December 6, 2007, Introduced by Reps. Bieda, Robert Jones, Wenke, Condino, Corriveau, Angerer and Dean and referred to the Committee on Tax Policy.
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
(MCL 125.2651 to 125.2672) by adding section 15a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 15a. (1) If the amount of tax increment revenues lost as
a result of the personal property tax exemptions provided by
section 1211(4) of the revised school code, 1976 PA 451, MCL
380.1211, section 3 of the state education tax act, 1993 PA 331,
MCL 211.903, section 14(4) of 1974 PA 198, MCL 207.564, and section
9k of the general property tax act, 1893 PA 206, MCL 211.9k, will
reduce the allowable school tax capture received in a fiscal year
by an authority under section 16 used to repay an advance made
before July 12, 2007, or to pay an obligation issued or incurred
before July 12, 2007, the legislature shall appropriate and
distribute to the authority the amount described in subsection (5).
(2) Not less than 30 days before the first day of a fiscal
year, an authority eligible to retain tax increment revenues from
taxes levied by a local or intermediate school district or this
state or to receive a distribution under this section for that
fiscal year shall file a claim with the department of treasury. The
claim shall include the following information:
(a) The property tax millage rates expected to be levied by
local school districts within the jurisdictional area of the
authority for school operating purposes for that fiscal year.
(b) The tax increment revenues estimated to be received by the
authority for that fiscal year based upon actual property tax
levies of all taxing jurisdictions within the jurisdictional area
of the authority.
(c) The tax increment revenues the authority estimates it
would have received for that fiscal year if the personal property
tax exemptions described in subsection (1) were not in effect.
(d) A list and documentation of obligations issued or incurred
before July 12, 2007 and advances made before July 12, 2007 and the
payments due on each of those obligations and advances in that
fiscal year, and the total amount of all the payments due on those
obligations and advances in that fiscal year.
(e) The amount of money, other than tax increment revenues,
estimated to be received in that fiscal year by the authority that
is primarily pledged to, and to be used for, the payment of an
obligation issued or incurred before July 12, 2007 or the repayment
of an advance made before July 12, 2007. That amount shall not
include excess tax increment revenues of the authority that are
permitted by law to be retained by the authority for purposes that
further the development program. However, that amount shall include
money to be obtained from sources authorized by law, which law is
enacted on or after December 1, 1993, for use by the municipality
or authority to finance a development plan.
(f) The amount of a distribution received pursuant to this act
for a fiscal year in excess of or less than the distribution that
would have been required if calculated upon actual tax increment
revenues received for that fiscal year.
(g) A list and documentation of other protected obligations
and the payments due on each of those other protected obligations
in that fiscal year, and the total amount of all the payments due
on those other protected obligations in that fiscal year.
(3) For the fiscal year that commences after September 30,
2007 and before October 1, 2008, an authority may make a claim with
all information required by subsection (2) at any time after March
15, 2008.
(4) After review and verification of claims submitted under
this section, amounts appropriated by this state in compliance with
this act shall be distributed as 2 equal payments on March 1 and
September 1 after receipt of a claim. An authority shall allocate a
distribution it receives for an eligible obligation issued on
behalf of a municipality to the municipality.
(5) Subject to subsections (6) and (7), the aggregate amount
to be appropriated and distributed under this section to an
authority shall be the sum of the amounts determined under
subdivisions (a) and (b) minus the amount determined under
subdivision (c), as follows:
(a) The amount by which the tax increment revenues the
authority would have received for the fiscal year, excluding taxes
exempt under section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff, if the personal property tax exemptions described
in subsection (1) were not in effect, exceed the tax increment
revenues the authority actually received for the fiscal year.
(b) A shortfall required to be reported under subsection
(2)(f) that had not previously increased a distribution.
(c) An excess amount required to be reported under subsection
(2)(f) that had not previously decreased a distribution.
(6) If the payments required by this section exceed the amount
appropriated for that purpose, the amounts distributed under this
section shall first be paid to authorities for the amount that the
amount described in subsection (2)(d) exceeds the sum of the
amounts described in subsection (2)(b) and (e).
(7) A distribution under this section replacing tax increment
revenues pledged by an authority or a municipality is subject to
the lien of the pledge, whether or not there has been physical
delivery of the distribution.
(8) Obligations for which distributions are made under this
section are not a debt or liability of this state; do not create or
constitute an indebtedness, liability, or obligation of this state;
and are not and do not constitute a pledge of the faith and credit
of this state.
(9) Not later than July 1 of each year, the authority shall
certify to the local tax collecting treasurer the amount of the
distribution required under subsection (5), calculated without
regard to the receipt of tax increment revenues attributable to
local or intermediate school district taxes or attributable to
taxes levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(10) Calculations of distributions under this section and
claims reports required to be made under subsection (2) shall be
made on the basis of each development area of the authority.
(11) The state tax commission may provide that the
reimbursement calculations under this section and the calculation
of allowable capture of school taxes shall be made for each
calendar year's tax increment revenues using a 12-month debt
payment period used by the authority and approved by the state tax
commission.
(12) As used in this section:
(a) "Advance" means that term as defined in section 1 of 1975
PA 197, MCL 125.1651.
(b) "Obligation" means that term as defined in section 1 of
1975 PA 197, MCL 125.1651.