November 9, 2016, Introduced by Senator KNOLLENBERG and referred to the Committee on Local Government.
A bill to amend 2014 PA 86, entitled
"Local community stabilization authority act,"
by amending sections 13 and 16a (MCL 123.1353 and 123.1356a),
section 13 as amended by 2015 PA 122.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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, 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, 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(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. However,
for purposes of the calculation under this subsection, if a
municipality restructured the funding of police services by
increasing the rate of millage levied for police services to offset
a corresponding decrease to nondedicated general operating millage
previously used to fund police services in the period between 2012
and the year immediately preceding the current year, the lowest
rate of that municipality's police services millage levied in the
period between 2012 and the year immediately preceding the current
year is the lowest millage rate levied for police services during
that period that reflects the restructuring. 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. 16a. (1) Not later than June 15, 2014 and June 15, 2015,
each municipality that is a tax increment finance authority shall
calculate and report to the department the municipality's tax
increment small taxpayer loss for the current calendar year.
(2) Not later than June 15, 2016, and each June 15 thereafter,
each municipality that is a tax increment finance authority shall
do all of the following for each of its tax increment financing
plans:
(a) Calculate the total captured value of all industrial
personal property and commercial personal property in the
municipality that is a tax increment finance authority in 2013 and
add any increased captured value for the current year.
(b) From the amount calculated in subdivision (a), subtract
the total captured value of all industrial personal property and
commercial personal property in the municipality that is a tax
increment finance authority in the current year. If the resulting
amount, when added to the taxable value of all property within the
tax increment finance authority in the current year, would result
in a captured value for all property within the tax increment
finance authority that is less than the resulting amount, then this
captured value shall be used instead of the resulting amount.
(c) Multiply the result of the calculation in subdivision (b)
by the sum of the lowest rate of each individual millage levied in
the period between 2012 and the year immediately preceding the
current year, to the extent the millage is subject to capture by
that tax increment finance authority. For purposes of the
calculation under this subdivision, the lowest rate of a millage
levied for police services in the period between 2012 and the year
immediately preceding the current year is subject to the adjustment
for restructured funding of police services described in section
13(5). 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 subdivision must be eligible to be levied
against both real property and personal property.
(d) Adjust the amount calculated under subdivision (c) 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 section.
(e) For an obligation refinanced after 2012, estimate for the
term of the obligation:
(i) The cumulative school district operating tax and state
education tax that would have been captured to repay the obligation
had the obligation not been refinanced.
(ii) The cumulative amount calculated under subdivision (c),
as adjusted by subdivision (d), for school district operating tax
and state education tax for the obligation had it not been
refinanced.
(f) Once the amount included in subdivision (c), as adjusted
by subdivision (d), for the current and prior years for school
operating tax and state education tax for the refinanced obligation
equals the amount estimated in subdivision (e)(ii), subtract from
the amount calculated under subdivision (c), as adjusted by
subdivision (d), the amount calculated under subdivision (c), as
adjusted by subdivision (d), for school district operating tax and
state education tax for the refinanced obligation.
(g) Once the amount of school district operating tax and state
education tax captured for the current and prior years to pay the
refinanced obligation equals the amount estimated under subdivision
(e)(i), subtract from the amount calculated in subdivision (c), as
adjusted by subdivision (d), the amount of school operating tax and
state education tax captured to repay the refinanced obligation.
(3) Not later than June 15, 2016, and each June 15 thereafter,
each municipality that is a tax increment finance authority shall
report to the department the results of the calculations under
subsection (2) for each tax increment financing plan.