MI HB4046

Expands permissible uses of school district sinking fund taxes authorized on or after the bill's effective date to include purchasing school buses, in addition to existing uses for school buildings, security improvements, and technology acquisition or upgrading.

Reduces the maximum sinking fund tax rate from 5 mills to 3 mills for taxes authorized on or after the bill's effective date, while maintaining the 5 mill limit for previously authorized taxes.

Reduces the maximum levy period from 20 years to 10 years for sinking fund taxes authorized on or after the bill's effective date.

Requires school districts that levy sinking fund taxes to undergo annual independent audits of the fund and submit reports to the Department of Treasury; requires districts to repay misused funds and prohibits future sinking fund levies if misuse is found.

Defines "school security improvement" to include capital improvements designed to deter unauthorized entry or promote security, such as metal detectors, locks, cameras, and emergency communication applications, but excludes personnel and operational costs.