic changes.

Summary

House Bill 5107 seeks to amend the Income Tax Act of 1967 by revising the distribution of revenue collected from state taxes. Specifically, it outlines how tax revenues will be allocated for fiscal years starting 2022 through 2025, with a significant portion directed towards the general fund and designated funds aimed at community development and revitalization efforts. The bill specifies that for the fiscal year 2021-2022, a one-time allocation of $800 million will be deposited into the Michigan taxpayer rebate fund, a move that is expected to provide financial relief to taxpayers.

Contention

While supporters of HB 5107 argue that it will provide necessary funding for vital community projects and taxpayer benefits, critics may express concerns regarding the reliance on tax revenue for these allocations. Opponents may argue that potential fluctuations in economic conditions could jeopardize the stability of these funds. Furthermore, some may view the direct tie to other legislative measures, such as Senate Bill No. 5106, as problematic, making the enactment of this bill contingent upon the approval of additional legislation.