Senate Bill 1048 Summary

• Amends the General Sales Tax Act to create a new allocation mechanism for sales tax collections on aviation fuel and aviation products beginning in fiscal year 2013.

• Directs all collections from the 4% sales tax on aviation fuel and aviation products to be deposited into the state aeronautics fund for purposes authorized under Michigan's aeronautics code (1945 PA 327, MCL 259.1 to 259.208).

• Requires a minimum of $10,000,000 to be deposited annually into the state aeronautics fund under this new provision.

• Maintains existing allocations: 15% of 4% tax rate to local governments via revenue sharing, 60% of 4% tax rate plus all 2% tax collections to the state school aid fund, and remaining portions to the comprehensive transportation fund and state general fund as previously established.