HOUSE BILL NO. 5296

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 695 (MCL 206.695), as amended by 2025 PA 24.

the people of the state of michigan enact:

Sec. 695. (1) Beginning with the 2022-2023 state fiscal year through the 2023-2024 state fiscal year, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $50,000,000.00, if available, to the revitalization and placemaking fund created in section 696.

(d) After the deposits under subdivisions (a), (b), and (c), up to $500,000,000.00, if available, to the strategic outreach and attraction reserve fund created in former section 4 of the Michigan trust fund act, 2000 PA 489. , MCL 12.254.

(e) The balance of any revenue collected under this part after the deposits under subdivisions (a), (b), (c), and (d), to the general fund.

(2) For 2024-2025 state fiscal year only, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $50,000,000.00, if available, to the revitalization and placemaking fund created in section 696.

(d) After the deposits under subdivisions (a), (b), and (c), up to $250,000,000.00, if available, to the healthy Michigan fund created in section 5953 of the public health code, 1978 PA 368, MCL 333.5953.

(e) The balance of any revenue collected under this part after the deposits under subdivisions (a), (b), (c), and (d), to the general fund.

(3) For the 2025-2026 state fiscal year only, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $688,000,000.00, if available, to the neighborhood road roads fund created in section 13c of 1951 PA 51, MCL 247.663c.

(d) The balance of the revenue collected under this part after the deposits under subdivisions (a) through (c) to the general fund.

(4) For the 2026-2027 state fiscal year only, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $776,000,000.00, if available, to the neighborhood road roads fund created in section 13c of 1951 PA 51, MCL 247.663c.

(d) The balance of the revenue collected under this part after the deposits under subdivisions (a) through (c) to the general fund.

(5) For the 2027-2028 state fiscal year only, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $864,000,000.00, if available, to the neighborhood road roads fund created in section 13c of 1951 PA 51, MCL 247.663c.

(d) The balance of the revenue collected under this part after the deposits under subdivisions (a) through (c) to the general fund.

(6) For the 2028-2029 state fiscal year only, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $952,000,000.00, if available, to the neighborhood road roads fund created in section 13c of 1951 PA 51, MCL 247.663c.

(d) The balance of the revenue collected under this part after the deposits under subdivisions (a) through (c) to the general fund.

(7) Beginning with the 2029-2030 state fiscal year, from the tax levied under this part, the revenue collected under this part must be deposited in the following manner:

(a) Up to $1,200,000,000.00 to the general fund.

(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.

(c) After the deposits under subdivisions (a) and (b), up to $1,040,000,000.00, if available, to the neighborhood road roads fund created in section 13c of 1951 PA 51, MCL 247.663c.

(d) The balance of the revenue collected under this part after the deposits under subdivisions (a) through (c) to the general fund.

Enacting section 1. This amendatory act does not take effect unless House Bill No. 5294 (request no. H05252'25) of the 103rd Legislature is enacted into law.