Corporate income tax: revenue distribution; earmark for the beverage container handling fund; provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695). TIE BAR WITH: SB 0416'25
Beginning from the 2022-2023 fiscal year through 2024-2025, it delineates substantial allocations aimed at community development. Up to $1.2 billion will be directed to the general fund, while additional earmarks include $50 million for the Michigan housing and community development fund and investments in revitalization and placemaking initiatives. These measures are expected to foster economic development and stimulate local economies within Michigan, effectively responding to community needs and potentially enhancing housing infrastructure.
Senate Bill 0417 seeks to amend section 695 of the Income Tax Act of 1967 to outline specific distributions of revenue collected from income taxes. The primary goal of this bill is to establish a clear earmarking of funds for various state programs and funds, while ensuring a portion is allocated to the general fund. For the 2021-2022 state fiscal year, the bill proposes that $800 million of collected revenue be appropriated to the Michigan taxpayer rebate fund, emphasizing the bill's focus on taxpayer returns and financial management within the state budget.
Senate Bill 0417 represents a significant shift in how Michigan intends to manage its income tax revenue, with an aim to bolster community development while upholding responsibilities towards taxpayers. However, the proposed structure of allocations may lead to debates concerning prioritization of funding, effectiveness in community support, and legislative dependencies that could influence the bill's viability in future sessions.
The bill is tied to other legislative measures, specifically requiring the enactment of Senate Bill 416 before becoming effective. This condition could generate discussion about the interconnectedness of state legislations and the necessity for coordinated legislative actions. Additionally, the annual adjustment of funds allocated for the beverage container handling fund highlights potential concerns regarding sustainability and environmental protection measures, which may attract divergent views from legislators focused on ecological impacts versus economic growth.