MI HB5705

Allows cities with population of 600,000 or more to levy a utility users tax at rates between 1/4 of 1% and 5% by adopting a uniform ordinance.

Permits cities to pledge utility tax revenues to lighting authorities for bond repayment, allowing continued taxation even if population falls below 600,000.

Requires cities forming a lighting authority to pay $12,500,000 annually to that authority from tax proceeds, with remaining revenues returned to the city after bond debt service costs are covered.

Directs public utilities and resale customers to remit collected taxes to a trustee during bond repayment period, then return to the city within 45 days after debt retirement.

Makes all collected taxes a trust held for the benefit of the city or bondholders, preventing utilities from retaining collected amounts.