MI SB0358

Replaces the existing formula for calculating state school aid fund deposits from use tax revenue with a fixed annual transfer of $16,000,000 from the general fund to the state school aid fund, beginning fiscal year 2025-2026

Eliminates provisions requiring deposits to the state school aid fund based on revenue lost from personal property tax exemptions, data center equipment exemptions, and other specific exclusions under the Use Tax Act

Requires annual inflation adjustments to the $16,000,000 transfer starting fiscal year 2026-2027, based on the Consumer Price Index for all urban consumers, with no negative adjustments if CPI declines

Maintains existing provisions for aviation fuel tax distribution (35% to state aeronautics fund, 65% to qualified airport fund) and the $75,000,000 annual deposit to the local government reimbursement fund

Contingent on enactment of Senate Bill 357 of the 103rd Legislature (tie bar provision)