The State Revenue Sharing program distributes sales tax collected by the State of Michigan to local governments as unrestricted revenues. In addition, the act authorizes the appropriation and distribution of state General Fund-General Purpose revenues when local governments qualify for certain supplemental payments.
Constitutional sales is distributed on a per capita basis.
Population Unit Type Yield Equalization Percent share of FY 98 is part of the phase-out of the old formula payments. Statewide Total Distributed to determine their Percent Share Factor. In each bimonthly distribution, a statewide total amount available for distribution is multiplied by the Percent Share to arrive at the payment amount. The Per Capita Taxable Value formula compares the statewide average taxable value per capita to the taxable value per capita for the individual unit. Taxable value per capita is used because it is viewed as a gauge of a community's ability to raise revenue, and is seen as a measure of wealth.