SPECIAL ASSESSMENTS: POLICE & FIRE S.B. 1286: FLOOR SUMMARY
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Senate Bill 1286 (as reported without amendment)
Sponsor: Senator Jason E. Allen
Committee: Local, Urban and State Affairs

CONTENT
The bill would amend Public Act 33 of 1951, which provides for police and fire protection for townships, certain incorporated villages, and certain cities, to refer to land and premises exempt from general ad valorem property taxes under the General Property Tax Act and not subject to a specific tax, instead of land and premises exempt from taxes under that Act, in provisions that exclude this property from a special assessment to defray the costs of police and fire protection.


Under Public Act 33, the township board of a township, or the township boards of adjoining townships acting jointly, may purchase police and fire motor vehicles, apparatus, equipment, and housing, and appropriate funds for that purpose. The township board or boards also may provide that the sums for purchasing, housing, and/or operating the equipment, may be defrayed by special assessment on the land and premises in the township or townships to be benefited, except land and premises exempt from the collection of taxes under the General Property Tax Act, and may issue bonds in anticipation of the collection of the special assessment.


In the provision described above and in other provisions in the Act, instead of "lands and premises exempt from the collection of taxes under the General Property Tax Act", the bill would refer to land and premises exempt from the collection of general ad valorem property taxes under the Act and not subject to a specific tax.


MCL 41.801 Legislative Analyst: Craig Laurie

FISCAL IMPACT
The bill would have no impact on State or local revenue, or State expenditures, but could increase local unit revenue from special assessments. The amount of any increase would depend upon the number of local units affected, the applicable millage rates, and the specific characteristics of the affected property.


It is possible that the bill would have no impact on local unit revenue, because the bill would change the size of the tax base available for a special assessment. To the extent that a local unit generated the same amount of revenue from the special assessment, the bill would allow a lower millage rate by expanding the taxable value of property against which the assessment could be levied. As a result, taxpayers who pay the levy under current law could experience a reduction in taxes while those exempted from the levy under current law would experience an increase.


Date Completed: 9-29-08 Fiscal Analyst: David Zin


floor\sb1286 Analysis available @ http://www.michiganlegislature.org
 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1286/0708