Michigan Senate Bill SB0358

Michigan 2025-2026 Regular Session

• Introduced: 6/5/25
• Refer: 6/5/25
• Report Pass: 11/12/25
• Refer: 11/12/25
• Report Pass: 12/3/25
• Engrossed: 12/9/25
• Refer: 12/10/25

Caption

Use tax: distribution; disposition of money received and collected; revise. Amends sec. 21 of 1937 PA 94 (MCL 205.111). TIE BAR WITH: SB 0357'25

Impact

Should SB0358 be enacted, it will reinforce the state's commitment to boosting its aeronautics sector. Specifically, 35% of the use tax collections will be allocated to the state aeronautics fund for state-approved purposes, while the remaining 65% will support qualified airports. Furthermore, from the state share, the legislation mandates a minimum deposit of $75 million into a local government reimbursement fund starting in 2024. This financial structure not only provides much-needed resources for airport operations but also enhances overall state transportation strategies.

Summary

Senate Bill 0358 proposes an amendment to the existing Use Tax Act of 1937, specifically targeting the distribution of funds collected under the use tax on aviation fuel. The bill aims to revise the allocation process to ensure a significant portion of the collections is directed towards the state aeronautics fund and a qualified airport fund, which support aviation-related initiatives and infrastructure. By establishing a structured distribution mechanism, the bill intends to promote funding stability for these essential services.

Sentiment

The sentiment surrounding SB0358 appears to be predominantly positive, especially among lawmakers and aviation stakeholders who recognize the potential benefits of increased funding for state aeronautics. Advocates argue that the proposed distribution of funds will enhance transportation connectivity and support local economies reliant on aviation. However, there may also be concerns raised by fiscal conservatives about how additional funding is generated and the implications it may have on broader taxation policies.

Contention

There are notable points of contention regarding the bill, particularly surrounding the implications of establishing a new financial framework for tax collection and distribution. Critics may argue that redistributing taxes designated for other state needs could detract from other essential services, such as education or public health. While supporters emphasize the necessity of investing in aviation infrastructure, debates on prioritization among various state funding needs could be expected as discussions progress.