What is the difference between Constitutional vs. statutory revenue sharing?
Constitutional Portion: As the name suggests, this portion is guaranteed in the Michigan Constitution. It allocates a portion of the state sales tax to local units of government and is distributed on a per capita basis using the last decennial census to determine population. Statutory Portion: This component is provided for by legislative action. The Legislature has allocated an additional portion of the sales tax to be distributed to the local units, in lieu of the income and single business taxes no longer being collected. As of October 1, 1996, state shared revenues are distributed to local units in six bi-monthly payments.
