MI HB5437

Changes the calculation basis for sinking fund tax levies from "state equalized valuation" to "taxable value" of real and personal property in school districts.

Expands permissible uses of sinking funds to include purchasing school buses, in addition to the existing purposes of purchasing real estate and constructing or repairing school buildings.

Requires school districts that levy sinking fund taxes to conduct annual independent audits and submit audit reports to the Department of Treasury.

Imposes penalties on school districts found to have misused sinking funds, requiring repayment from operating funds and prohibiting future sinking fund tax levies.

Maintains existing requirements that sinking fund tax levies be subject to constitutional millage limitations and must be approved by school electors through ballot proposition.