MI HB4376

Expands allowable uses of school district sinking fund taxes authorized on or after March 29, 2017 to include school security improvements, technology acquisition or upgrading, and purchasing school buses, in addition to existing uses for real estate purchase and school building construction or repair.

Reduces the maximum sinking fund tax rate from 5 mills to 3 mills for taxes authorized on or after March 29, 2017, while maintaining the 5 mill limit for previously authorized taxes.

Reduces the maximum levy period for new sinking fund taxes from 20 years to 10 years for taxes authorized on or after March 29, 2017.

Prohibits sinking fund tax revenues for school buses from being used for driver compensation or bus servicing and maintenance costs, with no cap imposed on total school bus purchases.

Requires annual independent audits of sinking funds submitted to the Department of Treasury, with penalties including repayment from operating funds and prohibition on future sinking fund taxes if misuse is found.