SENATE BILL No. 1104

 

 

March 18, 2004, Introduced by Senators JOHNSON and EMERSON 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 section 13 (MCL 141.913), as amended by 2003 PA 168.            

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 13.  (1) This subsection and subsection (2) apply to                   

                                                                                

2   distributions to cities, villages, and townships during the state           

                                                                                

3   fiscal years before the 1996-1997 state fiscal year of                      

                                                                                

4   collections from the state income tax and single business tax.              

                                                                                

5   Except as otherwise provided in subsection (2), the department of           

                                                                                

6   treasury shall cause to be paid to each city, village, and                  

                                                                                

7   township its share, computed in accordance with the tax effort              

                                                                                

8   formula, of the following revenues:                                         

                                                                                

9       (a) During each August, November, February, and May, the                    

                                                                                

10  collections from the state income tax for the quarter periods               

                                                                                

11  ending the prior June 30, September 30, December 31, and March 31           

                                                                                


                                                                                

1   that are available for distribution to cities, villages, and                

                                                                                

2   townships under the income tax act of 1967, 1967 PA 281,                    

                                                                                

3   MCL 206.1 to 206.532.                                                       

                                                                                

4       (b) The amount of the collections from the single business                  

                                                                                

5   tax available for distribution to cities, villages, and townships           

                                                                                

6   under former section 136 of the single business tax act, 1975               

                                                                                

7   PA 228.                                                                     

                                                                                

8       (2) The amount of collections of the state income tax                       

                                                                                

9   otherwise available for distribution to cities, villages, and               

                                                                                

10  townships in November, February, and May, computed in accordance            

                                                                                

11  with the tax effort formula, shall be increased by                          

                                                                                

12  $22,600,000.00.  The amount of collections otherwise available              

                                                                                

13  for distribution to cities, villages, and townships in August,              

                                                                                

14  computed in accordance with the tax effort formula, shall be                

                                                                                

15  decreased by $67,800,000.00.                                                

                                                                                

16      (3) This subsection applies to distributions to cities,                     

                                                                                

17  villages, and townships for the 1996-1997 state fiscal year.  The           

                                                                                

18  department shall cause to be paid in accordance with the tax                

                                                                                

19  effort formula an amount equal to 75.5% of the difference between           

                                                                                

20  21.3% of the sales tax collections at a rate of 4% in the                   

                                                                                

21  12-month period ending June 30 of the state fiscal year in which            

                                                                                

22  the payments are made and the total distribution for the state              

                                                                                

23  fiscal year under section 12a.                                              

                                                                                

24      (4) The department of treasury shall cause to be paid during                

                                                                                

25  the 1997-1998 state fiscal year an amount equal to 75.5% of the             

                                                                                

26  difference between 21.3% of the sales tax collections at a rate             

                                                                                

27  of 4% in the 12-month period ending June 30 of the state fiscal             


                                                                                

1   year in which the payments are made and the total distribution              

                                                                                

2   for the state fiscal year under section 12a, both of the                    

                                                                                

3   following:                                                                  

                                                                                

4       (a) To each city, village, and township, the amount of                      

                                                                                

5   collections distributed under subsection (3) to cities, villages,           

                                                                                

6   and townships for the 1996-1997 state fiscal year or its pro rata           

                                                                                

7   share of the collections if the collections are less than the               

                                                                                

8   amount of collections distributed under subsection (3) for the              

                                                                                

9   1996-1997 state fiscal year.  A city's, village's, or township's            

                                                                                

10  share of revenues under this subdivision shall be computed using            

                                                                                

11  the tax effort formula.                                                     

                                                                                

12      (b) To each city, village, and township its share of the                    

                                                                                

13  collections to the extent the total collections available for               

                                                                                

14  distribution under this subsection exceed the amount distributed            

                                                                                

15  to cities, villages, and townships under subdivision (a) for the            

                                                                                

16  fiscal year.  A city's, village's, or township's share of                   

                                                                                

17  revenues under this subdivision shall be computed on a per capita           

                                                                                

18  basis.                                                                      

                                                                                

19      (5) Subject to section 13d, for the 1998-1999 through                       

                                                                                

20  2005-2006  2006-2007 state fiscal years,  and for the period of            

                                                                                

21  October 1, 2006 through September 30, 2007,  the department of              

                                                                                

22  treasury shall cause distributions determined under subsections             

                                                                                

23  (6) to (13) to be paid to each city, village, and township from             

                                                                                

24  an amount equal to 74.94% of 21.3% of the sales tax collections             

                                                                                

25  at a rate of 4% in the 12-month period ending June 30 of the                

                                                                                

26  state fiscal year in which the payments are made.  For the                  

                                                                                

27  2004-2005 state fiscal year and each state fiscal year after the            


                                                                                

1   2004-2005 state fiscal year, this amount shall be reduced by the            

                                                                                

2   amount paid during that state fiscal year for the state's                   

                                                                                

3   payments in lieu of taxes on property held by the state under               

                                                                                

4   subpart 14 of part 21 of the natural resources and environmental            

                                                                                

5   protection act, 1994 PA 451, MCL 324.2152 to 324.2154, as                   

                                                                                

6   adjusted under section 2153 of subpart 14 of part 21 of the                 

                                                                                

7   natural resources and environmental protection act, 1994 PA 451,            

                                                                                

8   MCL 324.2153.  The amount determined under this subsection as the           

                                                                                

9   reduction for each state fiscal year shall be used to make                  

                                                                                

10  payments in lieu of taxes for that fiscal year.  The amount                 

                                                                                

11  required for payments in lieu of taxes under subpart 14 of part             

                                                                                

12  21 of the natural resources and environmental protection act,               

                                                                                

13  1994 PA 451, MCL 324.2152 to 324.2154, shall be adjusted based on           

                                                                                

14  the percentage change in the amount allocated under this section            

                                                                                

15  and section 10 of article IX of the state constitution of 1963.             

                                                                                

16  If the amount available for payments in lieu of taxes is greater            

                                                                                

17  than or less than the amount required for payments in lieu of               

                                                                                

18  taxes, the amount available for payments in lieu of taxes shall             

                                                                                

19  be distributed in the same proportion that each payment is to the           

                                                                                

20  total of all payments in lieu of taxes for the state fiscal year.           

                                                                                

21  After September 30, 2007, 74.94% of 21.3% of sales tax                      

                                                                                

22  collections at a rate of 4% shall be distributed to cities,                 

                                                                                

23  villages, and townships as provided by law.                                 

                                                                                

24      (6) Subject to section 13d, for the 1998-1999 through                       

                                                                                

25  2005-2006  2006-2007 state fiscal years,  and for the period of            

                                                                                

26  October 1, 2006 through September 30, 2007,  except for the                 

                                                                                

27  2002-2003  and 2003-2004  through 2004-2005 state fiscal years,             


                                                                                

1   and except as otherwise provided in subsection (15), the                    

                                                                                

2   department of treasury shall cause to be paid $333,900,000.00 to            

                                                                                

3   a city with a population of 750,000 or more as the total combined           

                                                                                

4   distribution under this act and section 10 of article IX of the             

                                                                                

5   state constitution of 1963 as annualized for any period of less             

                                                                                

6   than 12 months to that city.  For the 2002-2003 state fiscal year           

                                                                                

7   only, the total combined distribution under this subsection and             

                                                                                

8   section 10 of article IX of the state constitution of 1963 shall            

                                                                                

9   be the lesser of $322,213,500.00 or $333,900,000.00 multiplied by           

                                                                                

10  the percentage as determined under this subsection.  For the                

                                                                                

11  2002-2003 state fiscal year, the percentage under this subsection           

                                                                                

12  shall be determined by dividing the sum of all payments under               

                                                                                

13  section 10 of article IX of the state constitution of 1963 and              

                                                                                

14  $791,070,000.00 by $1,515,644,218.00.  For the 2003-2004 state              

                                                                                

15  fiscal year only, the total combined distribution under this                

                                                                                

16  subsection and section 10 of article IX of the state constitution           

                                                                                

17  of 1963 shall be the lesser of  97%  92%, or the percentage                 

                                                                                

18  determined under this subsection, of the total combined                     

                                                                                

19  distribution under this subsection and section 10 of article IX             

                                                                                

20  of the state constitution of 1963 for the 2002-2003 state fiscal            

                                                                                

21  year.  For the 2003-2004 state fiscal year, the percentage under            

                                                                                

22  this subsection shall be determined by dividing the sum of all              

                                                                                

23  payments under section 10 of article IX of the state constitution           

                                                                                

24  of 1963 and $724,800,000.00 by $1,407,850,000.00 and then                   

                                                                                

25  subtracting  0.03  0.08For the 2004-2005 state fiscal year               

                                                                                

26  only, the total combined distribution under this subsection and             

                                                                                

27  section 10 of article IX of the state constitution of 1963 shall            


                                                                                

1   be the total combined distribution under this subsection and                

                                                                                

2   section 10 of article IX of the state constitution of 1963 for              

                                                                                

3   the 2003-2004 state fiscal year reduced by a percentage computed            

                                                                                

4   by dividing the total amount to be paid during the 2004-2005                

                                                                                

5   state fiscal year for the state's payments in lieu of taxes on              

                                                                                

6   property held by the state pursuant to subpart 14 of part 21 of             

                                                                                

7   the natural resources and environmental protection act, 1994 PA             

                                                                                

8   451, MCL 324.2152 to 324.2154, by the total amount distributed to           

                                                                                

9   cities, villages, and townships under this section and section 10           

                                                                                

10  of article IX of the state constitution of 1963 during the                  

                                                                                

11  2003-2004 state fiscal year.                                                

                                                                                

12      (7) Except as otherwise provided in this subsection,                        

                                                                                

13  distributions under subsections (8) to (13) to cities, villages,            

                                                                                

14  and townships with populations of less than 750,000 shall be made           

                                                                                

15  from the amount available for distribution under this section               

                                                                                

16  that remains after the distribution under subsection (6) is                 

                                                                                

17  made.  For the 2002-2003 state fiscal year only, each city,                 

                                                                                

18  village, and township with a population of less than 750,000                

                                                                                

19  shall receive the lesser of 96.5%, or the percentage determined             

                                                                                

20  under this subsection, of the amount that the city, village, or             

                                                                                

21  township would have received if the total available for                     

                                                                                

22  distribution under subsections (8) to (13) were $363,069,728.00             

                                                                                

23  and the total available for distribution under section 10 of                

                                                                                

24  article IX of the state constitution of 1963 were                           

                                                                                

25  $607,125,488.00.  The total amount available for distribution to            

                                                                                

26  all cities, villages, and townships under this subsection shall             

                                                                                

27  not exceed $936,238,383.00.  For the 2002-2003 state fiscal year,           


                                                                                

1   the percentage under this subsection shall be determined by                 

                                                                                

2   dividing the sum of all payments under section 10 of article IX             

                                                                                

3   of the state constitution of 1963 and $791,070,000.00 by                    

                                                                                

4   $1,515,644,218.00.  For the 2003-2004 state fiscal year only,               

                                                                                

5   each city, village, and township with a population of less than             

                                                                                

6   750,000 shall receive an amount equal to the lesser of  97%  92%,           

                                                                                

7   or the percentage determined under this subsection, of the amount           

                                                                                

8   distributed to the city, village, or township under this                    

                                                                                

9   subsection and section 10 of article IX of the state constitution           

                                                                                

10  of 1963 for the 2002-2003 state fiscal year.  For the 2003-2004             

                                                                                

11  state fiscal year, the percentage under this subsection shall be            

                                                                                

12  determined by dividing the sum of all payments under section 10             

                                                                                

13  of article IX of the state constitution of 1963 and                         

                                                                                

14  $724,800,000.00 by $1,407,850,000.00 and then subtracting  0.03             

                                                                                

15  0.08For the 2004-2005 state fiscal year only, each city,                 

                                                                                

16  village, and township with a population of less than 750,000                

                                                                                

17  shall receive an amount equal to the amount distributed to that             

                                                                                

18  city, village, or township under this subsection and section 10             

                                                                                

19  of article IX of the state constitution of 1963 for the 2003-2004           

                                                                                

20  state fiscal year, reduced by a percentage computed by dividing             

                                                                                

21  the total amount to be paid during the 2004-2005 state fiscal               

                                                                                

22  year for the state's payments in lieu of taxes on property held             

                                                                                

23  by the state pursuant to subpart 14 of part 21 of the natural               

                                                                                

24  resources and environmental protection act, 1994 PA 451, MCL                

                                                                                

25  324.2152 to 324.2154, by the total amount distributed to cities,            

                                                                                

26  villages, and townships under this section and section 10 of                

                                                                                

27  article IX of the state constitution of 1963 during the 2003-2004           


                                                                                

1   state fiscal year. The amount of the adjustment under this                  

                                                                                

2   subsection shall be accomplished by reducing the payments under             

                                                                                

3   subsections (8) to (13), and payments under section 10 of                   

                                                                                

4   article IX shall not be reduced based on any adjustments made               

                                                                                

5   under this subsection.                                                      

                                                                                

6       (8) Subject to section 13d, for the 1998-1999 through                       

                                                                                

7   2005-2006  2006-2007 state fiscal years,  and for the period of            

                                                                                

8   October 1, 2006 through September 30, 2007,  for cities,                    

                                                                                

9   villages, and townships with populations of less than 750,000,              

                                                                                

10  subject to the limitations under this section, a taxable value              

                                                                                

11  payment shall be made to each city, village, and township                   

                                                                                

12  determined as follows:                                                      

                                                                                

13      (a) Determine the per capita taxable value for each city,                   

                                                                                

14  village, and township by dividing the taxable value of that city,           

                                                                                

15  village, or township by the population of that city, village, or            

                                                                                

16  township.                                                                   

                                                                                

17      (b) Determine the statewide per capita taxable value by                     

                                                                                

18  dividing the total taxable value of all cities, villages, and               

                                                                                

19  townships by the total population of all cities, villages, and              

                                                                                

20  townships.                                                                  

                                                                                

21      (c) Determine the per capita taxable value ratio for each                   

                                                                                

22  city, village, and township by dividing the statewide per capita            

                                                                                

23  taxable value by the per capita taxable value for that city,                

                                                                                

24  village, or township.                                                       

                                                                                

25      (d) Determine the adjusted taxable value population for each                

                                                                                

26  city, village, and township by multiplying the per capita taxable           

                                                                                

27  value ratio as determined under subdivision (c) for that city,              


                                                                                

1   village, or township by the population of that city, village, or            

                                                                                

2   township.                                                                   

                                                                                

3       (e) Determine the total statewide adjusted taxable value                    

                                                                                

4   population which is the sum of all adjusted taxable value                   

                                                                                

5   population for all cities, villages, and townships.                         

                                                                                

6       (f) Determine the taxable value payment rate by dividing                    

                                                                                

7   74.94% of 21.3% of the sales tax collections at a rate of 4% in             

                                                                                

8   the 12-month period ending June 30 of the state fiscal year in              

                                                                                

9   which the payments under this subsection are made by 3, and                 

                                                                                

10  dividing that result by the total statewide adjusted taxable                

                                                                                

11  value population as determined under subdivision (e).                       

                                                                                

12      (g) Determine the taxable value payment for each city,                      

                                                                                

13  village, and township by multiplying the result under                       

                                                                                

14  subdivision (f) by the adjusted taxable value population for that           

                                                                                

15  city, village, or township.                                                 

                                                                                

16      (9) Subject to section 13d, for the 1998-1999 through                       

                                                                                

17  2005-2006 state fiscal years and for the period of October 1,               

                                                                                

18  2006 through September 30, 2007, subject to the limitations under           

                                                                                

19  this section and except as provided in subsection (14), a unit              

                                                                                

20  type population payment shall be made to each city, village, and            

                                                                                

21  township with a population of less than 750,000 determined as               

                                                                                

22  follows:                                                                    

                                                                                

23      (a) Determine the unit type population weight factor for each               

                                                                                

24  city, village, and township as follows:                                     

                                                                                

25                                                                               (i) For a township with a population of 5,000 or less, the                          

                                                                                

26  unit type population weight factor is 1.0.                                  

                                                                                

27      (ii) For a township with a population of more than 5,000 but                 


                                                                                

1   less than 10,001, the unit type population weight factor is 1.2.            

                                                                                

2       (iii) For a township with a population of more than 10,000                   

                                                                                

3   but less than 20,001, the unit type population weight factor is             

                                                                                

4   1.44.                                                                       

                                                                                

5       (iv) For a township with a population of more than 20,000 but                

                                                                                

6   less than 40,001, the unit type population weight factor is                 

                                                                                

7   1.73.                                                                       

                                                                                

8       (v) For a township with a population of more than 40,000 but                

                                                                                

9   less than 80,001, the unit type population weight factor is                 

                                                                                

10  2.07.                                                                       

                                                                                

11      (vi) For a township with a population of more than 80,000,                   

                                                                                

12  the unit type population weight factor is 2.49.                             

                                                                                

13      (vii) For a village with a population of 5,000 or less, the                  

                                                                                

14  unit type population weight factor is 1.5.                                  

                                                                                

15      (viii) For a village with a population of more than 5,000 but                 

                                                                                

16  less than 10,001, the unit type population weight factor is 1.8.            

                                                                                

17      (ix) For a village with a population of more than 10,000, the                

                                                                                

18  unit type population weight factor is 2.16.                                 

                                                                                

19      (x) For a city with a population of 5,000 or less, the unit                 

                                                                                

20  type population weight factor is 2.5.                                       

                                                                                

21      (xi) For a city with a population of more than 5,000 but less                

                                                                                

22  than 10,001, the unit type population weight factor is 3.0.                 

                                                                                

23      (xii) For a city with a population of more than 10,000 but                   

                                                                                

24  less than 20,001, the unit type population weight factor is 3.6.            

                                                                                

25      (xiii) For a city with a population of more than 20,000 but                   

                                                                                

26  less than 40,001, the unit type population weight factor is                 

                                                                                

27  4.32.                                                                       


                                                                                

1       (xiv) For a city with a population of more than 40,000 but                   

                                                                                

2   less than 80,001, the unit type population weight factor is                 

                                                                                

3   5.18.                                                                       

                                                                                

4       (xv) For a city with a population of more than 80,000 but                   

                                                                                

5   less than 160,001, the unit type population weight factor is                

                                                                                

6   6.22.                                                                       

                                                                                

7       (xvi) For a city with a population of more than 160,000 but                  

                                                                                

8   less than 320,001, the unit type population weight factor is                

                                                                                

9   7.46.                                                                       

                                                                                

10      (xvii) For a city with a population of more than 320,000 but                 

                                                                                

11  less than 640,001, the unit type population weight factor is                

                                                                                

12  8.96.                                                                       

                                                                                

13      (xviii) For a city with a population of more than 640,000,                    

                                                                                

14  the unit type population weight factor is 10.75.                            

                                                                                

15      (b) Determine the adjusted unit type population for each                    

                                                                                

16  city, village, and township by multiplying the unit type                    

                                                                                

17  population weight factor for that city, village, or township as             

                                                                                

18  determined under subdivision (a) by the population of the city,             

                                                                                

19  village, or township.                                                       

                                                                                

20      (c) Determine the total statewide adjusted unit type                        

                                                                                

21  population, which is the sum of the adjusted unit type population           

                                                                                

22  for all cities, villages, and townships.                                    

                                                                                

23      (d) Determine the unit type population payment rate by                      

                                                                                

24  dividing 74.94% of 21.3% of the sales tax collections at a rate             

                                                                                

25  of 4% in the 12-month period ending June 30 of the state fiscal             

                                                                                

26  year in which the payments under this subsection are made by 3,             

                                                                                

27  and then dividing that result by the total statewide adjusted               


                                                                                

1   unit type population as determined under subdivision (c).                   

                                                                                

2       (e) Determine the unit type population payment for each city,               

                                                                                

3   village, and township by multiplying the result under subdivision           

                                                                                

4   (d) by the adjusted unit type population for that city, village,            

                                                                                

5   or township.                                                                

                                                                                

6       (10) Subject to section 13d, for the 1998-1999 through                      

                                                                                

7   2005-2006 state fiscal years and for the period of October 1,               

                                                                                

8   2006 through September 30, 2007, subject to the limitations under           

                                                                                

9   this section, a yield equalization payment shall be made to each            

                                                                                

10  city, village, and township with a population of less than                  

                                                                                

11  750,000 sufficient to provide the guaranteed tax base for a local           

                                                                                

12  tax effort not to exceed 0.02.  The payment shall be determined             

                                                                                

13  as follows:                                                                 

                                                                                

14      (a) The guaranteed tax base is the maximum combined state and               

                                                                                

15  local per capita taxable value that can be guaranteed in a state            

                                                                                

16  fiscal year to each city, village, and township for a local tax             

                                                                                

17  effort not to exceed 0.02 if an amount equal to 74.94% of 21.3%             

                                                                                

18  of the state sales tax at a rate of 4% is distributed to cities,            

                                                                                

19  villages, and townships whose per capita taxable value is below             

                                                                                

20  the guaranteed tax base.                                                    

                                                                                

21      (b) The full yield equalization payment to each city,                       

                                                                                

22  village, and township is the product of the amounts determined              

                                                                                

23  under subparagraphs (i) and (ii):                                            

                                                                                

24                                                                               (i) An amount greater than zero that is equal to the                                

                                                                                

25  difference between the guaranteed tax base determined in                    

                                                                                

26  subdivision (a) and the per capita taxable value of the city,               

                                                                                

27  village, or township.                                                       


                                                                                

1       (ii) The local tax effort of the city, village, or township,                 

                                                                                

2   not to exceed 0.02, multiplied by the population of that city,              

                                                                                

3   village, or township.                                                       

                                                                                

4       (c) The yield equalization payment is the full yield                        

                                                                                

5   equalization payment divided by 3.                                          

                                                                                

6       (11) For state fiscal years after the 1997-1998 state fiscal                

                                                                                

7   year, distributions under this section for cities, villages, and            

                                                                                

8   townships with populations of less than 750,000 shall be                    

                                                                                

9   determined as follows:                                                      

                                                                                

10      (a) For the 1998-1999 state fiscal year, the payment under                  

                                                                                

11  this section for each city, village, and township shall be the              

                                                                                

12  sum of the following:                                                       

                                                                                

13                                                                               (i) Ninety percent of the total amount available for                                

                                                                                

14  distribution under subsections (8), (9), and (10) for the                   

                                                                                

15  1998-1999 state fiscal year multiplied by the city's, village's,            

                                                                                

16  or township's percentage share of the distributions under this              

                                                                                

17  section and section 12a minus the amount of a distribution under            

                                                                                

18  this section and section 12a to a city that is eligible to                  

                                                                                

19  receive a distribution under subsection (6) in the 1997-1998                

                                                                                

20  state fiscal year.                                                          

                                                                                

21      (ii) Ten percent of the total amount available for                           

                                                                                

22  distribution under subsections (8), (9), and (10) for the                   

                                                                                

23  1998-1999 state fiscal year multiplied by the percentage share of           

                                                                                

24  the distribution amounts calculated under subsections (8), (9),             

                                                                                

25  and (10).                                                                   

                                                                                

26      (b) For the 1999-2000 state fiscal year, the payment under                  

                                                                                

27  this section for each city, village, and township shall be the              


                                                                                

1   sum of the following:                                                       

                                                                                

2                                                                                (i) Eighty percent of the total amount available for                                

                                                                                

3   distribution under subsections (8), (9), and (10) for the                   

                                                                                

4   1999-2000 state fiscal year multiplied by the city's, village's,            

                                                                                

5   or township's percentage share of the distributions under this              

                                                                                

6   section and section 12a minus the amount of a distribution under            

                                                                                

7   this section and section 12a to a city that is eligible to                  

                                                                                

8   receive a distribution under subsection (6) in the 1997-1998                

                                                                                

9   state fiscal year.                                                          

                                                                                

10      (ii) Twenty percent of the total amount available for                        

                                                                                

11  distribution under subsections (8), (9), and (10) for the                   

                                                                                

12  1999-2000 state fiscal year multiplied by the city's, village's,            

                                                                                

13  or township's percentage share of the distribution amounts                  

                                                                                

14  calculated under subsections (8), (9), and (10).                            

                                                                                

15      (c) For the 2000-2001 state fiscal year, the payment under                  

                                                                                

16  this section for each city, village, and township shall be the              

                                                                                

17  sum of the following:                                                       

                                                                                

18                                                                               (i) Seventy percent of the total amount available for                               

                                                                                

19  distribution under subsections (8), (9), and (10) for the                   

                                                                                

20  2000-2001 state fiscal year multiplied by the city's, village's,            

                                                                                

21  or township's percentage share of the distributions under this              

                                                                                

22  section and section 12a minus the amount of a distribution under            

                                                                                

23  this section and section 12a to a city that is eligible to                  

                                                                                

24  receive a distribution under subsection (6) in the 1997-1998                

                                                                                

25  state fiscal year.                                                          

                                                                                

26      (ii) Thirty percent of the total amount available for                        

                                                                                

27  distribution under subsections (8), (9), and (10) for the                   


                                                                                

1   2000-2001 state fiscal year multiplied by the percentage share of           

                                                                                

2   the distribution amounts calculated under subsections (8), (9),             

                                                                                

3   and (10).                                                                   

                                                                                

4       (d) For the 2001-2002 state fiscal year, the payment under                  

                                                                                

5   this section for each city, village, and township shall be the              

                                                                                

6   sum of the following:                                                       

                                                                                

7                                                                                (i) Sixty percent of the total amount available for                                 

                                                                                

8   distribution under subsections (8), (9), and (10) for the                   

                                                                                

9   2001-2002 state fiscal year multiplied by the city's, village's,            

                                                                                

10  or township's percentage share of the distributions under this              

                                                                                

11  section and section 12a minus the amount of a distribution under            

                                                                                

12  this section and section 12a to a city that is eligible to                  

                                                                                

13  receive a distribution under subsection (6) in the 1997-1998                

                                                                                

14  state fiscal year.                                                          

                                                                                

15      (ii) Forty percent of the total amount available for                         

                                                                                

16  distribution under subsections (8), (9), and (10) for the                   

                                                                                

17  2001-2002 state fiscal year multiplied by the percentage share of           

                                                                                

18  the distribution amounts calculated under subsections (8), (9),             

                                                                                

19  and (10).                                                                   

                                                                                

20      (e) For the 2002-2003 state fiscal year, the payment under                  

                                                                                

21  this section for each city, village, and township shall be the              

                                                                                

22  sum of the following:                                                       

                                                                                

23                                                                               (i) Fifty percent of the total amount available for                                 

                                                                                

24  distribution under subsections (8), (9), and (10) for the                   

                                                                                

25  2002-2003 state fiscal year multiplied by the city's, village's,            

                                                                                

26  or township's percentage share of the distributions under this              

                                                                                

27  section and section 12a minus the amount of a distribution under            


                                                                                

1   this section and section 12a to a city that is eligible to                  

                                                                                

2   receive a distribution under subsection (6) in the 1997-1998                

                                                                                

3   state fiscal year.                                                          

                                                                                

4       (ii) Fifty percent of the total amount available for                         

                                                                                

5   distribution under subsections (8), (9), and (10) for the                   

                                                                                

6   2002-2003 state fiscal year multiplied by the percentage share of           

                                                                                

7   the distribution amounts calculated under subsections (8), (9),             

                                                                                

8   and (10).                                                                   

                                                                                

9       (f) For the 2003-2004 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) Forty percent of the total amount available for                                 

                                                                                

13  distribution under subsections (8), (9), and (10) for the                   

                                                                                

14  2003-2004 state fiscal year multiplied by the city's, village's,            

                                                                                

15  or township's percentage share of the distributions under this              

                                                                                

16  section 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) Sixty percent of the total amount available for                         

                                                                                

21  distribution under subsections (8), (9), and (10) for the                   

                                                                                

22  2003-2004 state fiscal year multiplied by the percentage share of           

                                                                                

23  the distribution amounts calculated under subsections (8), (9),             

                                                                                

24  and (10).                                                                   

                                                                                

25      (g) For the 2004-2005 state fiscal year, the payment under                  

                                                                                

26  this section for each city, village, and township shall be the              

                                                                                

27  sum of the following:                                                       


                                                                                

1                                                                                (i) Thirty percent of the total amount available for                                

                                                                                

2   distribution under subsections (8), (9), and (10) for the                   

                                                                                

3   2004-2005 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) Seventy percent of the total amount available for                       

                                                                                

10  distribution under subsections (8), (9), and (10) for the                   

                                                                                

11  2004-2005 state fiscal year multiplied by the percentage share of           

                                                                                

12  the distribution amounts calculated under subsections (8), (9),             

                                                                                

13  and (10).                                                                   

                                                                                

14      (h) For the 2005-2006 state fiscal year, the payment under                  

                                                                                

15  this section for each city, village, and township shall be the              

                                                                                

16  sum of the following:                                                       

                                                                                

17                                                                               (i) Twenty percent of the total amount available for                                

                                                                                

18  distribution under subsections (8), (9), and (10) for the                   

                                                                                

19  2005-2006 state fiscal year multiplied by the city's, village's,            

                                                                                

20  or township's percentage share of the distributions under this              

                                                                                

21  section and section 12a minus the amount of a distribution under            

                                                                                

22  this section and section 12a to a city that is eligible to                  

                                                                                

23  receive a distribution under subsection (6) in the 1997-1998                

                                                                                

24  state fiscal year.                                                          

                                                                                

25      (ii) Eighty percent of the total amount available for                        

                                                                                

26  distribution under subsections (8), (9), and (10) for the                   

                                                                                

27  2005-2006 state fiscal year multiplied by the percentage share of           


                                                                                

1   the distribution amounts calculated under subsections (8), (9),             

                                                                                

2   and (10).                                                                   

                                                                                

3       (i) For the period of October 1, 2006 through September 30,                 

                                                                                

4   2007, the payment under this section for each city, village, and            

                                                                                

5   township shall be the sum of the following:                                 

                                                                                

6                                                                                (i) Ten percent of the total amount available for                                   

                                                                                

7   distribution under subsections (8), (9), and (10) for the                   

                                                                                

8   2006-2007 state fiscal year multiplied by the city's, village's,            

                                                                                

9   or township's percentage share of the distributions under this              

                                                                                

10  section and section 12a minus the amount of a distribution under            

                                                                                

11  this section and section 12a to a city that is eligible to                  

                                                                                

12  receive a distribution under subsection (6) in the 1997-1998                

                                                                                

13  state fiscal year.                                                          

                                                                                

14      (ii) Ninety percent of the total amount available for                        

                                                                                

15  distribution under subsections (8), (9), and (10) for the                   

                                                                                

16  2006-2007 state fiscal year multiplied by the percentage share of           

                                                                                

17  the distribution amounts calculated under subsections (8), (9),             

                                                                                

18  and (10).                                                                   

                                                                                

19      (12) Except as otherwise provided in this subsection, the                   

                                                                                

20  total payment to any city, village, or township under this act              

                                                                                

21  and section 10 of article IX of the state constitution of 1963              

                                                                                

22  shall not increase by more than 8% over the amount of the payment           

                                                                                

23  under this act and section 10 of article IX of the state                    

                                                                                

24  constitution of 1963 in the immediately preceding state fiscal              

                                                                                

25  year.  From the amount not distributed because of the limitation            

                                                                                

26  imposed by this subsection, the department shall distribute an              

                                                                                

27  amount to certain cities, villages, and townships such that the             


                                                                                

1   percentage increase in the total payment under this act and                 

                                                                                

2   section 10 of article IX of the state constitution of 1963 from             

                                                                                

3   the immediately preceding state fiscal year to each of those                

                                                                                

4   cities, villages, and townships is equal to, but does not exceed,           

                                                                                

5   the percentage increase from the immediately preceding state                

                                                                                

6   fiscal year of any city, village, or township that does not                 

                                                                                

7   receive a distribution under this subsection.  This subsection              

                                                                                

8   does not apply for state fiscal years after the 2000 federal                

                                                                                

9   decennial census becomes official to a city, village, or township           

                                                                                

10  with a 10% or more increase in population from the official 1990            

                                                                                

11  federal decennial census to the official 2000 federal decennial             

                                                                                

12  census.                                                                     

                                                                                

13      (13) The percentage allocations to distributions under                      

                                                                                

14  subsections (8) to (10) pursuant to subsection (11) shall be                

                                                                                

15  calculated as if, in any state fiscal year, the amount                      

                                                                                

16  appropriated under this section for distribution to cities,                 

                                                                                

17  villages, and townships is 74.94% of 21.3% of the sales tax at a            

                                                                                

18  rate of 4%.  If the amount appropriated under this section to               

                                                                                

19  cities, villages, and townships is less than 74.94% of 21.3% of             

                                                                                

20  the sales tax at a rate of 4%, any reduction made necessary by              

                                                                                

21  this appropriation in distributions to cities, villages, and                

                                                                                

22  townships shall first be applied to the distribution under                  

                                                                                

23  subsections (8) to (10) and any remaining amount shall be applied           

                                                                                

24  to the other distributions under this section.                              

                                                                                

25      (14) A township that provides for or makes available fire,                  

                                                                                

26  police on a 24-hour basis either through contracting for or                 

                                                                                

27  directly employing personnel, water to 50% or more of its                   


                                                                                

1   residents, and sewer services to 50% or more of its residents and           

                                                                                

2   has a population of 10,000 or more or a township that has a                 

                                                                                

3   population of 20,000 or more shall use the unit type population             

                                                                                

4   weight factor under subsection (9)(a) for a city with the same              

                                                                                

5   population as the township.                                                 

                                                                                

6       (15) For a state fiscal year in which the sales tax                         

                                                                                

7   collections decrease from the sales tax collections for the                 

                                                                                

8   immediately preceding state fiscal year, the department shall               

                                                                                

9   reduce the amount to be distributed to a city with a population             

                                                                                

10  of 750,000 or more under subsection (6) by an amount determined             

                                                                                

11  by subtracting the amount the city is eligible for under section            

                                                                                

12  10 of article IX of the state constitution of 1963 for the state            

                                                                                

13  fiscal year from $333,900,000.00 and multiplying that result by             

                                                                                

14  the same percentage as the percentage decrease in sales tax                 

                                                                                

15  collections for that state fiscal year as compared to sales tax             

                                                                                

16  collections for the immediately preceding state fiscal year.                

                                                                                

17  This subsection does not apply to the 2002-2003 and 2003-2004               

                                                                                

18  state fiscal years.                                                         

                                                                                

19      (16) Notwithstanding any other provision of this section for                

                                                                                

20  the 1998-1999 state fiscal year, the total combined amount                  

                                                                                

21  received by each city, village, and township under this section             

                                                                                

22  and section 10 of article IX of the state constitution of 1963              

                                                                                

23  shall not be less than the combined amount received under this              

                                                                                

24  section, section 12a, and section 10 of article IX of the state             

                                                                                

25  constitution of 1963 in the 1997-1998 state fiscal year.  The               

                                                                                

26  increase, if any, for each city, village, and township from the             

                                                                                

27  1997-1998 state fiscal year, other than a city that receives a              


                                                                                

1   distribution under subsection (6), shall be reduced by a uniform            

                                                                                

2   percentage to the extent necessary to fund distributions under              

                                                                                

3   this subsection.                                                            

                                                                                

4       (17) The payments under subsections (3), (4), and (5) shall                 

                                                                                

5   be made during each October, December, February, April, June, and           

                                                                                

6   August.  Payments under subsections (3), (4), and (5) shall be              

                                                                                

7   based on collections from the sales tax at the rate of 4% in the            

                                                                                

8   2-month period ending the prior August 31, October 31, December             

                                                                                

9   31, February 28, April 30, and June 30, and for the 1996-1997 and           

                                                                                

10  1997-1998 state fiscal years only, the payments shall be reduced            

                                                                                

11  by 1/6 of the total distribution for the state fiscal year under            

                                                                                

12  section 12a.                                                                

                                                                                

13      (18) Payments under this section shall be made from revenues                

                                                                                

14  collected during the state fiscal year in which the payments are            

                                                                                

15  made.                                                                       

                                                                                

16      (19) Distributions provided for by this act are subject to an               

                                                                                

17  annual appropriation by the legislature.