BROWNFIELD REVELOPMENT TAX CAPTURE

House Bill 6303

Sponsor:  Rep. Jerry O. Kooiman

Committee:  Commerce

Complete to 9-19-06

A SUMMARY OF HOUSE BILL 6303 AS INTRODUCED 6-29-06

Under the Brownfield Redevelopment Financing Act, the brownfield plan that the board of a brownfield authority approves must contain, among other things, a description of the costs of the plan to be funded by tax increment finance revenues, a summary of eligible activities proposed for the property, and an estimate of the captured taxable value and tax increment revenues for each year of the plan for each parcel of eligible property.  The plan must also contain the duration of the brownfield plan, which is limited under the act, generally speaking, to the lesser of (1) the number of years it takes to capture sufficient revenue to cover the permitted costs of the project, or (2) 30 years.  House Bill 6303 would require that, in describing the duration of eligible activities on eligible property, the plan would also have to also specify the beginning date for the capture of tax increment revenues, which could be no later than three years following the date of the resolution that added the eligible property to the brownfield plan.

MCL 125.2663

FISCAL IMPACT:

There is no fiscal impact on the State of Michigan or its local units of government.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Richard Child

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.