MI HB4075

Expands permissible uses of school sinking fund tax revenue authorized on or after March 29, 2017 to include purchasing school buses, in addition to existing uses of real estate purchase, construction, repair, school security improvements, and technology acquisition.

Eliminates caps on total spending for school bus purchases from sinking fund revenue, but prohibits use of funds for bus driver compensation or bus servicing and maintenance costs.

Reduces mill rate cap for sinking fund taxes authorized on or after March 29, 2017 from 5 mills to 3 mills.

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

Requires school districts levying sinking fund taxes to conduct annual independent audits and submit reports to the Department of Treasury; districts misusing funds must repay the amount from operating funds and lose authority to levy future sinking fund taxes.