May 5, 2015, Introduced by Rep. Yonker and referred to the Committee on Tax Policy.
A bill to amend 2014 PA 86, entitled
"Local community stabilization authority act,"
by amending sections 5, 13, 14, 17, 19, and 20 (MCL 123.1345,
123.1353, 123.1354, 123.1357, 123.1359, and 123.1360).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. As used in this act:
(a) "Acquisition cost" means that term as defined in section 3
of the state essential services assessment act, 2014 PA 92, MCL
211.1053, multiplied by the following percentages:
(i) For eligible personal property reported to the department
and described in section 5(2)(a) of the state essential services
assessment act, 2014 PA 92, MCL 211.1055, 100%.
(ii) For eligible personal property reported to the department
and described in section 5(2)(b) of the state essential services
assessment act, 2014 PA 92, MCL 211.1055, 52.1%.
(iii) For eligible personal property reported to the department
and described in section 5(2)(c) of the state essential services
assessment act, 2014 PA 92, MCL 211.1055, 37.5%.
(b) "Ambulance services" means patient transport services,
nontransport prehospital life support services, and advanced life
support, paramedic, and medical first-responder services.
(c) "Authority" means the local community stabilization
authority, a metropolitan authority established under section 7.
(d) "Captured value" means 1 or more of the following:
(i) For a tax increment finance authority under the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
captured taxable value as determined in sections 2 and 7 of the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2652
and 125.2657.
(ii) For a tax increment finance authority under 1975 PA 197,
MCL 125.1651 to 125.1681, captured assessed value as defined in
section 1 of 1975 PA 197, MCL 125.1651.
(iii) For a tax increment finance authority under the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, captured assessed value as defined in section 1 of the
tax increment finance authority act, 1980 PA 450, MCL 125.1801.
(iv) For a tax increment finance authority under the local
development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
captured assessed value as defined in section 2 of the local
development financing act, 1986 PA 281, MCL 125.2152.
(v) For a tax increment finance authority under the historic
neighborhood tax increment finance authority act, 2004 PA 530, MCL
125.2841 to 125.2866, captured assessed value as defined in section
2 of the historic neighborhood tax increment finance authority act,
2004 PA 530, MCL 125.2842.
(vi) For a tax increment finance authority under the corridor
improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899,
captured assessed value as defined in section 2 of the corridor
improvement authority act, 2005 PA 280, MCL 125.2872.
(vii) For a tax increment finance authority under the
neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to
125.2932, captured assessed value as defined in section 2 of the
neighborhood improvement authority act, 2007 PA 61, MCL 125.2912.
(viii) For a tax increment finance authority under the water
resource improvement tax increment finance authority act, 2008 PA
94, MCL 125.1771 to 125.1793, captured assessed value as defined in
section 2 of the water resource improvement tax increment finance
authority act, 2008 PA 94, MCL 125.1772.
(ix) For a tax increment finance authority under the private
investment infrastructure funding act, 2010 PA 250, MCL 125.1871 to
125.1883, captured assessed value as defined in section 2 of the
private investment infrastructure funding act, 2010 PA 250, MCL
125.1872.
(x) For a tax increment finance authority under the nonprofit
street railway act, 1867 PA 35, MCL 472.1 to 472.27, captured
assessed value as defined in section 23 of the nonprofit street
railway act, 1867 PA 35, MCL 472.23.
(e) "Commercial personal property" means, except as otherwise
provided in subparagraph (iii), all of the following:
(i) Personal property classified as commercial personal
property under section 34c of the general property tax act, 1893 PA
206, MCL 211.34c.
(ii) Personal property subject to the industrial facilities tax
under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is
sited on land classified as commercial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(iii) Commercial personal property does not include personal
property that after 2012 was classified in the municipality where
it is currently located as real property or utility personal
property.
(f) "Council" means the council established for the authority
under section 9.
(g) "Debt loss" means, for a municipality that is not a local
school district, intermediate school district, or tax increment
finance authority, the amount of ad valorem property taxes and any
specific tax levied for the payment of principal and interest of
obligations either approved by the voters before January 1, 2013 or
incurred before January 1, 2013 pledging the unlimited or limited
taxing power of the municipality that are lost as a result of the
exemption of industrial personal property and commercial personal
property under sections 9m, 9n, and 9o of the general property tax
act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o.
(h) "Department" means the department of treasury.
(i) "Eligible personal property" means personal property
described in section 3(e)(i), (iii), and (iv) of the state essential
services assessment act, 2014 PA 92, MCL 211.1053.
(j) "Essential services" means all of the following:
(i) Ambulance services.
(ii) Fire services.
(iii) Police services.
(iv) Jail operations.
(v) The funding of pensions for personnel providing services
described in subparagraphs (i) to (iv).
(k) "Fire services" means services in the prevention and
suppression of fire, homeland security response, hazardous
materials response, rescue, fire marshal, and medical first-
responder services.
(l) "Fiscal year" means either an annual period that begins on
October 1 and ends on September 30 or the fiscal year for the
authority established by the council.
(m) "Increased captured value" means the anticipated increase
in captured value for all industrial personal property and
commercial personal property in a tax increment finance authority
that would have occurred as a result of either the addition of
personal property as part of a specific project or the expiration
of an exemption under section 7k, 7ff, or 9f of the general
property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,
after 2013 if the exemptions under section 9m, 9n, or 9o of the
general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and
211.9o, were not in effect. In order for an anticipated increase in
captured value to qualify as increased captured value, the tax
increment financing plan must have demonstrated before 2013 that
the tax increment finance authority was relying on this anticipated
increase in captured value to pay 1 or more qualified obligations
by specifically projecting the anticipated increase in captured
value that would be used to pay the qualified obligations and the
plan must meet all of the following:
(i) The tax increment financing plan was fully approved by the
governing body of the applicable local government not later than
December 31, 2012. This does not prevent subsequent amendment to
the tax increment financing plan, provided the amendment does not
change the amount of any obligation under the plan, the scope of
the project or projects described in the plan, or the time needed
to repay any obligation.
(ii) If the tax increment financing plan is part of a
brownfield plan under the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2672, any needed work plans were
also approved by the appropriate state agencies not later than
December 31, 2012. This does not prevent subsequent amendment to a
work plan, provided the amendment does not change the amount of any
obligation under the plan, the scope of the project or projects
described in the plan, or the time needed to repay any obligation.
(iii) The tax increment financing plan identifies a particular
site owner and site occupant that is engaged in industrial
processing or direct integrated support, as defined in section 9m
of the general property tax act, 1893 PA 206, MCL 211.9m. This does
not preclude a change in the site owner or occupant, provided that
change in the site owner or occupant did not result from a
financial difficulty encountered during the construction and
installation of the project and provided change in the site owner
or occupant will not result in any change in the project.
(iv) The tax increment financing plan identifies a particular
project on a specific parcel and that project includes the addition
of particular personal property that is eligible manufacturing
personal property, as defined in section 9m of the general property
tax act, 1893 PA 206, MCL 211.9m, that is also identified in the
tax increment financing plan.
(v) The personal property that is eligible manufacturing
personal property, as defined in section 9m of the general property
tax act, 1893 PA 206, MCL 211.9m, and is identified in the tax
increment financing plan comprises not less than 20% of the true
cash value of the improvements to be made as part of the specific
project identified in the tax increment financing plan. The
requirement under this subparagraph does not apply to the addition
of personal property as a result of the expiration of an exemption
under section 7k, 7ff, or 9f of the general property tax act, 1893
PA 206, MCL 211.7k, 211.7ff, and 211.9f.
(vi) Before December 31, 2012, the specific project identified
in the tax increment financing plan had obtained all necessary
local zoning approvals, including any necessary rezoning, special
land use, and site plan approvals for that project.
(vii) Before December 31, 2012, orders had been placed and
significant investments made in the personal property that is
eligible manufacturing personal property, as defined in section 9m
of the general property tax act, 1893 PA 206, MCL 211.9m, to be
located on the site.
(n) "Increased value from expired tax exemptions" means the
increase in taxable value subject to tax of industrial personal
property and commercial personal property placed in service before
2013 that would have occurred after 2013 if the exemptions under
section 9m or 9n of the general property tax act, 1893 PA 206, MCL
211.9m and 211.9n, were not in effect as a result of the expiration
of an exemption under section 7k, 7ff, or 9f of the general
property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,
that had been in effect in 2013, assuming an exemption under
section 7k of the general property tax act, 1893 PA 206, MCL
211.7k, was not extended under section 11a of 1974 PA 198, MCL
207.561a, and an exemption under section 9f of the general property
tax act, 1893 PA 206, MCL 211.9f, was not extended under section
9f(8) of the general property tax act, 1893 PA 206, MCL 211.9f.
(o) "Industrial personal property" means, except as otherwise
provided in subparagraph (iii), all of the following:
(i) Personal property classified as industrial personal
property under section 34c of the general property tax act, 1893 PA
206, MCL 211.34c.
(ii) Personal property subject to the industrial facilities tax
under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is
sited on land classified as industrial real property under section
34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(iii) Industrial personal property does not include personal
property that after 2012 was classified in the municipality where
it is currently located as real property or utility personal
property.
(p) "Jail operations" means all of the following:
(i) The operation of a jail, holding cell, holding center, or
lockup as those terms are defined in section 62 of the corrections
code of 1953, 1953 PA 232, MCL 791.262.
(ii) The operation of a juvenile detention facility by a county
juvenile agency as authorized under section 7 of the county
juvenile agency act, 1998 PA 518, MCL 45.627.
(q) "Local community stabilization share" means that portion
of the use tax levied by the authority and authorized under the use
tax act, 1937 PA 94, MCL 205.91 to 205.111.
(r) "Municipality" includes, but is not limited to, the
following:
(i) Counties.
(ii) Cities.
(iii) Villages.
(iv) Townships.
(v) Authorities, excluding an authority created under this
act.
(vi) Local school districts.
(vii) Intermediate school districts.
(viii) Community college districts.
(ix) Libraries.
(x) Other local and intergovernmental taxing units.
(s) "Personal property exemption loss" means 1 of the
following:
(i) For a municipality that is not a local school district,
intermediate school district, or tax increment finance authority,
the 2013 taxable value of commercial personal property and
industrial personal property minus the current year taxable value
of commercial personal property and industrial personal property
and minus the small taxpayer exemption loss.
(ii) For a municipality that is a local school district,
intermediate school district, or tax increment finance authority,
the 2013 taxable value of commercial personal property and
industrial personal property minus the current year taxable value
of commercial personal property and industrial personal property.
(t) "Police services" means law enforcement services for the
prevention and detection of crime, the enforcement of laws and
ordinances, homeland security response, and medical first-responder
services.
(u) "Qualified loss" means the amounts calculated under
section
14(1) and (3) that are not distributed to the municipality
under
section 17(3)(a).17(4)(a).
(v) "Qualified obligation" means a written promise to pay by a
tax increment finance authority, whether evidenced by a contract,
agreement, lease, sublease, bond, resolution promising repayment of
an advance, or note, or a requirement to pay imposed by law. A
qualified obligation does not include a payment required solely
because of default upon an obligation, employee salary, or
consideration paid for the use of municipal offices. A qualified
obligation does not include bonds that have been economically
defeased by refunding.
(w) "School debt loss" means the amount of revenue lost from
ad valorem property taxes and any specific tax specifically levied
for the payment of principal and interest of obligations approved
by the electors before January 1, 2013 or obligations pledging the
unlimited taxing power of a local school district or intermediate
school district incurred before January 1, 2013, as a result of the
exemption of industrial personal property and commercial personal
property under sections 9m, 9n, and 9o of the general property tax
act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o.
(x) "School operating loss not reimbursed by the school aid
fund" means the amount of revenue lost from ad valorem property
taxes levied under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, as a result of the exemption of industrial
personal property and commercial personal property under sections
9m, 9n, and 9o of the general property tax act, 1893 PA 206, MCL
211.9m, 211.9n, and 211.9o, for mills other than basic school
operating mills, as that term is defined in section 2c of the use
tax act, 1937 PA 94, MCL 205.92c.
(y) "Small taxpayer exemption loss" means 1 of the following:
(i) For the 2014 calendar year, the 2013 taxable value of
commercial personal property and industrial personal property minus
the 2014 taxable value of commercial personal property and
industrial personal property.
(ii) For the 2015 calendar year and subsequent calendar years,
the greater of the amount calculated under subparagraph (i) and the
2013 taxable value of commercial personal property and industrial
personal property minus the 2015 taxable value of commercial
personal property and industrial personal property.
(z)
"Specific tax" means a tax levied under any of the
following:
(i) 1974
PA 198, MCL 207.551 to 207.572.
(ii) The commercial redevelopment act, 1978 PA 255, MCL
207.651
to
207.668.
(iii) The commercial rehabilitation act, 2005 PA 210,
MCL
207.841
to 207.856.
(aa) "Tax increment finance authority" means an authority
created under 1 or more of the following:
(i) 1975 PA 197, MCL 125.1651 to 125.1681.
(ii) The tax increment finance authority act, 1980 PA 450, MCL
125.1801 to 125.1830.
(iii) The local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174.
(iv) The brownfield redevelopment financing act, 1996 PA 381,
MCL 125.2651 to 125.2672.
(v) The historic neighborhood tax increment finance authority
act, 2004 PA 530, MCL 125.2841 to 125.2866.
(vi) The corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(vii) The neighborhood improvement authority act, 2007 PA 61,
MCL 125.2911 to 125.2932.
(viii) The water resource improvement tax increment finance
authority act, 2008 PA 94, MCL 125.1771 to 125.1793.
(ix) The private investment infrastructure funding act, 2010 PA
250, MCL 125.1871 to 125.1883.
(x) The nonprofit street railway act, 1867 PA 35, MCL 472.1 to
472.27.
(bb) "Tax increment small taxpayer loss" means the amount of
revenue lost by a municipality that is a tax increment finance
authority due to the exemption provided by section 9o of the
general property tax act, 1893 PA 206, MCL 211.9o.
(cc) "Taxable value" means all of the following:
(i) Except as otherwise provided in subparagraph (ii), that
value determined under section 27a of the general property tax act,
1893 PA 206, MCL 211.27a.
(ii) For real or personal property subject to the industrial
facilities tax under section 14(3) or (4) of 1974 PA 198, MCL
207.564, 50% of that value determined under section 27a of the
general property tax act, 1893 PA 206, MCL 211.27a.
(dd) "Total qualified loss" means the total amount of
qualified losses of all municipalities, as determined by the
department.
(ee) "Utility personal property" means that term as described
in section 34c of the general property tax act, 1893 PA 206, MCL
211.34c.
Sec. 13. (1) Not later than June 5, 2014, the assessor for
each city and township shall report to the county equalization
director all of the following:
(a) The 2013 taxable value of commercial personal property and
industrial personal property for each municipality in the city or
township.
(b) The 2014 taxable value of commercial personal property and
industrial personal property for each municipality in the city or
township.
(c) The small taxpayer exemption loss for each municipality in
the city or township.
(2) Not later than June 20, 2014, the equalization director
for each county shall report to the department the information
described in subsection (1) for each municipality in the county.
For each municipality levying a millage in more than 1 county, the
county equalization director responsible for compiling the
municipality's taxable value under section 34d of the general
property tax act, 1893 PA 206, MCL 211.34d, shall compile the
municipality's information described in subsection (1).
(3)
Not later than June 5, 2016, 2015,
and each June 5
thereafter, the assessor for each city and township shall report to
the county equalization director the current year taxable value of
commercial personal property and industrial personal property for
each municipality in the city or township. Not later than June 20,
2016,
2015, and each June 20 thereafter, the equalization
director
for each county shall report to the department the current year
taxable value of commercial personal property and industrial
personal property for each municipality in the county. For each
municipality levying a millage in more than 1 county, the county
equalization director responsible for compiling the municipality's
taxable value under section 34d of the general property tax act,
1893 PA 206, MCL 211.34d, shall compile the municipality's
information described in this subsection.
(4) Not later than August 15, 2014, and each August 15
thereafter, each municipality shall report to the department the
millage rate levied or to be levied that year for a millage
described in section 5(g) or (w) that is used to calculate an
appropriation under section 17(1)(a) or a distribution under
section
17(3)(a)(i). 17(4)(a)(i). For 2014 and 2015, the
rate of
that millage shall be calculated using the sum of the
municipality's taxable value and the municipality's small taxpayer
exemption loss. Beginning in 2016 and each year thereafter, the
rate of that millage shall be calculated using the sum of the
municipality's taxable value and the municipality's personal
property exemption loss. For 2014 and 2015, the department shall
calculate each municipality's debt loss or school debt loss by
multiplying the municipality's millage rate reported under this
subsection by the municipality's small taxpayer exemption loss.
Beginning in 2016 and each year thereafter, the department shall
calculate each municipality's school debt loss by multiplying the
municipality's millage rate reported under this subsection by the
municipality's personal property exemption loss.
(5) The department shall calculate and make available to each
municipality by May 1 of each year that municipality's sum of the
lowest rate of each individual millage levied in the period between
2012 and the year immediately preceding the current year. For a
municipality, other than a municipality described in section 14,
the calculation shall exclude debt millage. For an individual
millage rate not levied in 1 of the years, the lowest millage rate
is zero. A millage used to make the calculations under this act
must be levied against both real property and personal property.
(6) Not later than June 5, 2016, and each June 5 thereafter,
the assessor for each city and township shall report to the county
equalization director the increased value from expired tax
exemptions for each municipality that is subject to section 14(2)
and that levies taxes in the city or township. Not later than June
20, 2016, and each June 20 thereafter, the equalization director
for each county shall report to the department the increased value
from expired tax exemptions for each municipality that is subject
to section 14(2) and that levies taxes in the city or township. For
each municipality subject to section 14(2) that levies a millage in
more than 1 county, the county equalization director responsible
for compiling the municipality's taxable value under section 34d of
the general property tax act, 1893 PA 206, MCL 211.34d, shall
compile the municipality's information described in this
subsection.
Sec. 14. (1) Not later than August 15, 2016, and each August
15 thereafter, for each municipality that is not a local school
district, intermediate school district, or tax increment finance
authority, the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the municipality's personal property exemption
loss by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this subsection. An adjustment under this subdivision shall only be
made for municipalities for which changes in prior year taxable
values can be calculated from taxable values reported under section
151(1) of the state school aid act of 1979, 1979 PA 94, MCL
388.1751.
(d) Adjust the amount calculated under subdivision (b), as
adjusted by subdivision (c), by the amount calculated under section
16a(2) for captured taxes levied by the municipality not including
taxes attributable to increased captured value.
(2) Not later than August 15, 2016, and each August 15
thereafter, for each municipality that is a county, township,
village, city, or authority that provides essential services, the
department shall do all of the following:
(a) Add to the amount calculated under subsection (1)(a) any
increased value from expired tax exemptions for the current year.
(b) Subtract from the amount calculated under subdivision (a)
the amount calculated under section 16a(2)(b) for the municipality,
not including any amount attributable to increased captured value.
(c) Multiply the result of the calculation in subdivision (b)
by the millage rate calculated under section 13(5) for general
operating millage.
(d) Multiply the result of the calculation in subdivision (c)
by the percentage of the municipality's general operating millage
used to fund the cost of essential services in the municipality's
fiscal
year ending in 2012. Each municipality's The department
shall calculate each municipality's percentage of general operating
millage used to fund the cost of essential services in the
municipality's fiscal year ending in 2012, unless the municipality
includes the calculation in its comprehensive annual financial
report for the municipality's fiscal year ending in either 2014
must
include a calculation of the municipality's percentage of
general
operating revenues used to fund essential services in the
municipality's
fiscal year ending in 2012.or
2015 or otherwise
reports the calculation to the department in a form and in a manner
prescribed by the department.
(e) Add to the result of the calculation in subdivision (d) an
amount calculated by multiplying the amount calculated under
subsection (2)(b) by the millage rates calculated under section
13(5) that are dedicated solely for the cost of essential services
levied on industrial personal property and commercial personal
property. A millage levied to fund a pension under the fire
fighters and police officers retirement act, 1937 PA 345, MCL
38.551 to 38.562, is dedicated solely for the cost of essential
services.
(3)
Not later than August 15, 2016, September
15, 2015, for
each municipality that is a city, the department shall do all of
the following:
(a) Calculate the municipality's small taxpayer exemption
loss.
(b) Multiply the amount calculated under subdivision (a) by
the millage rates calculated under section 13(5) for 2014.
(c) Multiply the amount calculated under subdivision (a) by
the millage rates calculated under section 13(5) for 2015.
(d) Add the amounts calculated under subdivisions (b) and (c).
(e) Subtract from the amount calculated under subdivision (d)
the sum of the municipality's debt loss for 2014 and 2015.
(f) Subtract from the amount calculated under subdivision (e)
the amount of any tax increment small taxpayer loss for captured
taxes levied by the municipality in 2014 and 2015.
(4) Not later than August 15, 2016, and each August 15
thereafter, for each municipality that is not a local school
district, intermediate school district, or tax increment finance
authority, the department shall do all of the following:
(a) Calculate the municipality's small taxpayer exemption
loss.
(b) Multiply the municipality's small taxpayer exemption loss
by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the
amount required to reflect the final order of a court or body of
competent jurisdiction related to any prior year calculation under
this subsection. An adjustment under this subdivision shall only be
made for municipalities for which changes in prior year taxable
values can be calculated from taxable values reported under section
151(1) of the state school aid act of 1979, 1979 PA 94, MCL
388.1751.
(d) Adjust the amount calculated under subdivision (b), as
adjusted by subdivision (c), by the amount calculated under section
16a(2) for captured taxes levied by the municipality not including
taxes attributable to increased captured value. The adjustment
under this subdivision shall only be made to the extent that the
adjustment made under subsection (1)(d) did not fully account for
all captured taxes levied by the municipality not including taxes
attributable to increased captured value.
Sec. 17. (1) The legislature shall appropriate funds for all
of the following purposes:
(a) For fiscal year 2014-2015 and fiscal year 2015-2016, to
the authority, an amount equal to all debt loss for municipalities
that are not a local school district, intermediate school district,
or tax increment finance authority, an amount equal to all school
debt loss for municipalities that are a local school district or
intermediate school district, and an amount equal to all tax
increment small taxpayer loss for municipalities that are a tax
increment finance authority.
(b)
Beginning in For fiscal year 2014-2015 and each fiscal
year
thereafter, through fiscal
year 2018-2019 an amount equal to
the
necessary expenses incurred by the authority and the department
in implementing this act.
(c) Beginning in fiscal year 2019-2020 and each fiscal year
thereafter, an amount equal to the necessary expenses incurred by
the authority and the department in implementing this act.
(2) In fiscal year 2014-2015 and fiscal year 2015-2016, the
authority shall distribute to municipalities those funds
appropriated under subsection (1)(a). However, in fiscal year 2014-
2015, if the authority is not able to make the distribution under
this subsection, the department shall make the distribution under
this subsection on behalf of the authority.
(3) For calendar years 2014 and 2015, the authority shall
distribute local community stabilization share revenue to each city
in an amount determined by multiplying the local community
stabilization share revenue for the calendar years by a fraction,
the numerator of which is that city's amount calculated under
section 14(3) and the denominator of which is the total amount
calculated under section 14(3).
(4) (3)
Beginning in fiscal year
2015-2016, for calendar year
2016, the authority shall distribute local community stabilization
share revenue as follows in the following order of priority:
(a) The authority shall distribute to each municipality an
amount equal to all of the following:
(i) 100% of that municipality's school debt loss in the current
year and 100% of its amount calculated under section 15.
(ii) 100% of that municipality's amount calculated under
section 16.
(iii) 100% of that municipality's school operating loss not
reimbursed by the school aid fund in the current year.
(iv) 100% of the amount calculated in section 14(2). However,
the amount distributed to a municipality under this subparagraph
shall not exceed the amount calculated in section 14(1)(d). All
distributions under this subparagraph shall be used to fund
essential services.
(v) For a municipality that is a tax increment finance
authority, 100% of its amount calculated under section 16a(2).
(vi) 100% of that municipality's amount calculated under
section 14(4).
(b)
Beginning in fiscal year 2019-2020, for calendar year
2019, after the distributions under subdivision (a), and subject to
subparagraph (viii), the authority shall distribute 5% of the
remaining balance of the local community stabilization share fund
for
the current fiscal calendar
year to each municipality that is
not a local school district, intermediate school district, or tax
increment finance authority in an amount determined as follows:
(i) Calculate the total acquisition cost of all eligible
personal property in the municipality.
(ii) Multiply the result of the calculation in subparagraph (i)
by the sum of the lowest rate of each individual millage levied by
the municipality in the period between 2012 and the year
immediately preceding the current year that is not used to
calculate a distribution under subdivision (a). For an individual
millage rate not levied in 1 of the years, the lowest millage rate
is zero. A millage used to make the calculation under this
subparagraph must be eligible to be levied against both real
property and personal property.
(iii) Divide the sum of the amounts calculated under
subparagraph (ii) for all municipalities subject to the calculation
by total qualified loss.
(iv) Multiply the result of the calculation in subparagraph (iii)
by the amount calculated under section 16a(2) for captured taxes
levied by the municipality not including taxes attributable to
increased captured value.
(v) Subtract from the amount calculated under subparagraph (ii)
the amount calculated under subparagraph (iv).
(vi) Divide the result of the calculation in subparagraph (v)
by the sum of the calculation under subparagraph (v) for all
municipalities.
(vii) Multiply the result of the calculation in subparagraph
(vi) by the amount to be distributed under this subdivision.
(viii) For fiscal year 2020-2021, calendar year 2020, and each
fiscal
calendar year thereafter, the percentage amount described in
this subdivision shall be increased an additional 5% each year, not
to exceed 100%.
(c) After the distributions in subdivisions (a) and (b), the
authority
shall distribute the remaining balance of that fiscal
year's
the local community stabilization share fund for a calendar
year to each municipality in an amount determined by multiplying
the remaining balance by a fraction, the numerator of which is that
municipality's qualified loss and the denominator of which is the
total qualified loss.
(5) (4)
The authority shall make the payments required by
subsection (3) not later than October 20, 2015, and payments
required
by subsection (3) (4) not later than on the following
dates:
(a) For county allocated millage, September 20 of the year the
millage is levied.
(b) For county extra-voted millage, township millage, and
other millages levied 100% in December of a year, February 20 of
the following year.
(c) For other millages, October 20 of the year the millage is
levied.
(6) (5)
If the authority has insufficient
funds to make the
payments
on the dates required in subsection (4), (5), the
department shall advance to the authority the amount necessary for
the authority to make the required payments. The authority shall
repay the advance to the department from the local community
stabilization share.
(7) For each fiscal year from fiscal year 2015-2016 through
fiscal year 2018-2019, the authority may use up to $300,000.00 of
the local community stabilization share revenue for purposes
consistent with implementing and administering this act.
(8) The authority shall distribute local community
stabilization share revenue under this section as follows:
(a) From fiscal year 2015-2016 local community stabilization
share revenue, $19,200,000.00 for calendar years 2014 and 2015 and
$76,900,000.00 for calendar year 2016.
(b) From fiscal year 2016-2017 local community stabilization
share revenue, $297,400,000.00 for calendar year 2016 and
$83,200,000.00 for calendar year 2017.
(c) From fiscal year 2017-2018 local community stabilization
share revenue, $321,500,000.00 for calendar year 2017 and
$89,000,000.00 for calendar year 2018.
(d) From fiscal year 2018-2019 local community stabilization
share revenue, $341,800,000.00 for calendar year 2018 and
$95,900,000.00 for calendar year 2019.
(e) From fiscal year 2019-2020 local community stabilization
share revenue, $364,500,000.00 for calendar year 2019 and
$101,400,000.00 for calendar year 2020.
(f) From fiscal year 2020-2021 local community stabilization
share revenue, $383,500,000.00 for calendar year 2020 and
$108,000,000.00 for calendar year 2021.
(g) From fiscal year 2021-2022 local community stabilization
share revenue, $405,700,000.00 for calendar year 2021 and
$115,600,000.00 for calendar year 2022.
(h) From fiscal year 2022-2023 local community stabilization
share revenue, $428,300,000.00 for calendar year 2022 and
$119,700,000.00 for calendar year 2023.
(i) From fiscal year 2023-2024 local community stabilization
share revenue, $438,900,000.00 for calendar year 2023 and
$122,800,000.00 for calendar year 2024.
(j) From fiscal year 2024-2025 local community stabilization
share revenue, $445,800,000.00 for calendar year 2024 and
$124,000,000.00 for calendar year 2025.
(k) From fiscal year 2025-2026 local community stabilization
share revenue, $447,100,000.00 for calendar year 2025 and
$124,300,000.00 for calendar year 2026.
(l) From fiscal year 2026-2027 local community stabilization
share revenue, $447,700,000.00 for calendar year 2026 and
$124,500,000.00 for calendar year 2027.
(m) From fiscal year 2027-2028 local community stabilization
share revenue, $448,000,000.00 for calendar year 2027 and
$124,600,000.00 for calendar year 2028.
(n) From the local community stabilization share revenue for
fiscal year 2028-2029 and each fiscal year thereafter, the
authority shall increase the prior fiscal year's 2 distribution
amounts under this subsection by the personal property growth
factor, the first amount for the calendar year in which the fiscal
year begins and the second amount for the calendar year in which
the fiscal year ends. As used in this subdivision, "personal
property growth factor" means that term as defined in section 2c of
the use tax act, 1937 PA 94, MCL 205.92c.
Sec. 19. (1) A local unit of government may issue bonds or
other obligations in anticipation of the distribution of local
community stabilization share revenue under section
17(3)(a)(iv).17(4)(a)(iv).
(2) Bonds or other obligations issued under this section are
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(3) If authorized by a majority vote of the qualified electors
of the local unit of government, the local unit of government may,
at the time of issuance, pledge the full faith and credit of the
local unit of government for the payment of bonds or other
obligations issued under this section.
Sec. 20. From the amount of local community stabilization
share
revenue distributed under section 17(3)(a)(iv), 17(4)(a)(iv), a
municipality shall first replace the amount of ad valorem property
taxes used for the payment of principal and interest of essential
services obligations incurred before 2013 pledging the unlimited or
limited taxing power of the municipality that are lost from the
exemptions provided by sections 9m, 9n, and 9o of the general
property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o. A
municipality shall not receive distributions under section
17(3)(a)(iv) 17(4)(a)(iv) if it has increased a
millage rate without
voter approval in order to replace lost property taxes that would
otherwise
be reimbursed under section 17(3)(a)(iv) 17(4)(a)(iv) that
were repaying essential service obligations incurred before 2013
pledging the unlimited or limited taxing power of the municipality
and that were lost as a result of the exemptions provided by
sections 9m, 9n, and 9o of the general property tax act, 1893 PA
206, MCL 211.9m, 211.9n, and 211.9o.