SB 144

This bill directs the department of transportation to study transportation infrastructure needs, costs, and funding sources for the years 2026, 2050, and 2075 and report its findings and recommendations to legislative committees by December 1, 2025. In conducting the study, the department must consider (i) existing sources of revenue dedicated to transportation infrastructure, including the high w ay fund; (ii) potential sources of existing revenue not dedicated to transportation but derived substantially from transportation activities; and (iii) the impact of the transportation equity trust fund on transportation infrastructure needs. TRANSPORTATI ON EQUITY TRUST FUND This bill requires all revenues received from the sale, use, consumption, distribution, or storage for use or consumption of new or used motor vehicles and new or used tires on or after July 1, 2025, to be allocated to and deposited in the highway fund. Additionally, this bill provides that 1% must be subtracted from the 29.0141% that is designated for distribution to the general fund, to be distributed to the department of transportation for expenses of administration prior to the d istribution to the general fund under present law. However, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes under present law for local education agencies on a per pupil basis for non r ecurring items such as supplies, textbooks, and equipment and general education purposes, and no portion of the revenue derived from the increase in the rate of sales and use tax from 6% to 7% from the tax levied on the sale of tangible personal property a t retail, must be apportioned and distributed pursuant to this bill. In those situations, the revenue must be allocated as provided in present law. ON APRIL 21, 2025, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 969, AS AMENDED. AMENDMENT #2 r ewrites this bill to require that all monies received under the sales and use tax from the sale, use, consumption, or distribution of new or used tires on or after July 1, 2025, must be earmarked and allocated to the highway fund. Such requirement will no t apply to revenue generated from the 0.5% increase in the sales and use tax rate that became effective April 1, 1992 , and which is presently earmarked for education, and revenue derived from the increase in the rate of sales and use tax from 6% to 7% purs uant to chapter 856 of the Public Acts of 2002.