HB 5734 Summary

• Amends the General Sales Tax Act to redirect portions of sales tax collections to transportation funding for fiscal years 2015-2018 and beyond.

• For FY 2015-2017, allocates $125 million, $250 million, and $375 million respectively from the 4% sales tax to state trunk line fund (39.1%), county road commissions (39.1%), and cities/villages (21.8%).

• For FY 2018 and thereafter, allocates $500 million annually from the 4% sales tax using the same distribution percentages (39.1%, 39.1%, and 21.8%).

• Restricts all redirected transportation funds to maintaining, constructing, and reconstructing roads, streets, and bridges for private motor vehicles, prohibiting use for high-occupancy vehicle lanes, mass transit lanes, or lane reductions.

• Maintains existing distributions to state school aid fund (60% of 4% rate), local revenue sharing (15% of 4% rate), and comprehensive transportation fund (27.9% of 25% of 4% rate).