MI HB5758

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

Expand authorized uses of sinking funds to include pupil transportation purposes, in addition to existing uses for real estate purchase, school building construction, and repair.

Require school districts levying sinking fund taxes to conduct annual independent audits and submit reports to the Department of Treasury reviewing uses of sinking fund revenues.

Impose penalty on school districts that misuse sinking fund revenues: they must repay misused funds from operating funds and are prohibited from levying future sinking fund taxes after determination of misuse.

Effective date is 90 days after enactment into law.