HOUSE BILL No. 5539

 

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.