Michigan House Bill HB4554

Michigan 2023-2024 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23
• Report Pass: 9/13/23
• Engrossed: 10/4/23
• Refer: 10/10/23
• Report Pass: 10/11/23
• Enrolled: 10/12/23
• Chaptered: 10/24/23
• Passed: 10/24/23

Caption

Use tax: distribution; distribution of money to the local government reimbursement fund; provide for. Amends sec. 21 of 1937 PA 94 (MCL 205.111). TIE BAR WITH: SB 0331'23, HB 4553'23

Impact

Should HB 4554 be enacted, it will have significant implications for the distribution of tax revenues collected within the state. A key aspect of the bill is the requirement that certain percentages of use tax collections, specifically from aviation fuel, will be designated for the state aeronautics fund and the qualified airport fund. Additionally, a stipulated amount of $75 million will be allocated annually to the local government reimbursement fund starting in the 2024 fiscal year, ensuring that local governments receive support from state tax revenues.

Summary

House Bill 4554 seeks to amend Michigan's 1937 Public Act 94, which pertains to the levy, assessment, and collection of a specific excise tax on the use, storage, or consumption of tangible personal property and certain services. The bill aims to clarify and provide a structured distribution of the revenues collected from the use tax, particularly funds designated for the state school aid fund and the local government reimbursement fund. It includes specific allocations of tax revenues generated from the use, storage, or consumption of aviation fuel, corresponding to the existing laws governing aeronautics funding in Michigan.

Sentiment

The sentiment surrounding HB 4554 appears to be positive, especially among legislators who support the ongoing funding of local governments and crucial infrastructure projects related to aviation. The allocation to the local government reimbursement fund is viewed favorably as it potentially alleviates budget constraints faced by local municipalities. However, while proponents see this as beneficial for local governance, the bill's navigation through various legislative channels may reveal contention as it intersects with broader discussions about state and local funding priorities.

Contention

One notable point of contention in the discussions around HB 4554 has been the allocation of funds from the use tax specifically concerning aviation fuel. Some lawmakers may feel that this funding could divert resources from other critical areas that also require adequate financial support. Furthermore, the specified amounts for local government reimbursement may provoke debates on whether the allocations are adequate to meet the needs of local governments, especially in light of increasing demands for services.