September 6, 2007, Introduced by Reps. Sheltrown and Rick Jones and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2005 PA 280, entitled
"Corridor improvement authority act,"
by amending section 18 (MCL 125.2888), as amended by 2007 PA 44.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 18. (1) If the authority determines that it is necessary
for the achievement of the purposes of this act, the authority
shall prepare and submit a tax increment financing plan to the
governing body of the municipality. The plan shall include a
development plan as provided in section 21, a detailed explanation
of the tax increment procedure, the maximum amount of bonded
indebtedness to be incurred, and the duration of the program, and
shall be in compliance with section 19. The plan shall contain a
statement of the estimated impact of tax increment financing on the
assessed values of all taxing jurisdictions in which the
development area is located. The plan may provide for the use of
part or all of the captured assessed value, but the portion
intended to be used by the authority shall be clearly stated in the
tax increment financing plan. The authority or municipality may
exclude from captured assessed value growth in property value
resulting solely from inflation. The plan shall set forth the
method for excluding growth in property value resulting solely from
inflation.
(2) Approval of the tax increment financing plan shall comply
with the notice, hearing, and disclosure provisions of section 22.
If the development plan is part of the tax increment financing
plan, only 1 hearing and approval procedure is required for the 2
plans together.
(3) Before the public hearing on the tax increment financing
plan, the governing body shall provide a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to meet
with the governing body. The authority shall fully inform the
taxing jurisdictions of the fiscal and economic implications of the
proposed development area. The taxing jurisdictions may present
their recommendations at the public hearing on the tax increment
financing plan. The authority may enter into agreements with the
taxing jurisdictions and the governing body of the municipality in
which the development area is located to share a portion of the
captured assessed value of the development area.
(4) A tax increment financing plan may be modified if the
modification is approved by the governing body upon notice and
after public hearings and agreements as are required for approval
of the original plan.
(5) Except for a development area located in a qualified
development area or as otherwise provided in this subsection, not
more than 60 days after the public hearing, the governing body in a
taxing jurisdiction levying ad valorem property taxes that would
otherwise be subject to capture may exempt its taxes from capture
by adopting a resolution to that effect and filing a copy with the
clerk
of the municipality proposing to create the authority. The
Beginning with a public hearing held on or after January 1, 2008 by
a governing body on the tax increment financing plan, if the
governing body approves the tax increment financing plan, then only
the ad valorem property taxes of that municipality are subject to
capture under this act. The taxes of the other taxing jurisdictions
levying ad valorem property taxes located inside the boundaries of
the authority are subject to capture only if the governing body of
the taxing jurisdiction consents to the capture by adopting a
resolution to that effect and filing a copy with the clerk of the
municipality creating the authority. A resolution described in this
subsection shall take effect when filed with the clerk and remains
effective until a copy of a resolution rescinding that resolution
is filed with that clerk.