HOUSE BILL No. 4492 March 20, 2001, Introduced by Reps. Shackleton, Allen, Gosselin, Sheltrown and Julian and referred to the Committee on Appropriations. A bill to amend 1971 PA 140, entitled "Glenn Steil state revenue sharing act of 1971," by amending sections 11 and 13 (MCL 141.911 and 141.913), as amended by 1998 PA 532. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1) For state fiscal years before the 1996-1997 2 state fiscal year, the department of management and budget shall 3 cause to be paid during each August, November, February, and May, 4 to counties on a per capita basis the collections from the state 5 income tax as certified by the department of treasury for the 6 quarter periods ending the prior June 30, September 30, December 7 31, and March 31 that are available for distribution to and 8 retention by counties. 9 (2) For state fiscal years beginning after September 30, 10 1992 and ending before October 1, 1996, the collections from the 00403'01 KDD 2 1 state income tax otherwise available for distribution to counties 2 in November for the quarter period ending the prior September 30 3 shall be increased by $35,900,000.00 and the collections from the 4 state income tax otherwise available for distribution to counties 5 in August for the quarter period ending the prior June 30 shall 6 be decreased by $35,900,000.00. 7 (3) For the 1996-1997 and 1997-1998 state fiscal years, the 8 department of treasury shall cause to be paid to counties on a 9 per capita basis an amount equal to 24.5% of the difference 10 between 21.3% of the sales tax collections at a rate of 4% in the 11 12-month period ending June 30 of the state fiscal year in which 12 the payments are made and the total distribution for the state 13 fiscal year under section 12a. Subject to section 13d, for the 14 1998-1999 through2005-20062000-2001 state fiscal years,and15for the period of October 1, 2006 through June 30, 2007,the 16 department of treasury shall cause to be paid to counties both of 17 the following: 18 (a) An amount equal to the amount the county was eligible to 19 receive under section 12a in the 1997-1998 state fiscal year. 20 (b) An amount equal to 25.06% of 21.3% of the sales tax col- 21 lections at a rate of 4% in the 12-month period ending June 30 of 22 the state fiscal year in which the payments are made minus the 23 amount determined under subdivision (a), which REMAINDER shall be 24 distributed on a per capita basis. If the amount appropriated 25 under this section to counties is less than 25.06% of 21.3% of 26 the sales tax rate of 4%, any reduction made necessary by this 00403'01 3 1 appropriation in distributions to counties shall first be applied 2 to the distribution under this subdivision. 3(4) After June 30, 2007, 25.06% of 21.3% of the sales tax4collections at a rate of 4% shall be distributed to counties as5provided by law.6 (4) FOR STATE FISCAL YEARS AFTER THE 2000-2001 STATE FISCAL 7 YEAR, THE DEPARTMENT OF TREASURY SHALL CAUSE TO BE PAID TO COUN- 8 TIES AN AMOUNT EQUAL TO 25.06% OF 21.3% OF THE SALES TAX COLLEC- 9 TIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 OF 10 THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE MADE WHICH SHALL 11 BE BASED ON THE SUM OF THE AMOUNTS DETERMINED UNDER 12 SUBDIVISIONS (B) AND (C) AS FOLLOWS: 13 (A) DETERMINE THE TOTAL INVENTORY AMOUNT WHICH IS THE SUM OF 14 ALL PAYMENTS UNDER SECTION 12A FOR ALL COUNTIES FOR THE 1997-1998 15 STATE FISCAL YEAR. 16 (B) DETERMINE THE COUNTY INVENTORY PAYMENT FOR EACH COUNTY 17 FOR THE FOLLOWING YEARS AS FOLLOWS: 18 (i) FOR THE 2001-2002 STATE FISCAL YEAR, 83.3% OF THE TOTAL 19 INVENTORY AMOUNT SHALL BE DISTRIBUTED SO THAT EACH COUNTY GETS 20 83.3% OF THE AMOUNT THAT COUNTY RECEIVED IN THE 1997-1998 STATE 21 FISCAL YEAR AND 16.7% OF THE TOTAL INVENTORY AMOUNT SHALL BE DIS- 22 TRIBUTED TO THE COUNTIES ON A PER CAPITA BASIS. 23 (ii) FOR THE 2002-2003 STATE FISCAL YEAR, 66.7% OF THE TOTAL 24 INVENTORY AMOUNT SHALL BE DISTRIBUTED SO THAT EACH COUNTY GETS 25 66.7% OF THE AMOUNT THAT COUNTY RECEIVED IN THE 1997-1998 STATE 26 FISCAL YEAR AND 33.3% OF THE TOTAL INVENTORY AMOUNT SHALL BE 27 DISTRIBUTED TO COUNTIES ON A PER CAPITA BASIS. 00403'01 4 1 (iii) FOR THE 2003-2004 STATE FISCAL YEAR, 50% OF THE TOTAL 2 INVENTORY AMOUNT SHALL BE DISTRIBUTED SO THAT EACH COUNTY GETS 3 50% OF THE AMOUNT THAT COUNTY RECEIVED IN THE 1997-1998 STATE 4 FISCAL YEAR AND 50% OF THE TOTAL INVENTORY AMOUNT SHALL BE DIS- 5 TRIBUTED TO COUNTIES ON A PER CAPITA BASIS. 6 (iv) FOR THE 2004-2005 STATE FISCAL YEAR, 33.3% OF THE TOTAL 7 INVENTORY AMOUNT SHALL BE DISTRIBUTED SO THAT EACH COUNTY GETS 8 33.3% OF THE AMOUNT THAT COUNTY RECEIVED IN THE 1997-1998 STATE 9 FISCAL YEAR AND 66.7% OF THE TOTAL INVENTORY AMOUNT SHALL BE DIS- 10 TRIBUTED TO COUNTIES ON A PER CAPITA BASIS. 11 (v) FOR THE 2005-2006 STATE FISCAL YEAR, 16.7% OF THE TOTAL 12 INVENTORY AMOUNT SHALL BE DISTRIBUTED SO THAT EACH COUNTY GETS 13 16.7% OF THE AMOUNT THAT COUNTY RECEIVED IN THE 1997-1998 STATE 14 FISCAL YEAR AND 83.3% OF THE TOTAL INVENTORY AMOUNT SHALL BE DIS- 15 TRIBUTED TO COUNTIES ON A PER CAPITA BASIS. 16 (vi) FOR THE 2006-2007 STATE FISCAL YEAR AND EACH STATE 17 FISCAL YEAR AFTER THE 2006-2007 STATE FISCAL YEAR, 100% OF THE 18 TOTAL INVENTORY AMOUNT SHALL BE DISTRIBUTED TO COUNTIES ON A PER 19 CAPITA BASIS. 20 (C) DETERMINE THE COUNTY PER CAPITA PAYMENT BY SUBTRACTING 21 THE TOTAL INVENTORY AMOUNT FROM 25.06% OF 21.3% OF THE SALES TAX 22 COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 23 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE MADE. THE 24 AMOUNT DETERMINED UNDER THIS SUBDIVISION SHALL BE DISTRIBUTED ON 25 A PER CAPITA BASIS. 26 (5) The payments undersubsection (3)SUBSECTIONS (3) AND 27 (4) shall be made from revenues collected during the state fiscal 00403'01 5 1 year in which the payments are made and shall be made during each 2 October, December, February, April, June, and August. Payments 3 shall be based on collections from the sales tax at a rate of 4% 4 in the 2-month period ending the prior August 31, October 31, 5 December 31, February 28, April 30, and June 30, and for the 6 1996-1997 and 1997-1998 state fiscal years only the payments 7 shall be reduced by 1/6 of the total distribution for the state 8 fiscal year under section 12a. For state fiscal years after the 9 1995-1996 state fiscal year, the collections from the sales tax 10 otherwise available for distribution to counties under 11subsection (3)SUBSECTIONS (3) AND (4) in December shall be 12 increased by $17,000,000.00 and the collections from the sales 13 tax otherwise available for distribution to counties under 14subsection (3)SUBSECTIONS (3) AND (4) in April shall be 15 decreased by $17,000,000.00. 16 Sec. 13. (1) This subsection and subsection (2) apply to 17 distributions to cities, villages, and townships during the state 18 fiscal years before the 1996-1997 state fiscal year of collec- 19 tions from the state income tax and single business tax. Except 20 as otherwise provided in subsection (2), the department of trea- 21 sury shall cause to be paid to each city, village, and township 22 its share, computed in accordance with the tax effort formula, of 23 the following revenues: 24 (a) During each August, November, February, and May, the 25 collections from the state income tax for the quarter periods 26 ending the prior June 30, September 30, December 31, and March 31 27 that are available for distribution to cities, villages, and 00403'01 6 1 townships under the income tax act of 1967, 1967 PA 281, MCL 2 206.1 to 206.532. 3 (b) The amount of the collections from the single business 4 tax available for distribution to cities, villages, and townships 5 under former section 136 of the single business tax act, 1975 PA 6 228. 7 (2) The amount of collections of the state income tax other- 8 wise available for distribution to cities, villages, and town- 9 ships in November, February, and May, computed in accordance with 10 the tax effort formula, shall be increased by $22,600,000.00. 11 The amount of collections otherwise available for distribution to 12 cities, villages, and townships in August, computed in accordance 13 with the tax effort formula, shall be decreased by 14 $67,800,000.00. 15 (3) This subsection applies to distributions to cities, vil- 16 lages, and townships for the 1996-1997 state fiscal year. The 17 department shall cause to be paid in accordance with the tax 18 effort formula an amount equal to 75.5% of the difference between 19 21.3% of the sales tax collections at a rate of 4% in the 20 12-month period ending June 30 of the state fiscal year in which 21 the payments are made and the total distribution for the state 22 fiscal year under section 12a. 23 (4) The department of treasury shall cause to be paid during 24 the 1997-1998 state fiscal year an amount equal to 75.5% of the 25 difference between 21.3% of the sales tax collections at a rate 26 of 4% in the 12-month period ending June 30 of the state fiscal 27 year in which the payments are made and the total distribution 00403'01 7 1 for the state fiscal year under section 12a, both of the 2 following: 3 (a) To each city, village, and township, the amount of col- 4 lections distributed under subsection (3) to cities, villages, 5 and townships for the 1996-1997 state fiscal year or its pro rata 6 share of the collections if the collections are less than the 7 amount of collections distributed under subsection (3) for the 8 1996-1997 state fiscal year. A city's, village's, or township's 9 share of revenues under this subdivision shall be computed using 10 the tax effort formula. 11 (b) To each city, village, and township its share of the 12 collections to the extent the total collections available for 13 distribution under this subsection exceed the amount distributed 14 to cities, villages, and townships under subdivision (a) for the 15 fiscal year. A city's, village's, or township's share of reve- 16 nues under this subdivision shall be computed on a per capita 17 basis. 18 (5) Subject to section 13d, for the 1998-1999 through 192005-20062000-2001 state fiscal years,and for the period of20October 1, 2006 through June 30, 2007,the department of trea- 21 sury shall cause distributions determined under subsections (6) 22 to (13) to be paid to each city, village, and township from an 23 amount equal to 74.94% of 21.3% of the sales tax collections at a 24 rate of 4% in the 12-month period ending June 30 of the state 25 fiscal year in which the payments are made.After June 30,262007, 74.94% of 21.3% of sales tax collections at a rate of 4%00403'01 8 1shall be distributed to cities, villages, and townships as2provided by law.3 (6) Subject to section 13d, for the 1998-1999 through 42005-20062000-2001 state fiscal yearsand for the period of5October 1, 2006 through June 30, 2007and except as provided in 6 subsection (15), the department of treasury shall cause to be 7 paid $333,900,000.00 to a city with a population of 750,000 or 8 more as the total combined distribution under this act and sec- 9 tion 10 of article IX of the state constitution of 1963 as annua- 10 lized for any period of less than 12 months to that city. 11 (7) Distributions under subsections (8) to (13) to cities, 12 villages, and townships with populations of less than 750,000 13 shall be made from the amount available for distribution under 14 this section that remains after the distribution under subsection 15 (6) is made. 16 (8) Subject to section 13d, for the 1998-1999 through 172005-20062000-2001 state fiscal years,and for the period of18October 1, 2006 through June 30, 2007,for cities, villages, and 19 townships with populations of less than 750,000, subject to the 20 limitations under this section, a taxable value payment shall be 21 made to each city, village, and township determined as follows: 22 (a) Determine the per capita taxable value for each city, 23 village, and township by dividing the taxable value of that city, 24 village, or township by the population of that city, village, or 25 township. 26 (b) Determine the statewide per capita taxable value by 27 dividing the total taxable value of all cities, villages, and 00403'01 9 1 townships by the total population of all cities, villages, and 2 townships. 3 (c) Determine the per capita taxable value ratio for each 4 city, village, and township by dividing the statewide per capita 5 taxable value by the per capita taxable value for that city, vil- 6 lage, or township. 7 (d) Determine the adjusted taxable value population for each 8 city, village, and township by multiplying the per capita taxable 9 value ratio as determined under subdivision (c) for that city, 10 village, or township by the population of that city, village, or 11 township. 12 (e) Determine the total statewide adjusted taxable value 13 population which is the sum of all adjusted taxable value popula- 14 tion for all cities, villages, and townships. 15 (f) Determine the taxable value payment rate by dividing 16 74.94% of 21.3% of the sales tax collections at a rate of 4% in 17 the 12-month period ending June 30 of the state fiscal year in 18 which the payments under this subsection are made by 3, and 19 dividing that result by the total statewide adjusted taxable 20 value population as determined under subdivision (e). 21 (g) Determine the taxable value payment for each city, vil- 22 lage, and township by multiplying the result under 23 subdivision (f) by the adjusted taxable value population for that 24 city, village, or township. 25 (9) Subject to section 13d, for the 1998-1999 through 262005-20062000-2001 state fiscal years,and for the period of27October 1, 2006 through June 30, 2007,subject to the 00403'01 10 1 limitations under this section and except as provided in 2 subsection (14), a unit type population payment shall be made to 3 each city, village, and township with a population of less than 4 750,000 determined as follows: 5 (a) Determine the unit type population weight factor for 6 each city, village, and township as follows: 7 (i) For a township with a population of 5,000 or less, the 8 unit type population weight factor is 1.0. 9 (ii) For a township with a population of more than 5,000 but 10 less than 10,001, the unit type population weight factor is 1.2. 11 (iii) For a township with a population of more than 10,000 12 but less than 20,001, the unit type population weight factor is 13 1.44. 14 (iv) For a township with a population of more than 20,000 15 but less than 40,001, the unit type population weight factor is 16 1.73. 17 (v) For a township with a population of more than 40,000 but 18 less than 80,001, the unit type population weight factor is 19 2.07. 20 (vi) For a township with a population of more than 80,000, 21 the unit type population weight factor is 2.49. 22 (vii) For a village with a population of 5,000 or less, the 23 unit type population weight factor is 1.5. 24 (viii) For a village with a population of more than 5,000 25 but less than 10,001, the unit type population weight factor is 26 1.8. 00403'01 11 1 (ix) For a village with a population of more than 10,000, 2 the unit type population weight factor is 2.16. 3 (x) For a city with a population of 5,000 or less, the unit 4 type population weight factor is 2.5. 5 (xi) For a city with a population of more than 5,000 but 6 less than 10,001, the unit type population weight factor is 3.0. 7 (xii) For a city with a population of more than 10,000 but 8 less than 20,001, the unit type population weight factor is 3.6. 9 (xiii) For a city with a population of more than 20,000 but 10 less than 40,001, the unit type population weight factor is 11 4.32. 12 (xiv) For a city with a population of more than 40,000 but 13 less than 80,001, the unit type population weight factor is 14 5.18. 15 (xv) For a city with a population of more than 80,000 but 16 less than 160,001, the unit type population weight factor is 17 6.22. 18 (xvi) For a city with a population of more than 160,000 but 19 less than 320,001, the unit type population weight factor is 20 7.46. 21 (xvii) For a city with a population of more than 320,000 but 22 less than 640,001, the unit type population weight factor is 23 8.96. 24 (xviii) For a city with a population of more than 640,000, 25 the unit type population weight factor is 10.75. 26 (b) Determine the adjusted unit type population for each 27 city, village, and township by multiplying the unit type 00403'01 12 1 population weight factor for that city, village, or township as 2 determined under subdivision (a) by the population of the city, 3 village, or township. 4 (c) Determine the total statewide adjusted unit type popula- 5 tion, which is the sum of the adjusted unit type population for 6 all cities, villages, and townships. 7 (d) Determine the unit type population payment rate by 8 dividing 74.94% of 21.3% of the sales tax collections at a rate 9 of 4% in the 12-month period ending June 30 of the state fiscal 10 year in which the payments under this subsection are made by 3, 11 and then dividing that result by the total statewide adjusted 12 unit type population as determined under subdivision (c). 13 (e) Determine the unit type population payment for each 14 city, village, and township by multiplying the result under sub- 15 division (d) by the adjusted unit type population for that city, 16 village, or township. 17 (10) Subject to section 13d, for the 1998-1999 through 182005-20062000-2001 state fiscal years,and for the period of19October 1, 2006 through June 30, 2007,subject to the limita- 20 tions under this section, a yield equalization payment shall be 21 made to each city, village, and township with a population of 22 less than 750,000 sufficient to provide the guaranteed tax base 23 for a local tax effort not to exceed 0.02. The payment shall be 24 determined as follows: 25 (a) The guaranteed tax base is the maximum combined state 26 and local per capita taxable value that can be guaranteed in a 27 state fiscal year to each city, village, and township for a local 00403'01 13 1 tax effort not to exceed 0.02 if an amount equal to 74.94% of 2 21.3% of the state sales tax at a rate of 4% is distributed to 3 cities, villages, and townships whose per capita taxable value is 4 below the guaranteed tax base. 5 (b) The full yield equalization payment to each city, vil- 6 lage, and township is the product of the amounts determined under 7 subparagraphs (i) and (ii): 8 (i) An amount greater than zero that is equal to the differ- 9 ence between the guaranteed tax base determined in 10 subdivision (a) and the per capita taxable value of the city, 11 village, or township. 12 (ii) The local tax effort of the city, village, or township, 13 not to exceed 0.02, multiplied by the population of that city, 14 village, or township. 15 (c) The yield equalization payment is the full yield equali- 16 zation payment divided by 3. 17 (11) For THE 1998-1999 THROUGH 2000-2001 state fiscal years, 18after the 1997-1998 state fiscal year,distributions under this 19 section for cities, villages, and townships with populations of 20 less than 750,000 shall be determined as follows: 21 (a) For the 1998-1999 state fiscal year, the payment under 22 this section for each city, village, and township shall be the 23 sum of the following: 24 (i) Ninety percent of the total amount available for distri- 25 bution under subsections (8), (9), and (10) for the 1998-1999 26 state fiscal year multiplied by the city's, village's, or 27 township's percentage share of the distributions under this 00403'01 14 1 section and section 12a minus the amount of a distribution under 2 this section and section 12a to a city that is eligible to 3 receive a distribution under subsection (6) in the 1997-1998 4 state fiscal year. 5 (ii) Ten percent of the total amount available for distribu- 6 tion under subsections (8), (9), and (10) for the 1998-1999 state 7 fiscal year multiplied by the percentage share of the distribu- 8 tion amounts calculated under subsections (8), (9), and (10). 9 (b) For the 1999-2000 state fiscal year, the payment under 10 this section for each city, village, and township shall be the 11 sum of the following: 12 (i) Eighty percent of the total amount available for distri- 13 bution under subsections (8), (9), and (10) for the 1999-2000 14 state fiscal year multiplied by the city's, village's, or 15 township's percentage share of the distributions under this sec- 16 tion and section 12a minus the amount of a distribution under 17 this section and section 12a to a city that is eligible to 18 receive a distribution under subsection (6) in the 1997-1998 19 state fiscal year. 20 (ii) Twenty percent of the total amount available for dis- 21 tribution under subsections (8), (9), and (10) for the 1999-2000 22 state fiscal year multiplied by the city's, village's, or 23 township's percentage share of the distribution amounts calcu- 24 lated under subsections (8), (9), and (10). 25 (c) For the 2000-2001 state fiscal year, the payment under 26 this section for each city, village, and township shall be the 27 sum of the following: 00403'01 15 1 (i) Seventy percent of the total amount available for 2 distribution under subsections (8), (9), and (10) for the 3 2000-2001 state fiscal year multiplied by the city's, village's, 4 or township's percentage share of the distributions under this 5 section and section 12a minus the amount of a distribution under 6 this section and section 12a to a city that is eligible to 7 receive a distribution under subsection (6) in the 1997-1998 8 state fiscal year. 9 (ii) Thirty percent of the total amount available for dis- 10 tribution under subsections (8), (9), and (10) for the 2000-2001 11 state fiscal year multiplied by the percentage share of the dis- 12 tribution amounts calculated under subsections (8), (9), and 13 (10). 14(d) For the 2001-2002 state fiscal year, the payment under15this section for each city, village, and township shall be the16sum of the following:17(i) Sixty percent of the total amount available for distri-18bution under subsections (8), (9), and (10) for the 2001-200219state fiscal year multiplied by the city's, village's, or20township's percentage share of the distributions under this sec-21tion and section 12a minus the amount of a distribution under22this section and section 12a to a city that is eligible to23receive a distribution under subsection (6) in the 1997-199824state fiscal year.25(ii) Forty percent of the total amount available for distri-26bution under subsections (8), (9), and (10) for the 2001-200227state fiscal year multiplied by the percentage share of the00403'01 16 1distribution amounts calculated under subsections (8), (9), and2(10).3(e) For the 2002-2003 state fiscal year, the payment under4this section for each city, village, and township shall be the5sum of the following:6(i) Fifty percent of the total amount available for distri-7bution under subsections (8), (9), and (10) for the 2002-20038state fiscal year multiplied by the city's, village's, or9township's percentage share of the distributions under this sec-10tion and section 12a minus the amount of a distribution under11this section and section 12a to a city that is eligible to12receive a distribution under subsection (6) in the 1997-199813state fiscal year.14(ii) Fifty percent of the total amount available for distri-15bution under subsections (8), (9), and (10) for the 2002-200316state fiscal year multiplied by the percentage share of the dis-17tribution amounts calculated under subsections (8), (9), and18(10).19(f) For the 2003-2004 state fiscal year, the payment under20this section for each city, village, and township shall be the21sum of the following:22(i) Forty percent of the total amount available for distri-23bution under subsections (8), (9), and (10) for the 2003-200424state fiscal year multiplied by the city's, village's, or25township's percentage share of the distributions under this sec-26tion and section 12a minus the amount of a distribution under27this section and section 12a to a city that is eligible to00403'01 17 1receive a distribution under subsection (6) in the 1997-19982state fiscal year.3(ii) Sixty percent of the total amount available for distri-4bution under subsections (8), (9), and (10) for the 2003-20045state fiscal year multiplied by the percentage share of the dis-6tribution amounts calculated under subsections (8), (9), and7(10).8(g) For the 2004-2005 state fiscal year, the payment under9this section for each city, village, and township shall be the10sum of the following:11(i) Thirty percent of the total amount available for distri-12bution under subsections (8), (9), and (10) for the 2004-200513state fiscal year multiplied by the city's, village's, or14township's percentage share of the distributions under this sec-15tion and section 12a minus the amount of a distribution under16this section and section 12a to a city that is eligible to17receive a distribution under subsection (6) in the 1997-199818state fiscal year.19(ii) Seventy percent of the total amount available for dis-20tribution under subsections (8), (9), and (10) for the 2004-200521state fiscal year multiplied by the percentage share of the dis-22tribution amounts calculated under subsections (8), (9), and23(10).24(h) For the 2005-2006 state fiscal year, the payment under25this section for each city, village, and township shall be the26sum of the following:00403'01 18 1(i) Twenty percent of the total amount available for2distribution under subsections (8), (9), and (10) for the32005-2006 state fiscal year multiplied by the city's, village's,4or township's percentage share of the distributions under this5section and section 12a minus the amount of a distribution under6this section and section 12a to a city that is eligible to7receive a distribution under subsection (6) in the 1997-19988state fiscal year.9(ii) Eighty percent of the total amount available for dis-10tribution under subsections (8), (9), and (10) for the 2005-200611state fiscal year multiplied by the percentage share of the dis-12tribution amounts calculated under subsections (8), (9), and13(10).14(i) For the period of October 1, 2006 through June 30, 2007,15the payment under this section for each city, village, and town-16ship shall be the sum of the following:17(i) Ten percent of the total amount available for distribu-18tion under subsections (8), (9), and (10) for the 2006-2007 state19fiscal year multiplied by the city's, village's, or township's20percentage share of the distributions under this section and sec-21tion 12a minus the amount of a distribution under this section22and section 12a to a city that is eligible to receive a distribu-23tion under subsection (6) in the 1997-1998 state fiscal year.24(ii) Ninety percent of the total amount available for dis-25tribution under subsections (8), (9), and (10) for the 2006-200726state fiscal year multiplied by the percentage share of the00403'01 19 1distribution amounts calculated under subsections (8), (9), and2(10).3 (12) Except as otherwise provided in this subsection FOR 4 STATE FISCAL YEARS BEFORE THE 2001-2002 STATE FISCAL YEAR, the 5 total payment to any city, village, or township under this act 6 and section 10 of article IX of the state constitution of 1963 7 shall not increase by more than 8% over the amount of the payment 8 under this act and section 10 of article IX of the state consti- 9 tution of 1963 in the immediately preceding state fiscal year. 10 From the amount not distributed because of the limitation imposed 11 by this subsection, the department shall distribute an amount to 12 certain cities, villages, and townships such that the percentage 13 increase in the total payment under this act and section 10 of 14 article IX of the state constitution of 1963 from the immediately 15 preceding state fiscal year to each of those cities, villages, 16 and townships is equal to, but does not exceed, the percentage 17 increase from the immediately preceding state fiscal year of any 18 city, village, or township that does not receive a distribution 19 under this subsection.This subsection does not apply for state20fiscal years after the 2000 federal decennial census becomes21official to a city, village, or township with a 10% or more22increase in population from the official 1990 federal decennial23census to the official 2000 federal decennial census.24 (13) The percentage allocations to distributions under sub- 25 sections (8) to (10) pursuant to subsection (11) shall be calcu- 26 lated as if, in any state fiscal year, the amount appropriated 27 under this section for distribution to cities, villages, and 00403'01 20 1 townships is 74.94% of 21.3% of the sales tax at a rate of 4%. 2 If the amount appropriated under this section to cities, vil- 3 lages, and townships is less than 74.94% of 21.3% of the sales 4 tax at a rate of 4%, any reduction made necessary by this appro- 5 priation in distributions to cities, villages, and townships 6 shall first be applied to the distribution under subsections (8) 7 to (10) and any remaining amount shall be applied to the other 8 distributions under this section. 9 (14)AFOR A STATE FISCAL YEAR BEFORE THE 2001-2002 STATE 10 FISCAL YEAR IN WHICH A townshipthatprovides for or makes 11 available fire, police on a 24-hour basis either through con- 12 tracting for or directly employing personnel, water to 50% or 13 more of its residents, and sewer services to 50% or more of its 14 residents and has a population of 10,000 or more or a township 15 that has a population of 20,000 or more, THE TOWNSHIP shall use 16 the unit type population weight factor under subsection (9)(a) 17 for a city with the same population as the township. 18 (15) For a state fiscal year BEFORE THE 2001-2002 STATE 19 FISCAL YEAR in which the sales tax collections decrease from the 20 sales tax collections for the immediately preceding state fiscal 21 year, the department shall reduce the amount to be distributed to 22 a city with a population of 750,000 or more under subsection (6) 23 by an amount determined by subtracting the amount the city is 24 eligible for under section 10 of article IX of the state consti- 25 tution of 1963 for the state fiscal year from $333,900,000.00 and 26 multiplying that result by the same percentage as the percentage 27 decrease in sales tax collections for that state fiscal year as 00403'01 21 1 compared to sales tax collections for the immediately preceding 2 state fiscal year. 3 (16) Notwithstanding any other provision of this section, 4 for the 1998-1999 state fiscal year,the total combined amount 5 received by each city, village, and township under this section 6 and section 10 of article IX of the state constitution of 1963 7 shall not be less than the combined amount received under this 8 section, section 12a, and section 10 of article IX of the state 9 constitution of 1963 in the 1997-1998 state fiscal year. The 10 increase, if any, for each city, village, and township from the 11 1997-1998 state fiscal year, other than a city that receives a 12 distribution under subsection (6), shall be reduced by a uniform 13 percentage to the extent necessary to fund distributions under 14 this subsection. 15 (17) FOR STATE FISCAL YEARS AFTER THE 2000-2001 STATE FISCAL 16 YEAR, THE DEPARTMENT OF TREASURY SHALL CAUSE DISTRIBUTIONS DETER- 17 MINED UNDER SUBSECTIONS (18) AND (19) TO BE PAID TO EACH CITY, 18 VILLAGE, AND TOWNSHIP FROM AN AMOUNT EQUAL TO 74.94% OF 21.3% OF 19 THE SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD 20 ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE 21 MADE, REDUCED BY $18,000,000.00, WHICH $18,000,000.00 SHALL BE 22 DISTRIBUTED TO CITIES, VILLAGES, AND TOWNSHIPS BY APPROPRIATION 23 TO BE USED FOR DISTRESSED COMMUNITIES. DISTRIBUTIONS UNDER THIS 24 SUBSECTION ARE SUBJECT TO SUBSECTION (23). 25 (18) THE DISTRIBUTION UNDER SUBSECTION (17) IS CALCULATED AS 26 FOLLOWS AND AS PROVIDED UNDER SUBSECTION (19): 00403'01 22 1 (A) DETERMINE THE PER CAPITA TAXABLE VALUE FOR EACH CITY, 2 VILLAGE, AND TOWNSHIP BY DIVIDING THE TAXABLE VALUE OF EACH CITY, 3 VILLAGE, AND TOWNSHIP BY THE POPULATION OF THAT CITY, VILLAGE, OR 4 TOWNSHIP. 5 (B) DETERMINE THE STATEWIDE PER CAPITA TAXABLE VALUE BY 6 DIVIDING THE TOTAL TAXABLE VALUE OF ALL CITIES, VILLAGES, AND 7 TOWNSHIPS BY THE TOTAL POPULATION OF ALL CITIES, VILLAGES, AND 8 TOWNSHIPS. 9 (C) DETERMINE THE STATEWIDE PER CAPITA TAXABLE VALUE STAN- 10 DARD DEVIATION WHICH IS THE STANDARD DEVIATION OF PER CAPITA TAX- 11 ABLE VALUE OF CITIES, VILLAGES, AND TOWNSHIPS WITH A PER CAPITA 12 TAXABLE VALUE THAT IS GREATER THAN ZERO AND LESS THAN 13 $50,000.00. 14 (D) DETERMINE PER CAPITA TAXABLE VALUE VARIANCE FOR EACH 15 CITY, VILLAGE, AND TOWNSHIP BY DIVIDING THE DIFFERENCE BETWEEN 16 PER CAPITA TAXABLE VALUE FOR EACH CITY, VILLAGE, AND TOWNSHIP AND 17 THE STATEWIDE PER CAPITA TAXABLE VALUE BY THE STATEWIDE PER 18 CAPITA TAXABLE VALUE STANDARD DEVIATION. 19 (E) DETERMINE THE TAXABLE VALUE POPULATION WEIGHT FACTOR FOR 20 EACH CITY, VILLAGE, AND TOWNSHIP USING THE PER CAPITA TAXABLE 21 VALUE VARIANCE DETERMINED UNDER SUBDIVISION (D) AS FOLLOWS: 22 (i) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF GREATER THAN 23 2.5, THE TAXABLE VALUE POPULATION WEIGHT FACTOR EQUALS 0.10. 24 (ii) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN OR 25 EQUAL TO 2.5 AND GREATER THAN 1.5, THE TAXABLE VALUE POPULATION 26 WEIGHT FACTOR EQUALS 0.35. 00403'01 23 1 (iii) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN 2 OR EQUAL TO 1.5 AND GREATER THAN 0.5, THE TAXABLE VALUE 3 POPULATION WEIGHT FACTOR EQUALS 0.65. 4 (iv) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN OR 5 EQUAL TO 0.5 AND GREATER THAN 0.2, THE TAXABLE VALUE POPULATION 6 WEIGHT FACTOR EQUALS 0.85. 7 (v) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN OR 8 EQUAL TO 0.2 AND GREATER THAN -0.2, THE TAXABLE VALUE POPULATION 9 WEIGHT FACTOR EQUALS 1.00. 10 (vi) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN OR 11 EQUAL TO -0.2 AND GREATER THAN -0.5, THE TAXABLE VALUE POPULATION 12 WEIGHT FACTOR EQUALS 1.15. 13 (vii) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN 14 OR EQUAL TO -0.5 AND GREATER THAN -1.5, THE TAXABLE VALUE POPULA- 15 TION WEIGHT FACTOR EQUALS 1.40. 16 (viii) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN 17 OR EQUAL TO -1.5 AND GREATER THAN -2.5, THE TAXABLE VALUE POPULA- 18 TION WEIGHT FACTOR EQUALS 1.65. 19 (ix) FOR A PER CAPITA TAXABLE VALUE VARIANCE OF LESS THAN OR 20 EQUAL TO -2.5, THE TAXABLE VALUE POPULATION WEIGHT FACTOR EQUALS 21 1.90. 22 (F) DETERMINE THE ADJUSTED TAXABLE VALUE POPULATION FOR EACH 23 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE TAXABLE VALUE POP- 24 ULATION WEIGHT FACTOR AS DETERMINED UNDER SUBDIVISION (E) FOR 25 EACH CITY, VILLAGE, AND TOWNSHIP BY THE POPULATION OF THE CITY, 26 VILLAGE, OR TOWNSHIP. 00403'01 24 1 (G) DETERMINE THE TOTAL STATEWIDE ADJUSTED TAXABLE VALUE 2 POPULATION, WHICH IS THE SUM OF ALL ADJUSTED TAXABLE VALUE 3 POPULATION FOR ALL CITIES, VILLAGES, AND TOWNSHIPS. 4 (H) DETERMINE THE PER CAPITA PAYMENT AMOUNT BY SUBTRACTING 5 $18,000,000.00 FROM 74.94% OF 21.3% OF THE SALES TAX COLLECTIONS 6 AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 OF THE 7 STATE FISCAL YEAR IN WHICH THE PAYMENTS UNDER THIS SUBSECTION ARE 8 MADE AND MULTIPLY THAT RESULT BY 45%, AND DIVIDING THAT RESULT BY 9 THE TOTAL STATEWIDE ADJUSTED TAXABLE VALUE POPULATION AS DETER- 10 MINED UNDER SUBDIVISION (G). 11 (I) DETERMINE THE TAXABLE VALUE VARIANCE BY MULTIPLYING THE 12 RESULT UNDER SUBDIVISION (H) BY THE ADJUSTED TAXABLE VALUE POPU- 13 LATION FOR EACH CITY, VILLAGE, AND TOWNSHIP. 14 (J) DETERMINE THE UNIT TYPE POPULATION WEIGHT FACTOR FOR 15 EACH CITY, VILLAGE, AND TOWNSHIP AS FOLLOWS: 16 (i) FOR A TOWNSHIP WITH A POPULATION OF LESS THAN 10,000, 17 THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.0. 18 (ii) FOR A TOWNSHIP WITH A POPULATION OF 10,000 OR MORE BUT 19 LESS THAN 25,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.2. 20 (iii) FOR A TOWNSHIP WITH A POPULATION OF 25,000 OR MORE BUT 21 LESS THAN 50,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.8. 22 (iv) FOR A TOWNSHIP WITH A POPULATION OF 50,000 OR MORE, THE 23 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.4. 24 (v) FOR A VILLAGE WITH A POPULATION OF LESS THAN 1,000, THE 25 UNIT TYPE POPULATION WEIGHT FACTOR IS 1.5. 26 (vi) FOR A VILLAGE WITH A POPULATION OF 1,000 OR MORE, THE 27 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.0. 00403'01 25 1 (vii) FOR A CITY WITH A POPULATION OF LESS THAN 5,000, THE 2 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.5. 3 (viii) FOR A CITY WITH A POPULATION OF 5,000 OR MORE BUT 4 LESS THAN 10,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 2.8. 5 (ix) FOR A CITY WITH A POPULATION OF 10,000 OR MORE BUT LESS 6 THAN 30,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.0. 7 (x) FOR A CITY WITH A POPULATION OF 30,000 OR MORE BUT LESS 8 THAN 50,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.2. 9 (xi) FOR A CITY WITH A POPULATION OF 50,000 OR MORE BUT LESS 10 THAN 60,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.3. 11 (xii) FOR A CITY WITH A POPULATION OF 60,000 OR MORE BUT 12 LESS THAN 100,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 13 3.5. 14 (xiii) FOR A CITY WITH A POPULATION OF 100,000 OR MORE BUT 15 LESS THAN 140,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 16 4.0. 17 (xiv) FOR A CITY WITH A POPULATION OF 140,000 OR MORE BUT 18 LESS THAN 180,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 19 4.1. 20 (xv) FOR A CITY WITH A POPULATION OF 180,000 OR MORE BUT 21 LESS THAN 1,000,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 22 4.2. 23 (xvi) FOR A CITY WITH A POPULATION OF 1,000,000 OR MORE, THE 24 UNIT TYPE POPULATION WEIGHT FACTOR IS 4.5. 25 (K) DETERMINE THE ADJUSTED UNIT TYPE POPULATION FOR EACH 26 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE UNIT TYPE 27 POPULATION WEIGHT FACTOR FOR EACH CITY, VILLAGE, AND TOWNSHIP AS 00403'01 26 1 DETERMINED UNDER SUBDIVISION (J) BY THE POPULATION OF THE CITY, 2 VILLAGE, OR TOWNSHIP. 3 (l) DETERMINE THE TOTAL STATEWIDE ADJUSTED UNIT TYPE POPULA- 4 TION WHICH IS THE SUM OF THE ADJUSTED UNIT TYPE POPULATION FOR 5 ALL CITIES, VILLAGES, AND TOWNSHIPS. 6 (M) DETERMINE THE PER CAPITA PAYMENT AMOUNT BY SUBTRACTING 7 $18,000,000.00 FROM AN AMOUNT EQUAL TO 74.94% OF 21.3% OF THE 8 SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD 9 ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS 10 UNDER THIS SUBSECTION ARE MADE, MULTIPLYING THAT AMOUNT BY 45%, 11 AND THEN DIVIDING THAT RESULT BY THE TOTAL STATEWIDE ADJUSTED 12 UNIT TYPE POPULATION AS DETERMINED UNDER SUBDIVISION (l). 13 (N) DETERMINE THE UNIT TYPE POPULATION PAYMENT BY MULTIPLY- 14 ING THE RESULT UNDER SUBDIVISION (M) BY THE ADJUSTED UNIT TYPE 15 POPULATION FOR EACH CITY, VILLAGE, AND TOWNSHIP. 16 (19) THE DISTRIBUTION UNDER SUBSECTION (17) SHALL BE CALCU- 17 LATED AS FOLLOWS AND AS PROVIDED UNDER SUBSECTION (18): 18 (A) DETERMINE THE TAXABLE VALUE PER CAPITA GUARANTEE AMOUNT 19 WHICH IS THE AMOUNT NEEDED TO ASSURE THAT THE TOTAL OF ALL YIELD 20 EQUALIZATION PAYMENTS ARE EQUAL TO 74.94% OF 21.3% OF THE SALES 21 TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING 22 JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS UNDER THIS 23 SUBSECTION ARE MADE MINUS $18,000,000.00. 24 (B) DETERMINE THE EQUALIZATION BASE FOR EACH CITY, VILLAGE, 25 OR TOWNSHIP, WHICH IS EITHER OF THE FOLLOWING: 26 (i) IF THE PER CAPITA TAXABLE VALUE AS DETERMINED UNDER 27 SUBSECTION (18)(A) FOR THE CITY, VILLAGE, OR TOWNSHIP IS LESS 00403'01 27 1 THAN THE TAXABLE VALUE PER CAPITA GUARANTEE AMOUNT, THE 2 EQUALIZATION BASE FOR THE CITY, VILLAGE, OR TOWNSHIP IS THE TAX- 3 ABLE VALUE PER CAPITA GUARANTEE AMOUNT MINUS PER CAPITA TAXABLE 4 VALUE FOR THAT CITY, VILLAGE, OR TOWNSHIP. 5 (ii) IF THE PER CAPITA TAXABLE VALUE AS DETERMINED UNDER 6 SUBSECTION (18)(A) FOR THE CITY, VILLAGE, OR TOWNSHIP IS GREATER 7 THAN OR EQUAL TO THE TAXABLE VALUE PER CAPITA GUARANTEE AMOUNT, 8 THE EQUALIZATION BASE FOR THE CITY, VILLAGE, OR TOWNSHIP IS 9 ZERO. 10 (C) DETERMINE THE PER CAPITA YIELD FOR EACH CITY, VILLAGE, 11 AND TOWNSHIP BY MULTIPLYING THE EQUALIZATION BASE FOR THE CITY, 12 VILLAGE, OR TOWNSHIP BY THE LOCAL TAX EFFORT AS DETERMINED UNDER 13 THIS ACT FOR EACH CITY, VILLAGE, AND TOWNSHIP. 14 (D) DETERMINE THE YIELD PAYMENT FOR EACH CITY, VILLAGE, AND 15 TOWNSHIP BY MULTIPLYING THE PER CAPITA YIELD FOR EACH CITY, VIL- 16 LAGE, AND TOWNSHIP BY THE POPULATION OF THAT CITY, VILLAGE, OR 17 TOWNSHIP AND THEN MULTIPLYING THAT RESULT BY 10%. 18 (20) THE LOCAL UNIT TAX EFFORT RATE FOR A CITY, VILLAGE, OR 19 TOWNSHIP UNDER SUBSECTION (19)(C) IS EQUAL TO THE LOCAL TAX 20 EFFORT OF THE CITY, VILLAGE, OR TOWNSHIP OR 0.02, WHICHEVER IS 21 LESS. 22 (21) DETERMINE THE GROWTH AMOUNT BY MULTIPLYING THE SUM OF 23 THE AMOUNTS DETERMINED FOR ALL CITIES, VILLAGES, AND TOWNSHIPS 24 UNDER SUBSECTION (19)(C) BY 10%. 25 (22) DETERMINE THE EXTENSION PAYMENT BY ADDING 10% OF EACH 26 CITY'S, VILLAGE'S, AND TOWNSHIP'S PRO RATA SHARE OF THE 1997-1998 27 PAYMENTS UNDER THIS SECTION TO THE CITY'S, VILLAGE'S, OR 00403'01 28 1 TOWNSHIP'S PER CAPITA PORTION OF THE GROWTH AMOUNT DETERMINED 2 UNDER SUBSECTION (21). 3 (23) THE AMOUNT DISTRIBUTED UNDER SUBSECTION (17) AND CALCU- 4 LATED UNDER SUBSECTION (19) SHALL BE DETERMINED FOR THE FOLLOWING 5 YEARS AS FOLLOWS: 6 (A) FOR THE 2001-2002 STATE FISCAL YEAR, 83.3% OF THE PAY- 7 MENT SHALL BE THE EXTENSION AMOUNT CALCULATED UNDER 8 SUBSECTION (22) AND 16.7% OF THE PAYMENT SHALL BE CALCULATED 9 USING THE FORMULA UNDER SUBSECTION (19). 10 (B) FOR THE 2002-2003 STATE FISCAL YEAR, 66.7% OF THE PAY- 11 MENT SHALL BE THE EXTENSION AMOUNT CALCULATED UNDER 12 SUBSECTION (22) AND 33.3% OF THE PAYMENT SHALL BE CALCULATED 13 USING THE FORMULA UNDER SUBSECTION (19). 14 (C) FOR THE 2003-2004 STATE FISCAL YEAR, 50.0% OF THE PAY- 15 MENT SHALL BE THE EXTENSION AMOUNT CALCULATED UNDER SUBSECTION 16 (22) AND 50.0% OF THE PAYMENT SHALL BE CALCULATED USING THE FOR- 17 MULA UNDER SUBSECTION (19). 18 (D) FOR THE 2004-2005 STATE FISCAL YEAR, 33.3% OF THE PAY- 19 MENT SHALL BE THE EXTENSION AMOUNT CALCULATED UNDER SUBSECTION 20 (22) AND 66.7% OF THE PAYMENT SHALL BE CALCULATED USING THE FOR- 21 MULA UNDER SUBSECTION (19). 22 (E) FOR THE 2005-2006 STATE FISCAL YEAR, 16.7% OF THE PAY- 23 MENT SHALL BE THE EXTENSION AMOUNT CALCULATED UNDER SUBSECTION 24 (22) AND 83.3% OF THE PAYMENT SHALL BE CALCULATED USING THE FOR- 25 MULA UNDER SUBSECTION (19). 26 (F) FOR THE 2006-2007 STATE FISCAL YEAR AND EACH STATE 27 FISCAL YEAR AFTER THE 2006-2007 STATE FISCAL YEAR, 100% OF THE 00403'01 29 1 PAYMENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION 2 (19). 3 (24) THE TOTAL PAYMENTS FOR A STATE FISCAL YEAR TO EACH 4 CITY, VILLAGE, OR TOWNSHIP UNDER SUBSECTION (17) AND SECTION 10 5 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 SHALL NOT 6 INCREASE BY MORE THAN 8% OVER THE AMOUNT OF THE PAYMENT UNDER 7 THIS ACT AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION 8 OF 1963 FOR THAT CITY, VILLAGE, OR TOWNSHIP IN THE IMMEDIATELY 9 PRECEDING STATE FISCAL YEAR. 10 (25) FOR THE 2001-2002 STATE FISCAL YEAR, THE AMOUNT AVAIL- 11 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 12 SUBSECTION (17) AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTI- 13 TUTION OF 1963 SHALL BE DISTRIBUTED ON A PER CAPITA BASIS TO 14 CITIES, VILLAGES, AND TOWNSHIPS THAT HAVE A DECREASE IN THEIR 15 PAYMENT AMOUNTS OF 12% OR MORE FOR AN INITIAL DISTRIBUTION UNDER 16 THIS SUBSECTION, OR ANY DECREASE FOR A SUBSEQUENT DISTRIBUTION 17 UNDER THIS SUBSECTION IN THE SAME STATE FISCAL YEAR FOR THE STATE 18 FISCAL YEAR UNDER THIS ACT AND UNDER SECTION 10 OF ARTICLE IX OF 19 THE STATE CONSTITUTION OF 1963 AS COMPARED TO PAYMENTS UNDER THIS 20 ACT AND UNDER SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION 21 OF 1963 FOR THE IMMEDIATELY PRECEDING TAX YEAR. 22 (26) FOR THE 2002-2003 STATE FISCAL YEAR, THE AMOUNT AVAIL- 23 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 24 SUBSECTION (17) AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTI- 25 TUTION OF 1963 SHALL BE DISTRIBUTED ON A PER CAPITA BASIS TO 26 CITIES, VILLAGES, AND TOWNSHIPS THAT HAVE A DECREASE IN THEIR 27 PAYMENT AMOUNTS OF 10% OR MORE FOR AN INITIAL DISTRIBUTION UNDER 00403'01 30 1 THIS SUBSECTION, OR ANY DECREASE FOR A SUBSEQUENT DISTRIBUTION 2 UNDER THIS SUBSECTION IN THE SAME STATE FISCAL YEAR FOR THE STATE 3 FISCAL YEAR UNDER THIS ACT AND UNDER SECTION 10 OF ARTICLE IX OF 4 THE STATE CONSTITUTION OF 1963 AS COMPARED TO PAYMENTS UNDER THIS 5 ACT AND UNDER SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION 6 OF 1963 FOR THE IMMEDIATELY PRECEDING TAX YEAR. 7 (27) FOR THE 2003-2004 STATE FISCAL YEAR, THE AMOUNT AVAIL- 8 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 9 SUBSECTION (17) AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTI- 10 TUTION OF 1963 SHALL BE DISTRIBUTED ON A PER CAPITA BASIS TO 11 CITIES, VILLAGES, AND TOWNSHIPS THAT HAVE A DECREASE IN THEIR 12 PAYMENT AMOUNTS OF 8% OR MORE FOR AN INITIAL DISTRIBUTION UNDER 13 THIS SUBSECTION, OR ANY DECREASE FOR A SUBSEQUENT DISTRIBUTION 14 UNDER THIS SUBSECTION IN THE SAME STATE FISCAL YEAR FOR THE STATE 15 FISCAL YEAR UNDER THIS ACT AND UNDER SECTION 10 OF ARTICLE IX OF 16 THE STATE CONSTITUTION OF 1963 AS COMPARED TO PAYMENTS UNDER THIS 17 ACT AND UNDER SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION 18 OF 1963 FOR THE IMMEDIATELY PRECEDING TAX YEAR. 19 (28) FOR THE 2004-2005 AND 2005-2006 STATE FISCAL YEARS, THE 20 AMOUNT AVAILABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DIS- 21 TRIBUTED UNDER SUBSECTION (17) AND SECTION 10 OF ARTICLE IX OF 22 THE STATE CONSTITUTION OF 1963 SHALL BE DISTRIBUTED ON A PER 23 CAPITA BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT HAVE A 24 DECREASE IN THEIR PAYMENT AMOUNTS OF 4% OR MORE FOR AN INITIAL 25 DISTRIBUTION UNDER THIS SUBSECTION, OR ANY DECREASE FOR A SUBSE- 26 QUENT DISTRIBUTION UNDER THIS SUBSECTION IN THE SAME STATE FISCAL 27 YEAR FOR THE STATE FISCAL YEAR UNDER THIS ACT AND UNDER SECTION 00403'01 31 1 10 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 AS COMPARED TO 2 PAYMENTS UNDER THIS ACT AND UNDER SECTION 10 OF ARTICLE IX OF THE 3 STATE CONSTITUTION OF 1963 FOR THE IMMEDIATELY PRECEDING TAX 4 YEAR. 5 (29) FOR STATE FISCAL YEARS AFTER THE 2005-2006 STATE FISCAL 6 YEAR, THE AMOUNT AVAILABLE FOR DISTRIBUTION IN EXCESS OF THE 7 AMOUNT DISTRIBUTED UNDER SUBSECTION (17) AND SECTION 10 OF ARTI- 8 CLE IX OF THE STATE CONSTITUTION OF 1963 SHALL BE DISTRIBUTED ON 9 A PER CAPITA BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT 10 RECEIVE PAYMENTS IN THE STATE FISCAL YEAR THAT HAVE ANY DECREASE 11 IN THEIR PAYMENT AMOUNTS FOR THE STATE FISCAL YEAR UNDER THIS ACT 12 AND UNDER SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION OF 13 1963 AS COMPARED TO PAYMENTS UNDER THIS ACT AND UNDER SECTION 10 14 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 FOR THE IMMEDI- 15 ATELY PRECEDING TAX YEAR. 16 (30)17The payments under subsections (3), (4), (5), and 17(5)(17) shall be made during each October, December, February, 18 April, June, and August. Payments under subsections (3), (4), 19 (5), and(5)(17) shall be based on collections from the sales 20 tax at the rate of 4% in the 2-month period ending the prior 21 August 31, October 31, December 31, February 28, April 30, and 22 June 30, and for the 1996-1997 and 1997-1998 state fiscal years 23 only, the payments shall be reduced by 1/6 of the total distribu- 24 tion for the state fiscal year under section 12a. 25 (31)(18)Payments under this section shall be made from 26 revenues collected during the state fiscal year in which the 27 payments are made. 00403'01 32 1 (32)(19)Distributions provided for by this act are 2 subject to an annual appropriation by the legislature. 00403'01 Final page. KDD