POLICE & FIRE SPECIAL ASSESSMENTS                                                           S.B. 1235:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 1235 (as reported without amendment)

Sponsor:  Senator Peter MacGregor

Committee:  Finance

CONTENT

The bill would amend Public Act 33 of 1951 (which provides for police and fire protection for certain villages, townships, and cities) to do the following:

-- Allow a township board or township boards to defray money appropriated for the purchase of police or fire motor vehicles, apparatus, equipment, and housing by special assessment and issue bonds in anticipation of the collection of those special assessments.

-- Specify that a special assessment imposed under the Act would have to be levied on all properties within the special assessment district established under the Act other than properties exempt from the collection of taxes under the General Property Tax Act.

-- Require a special assessment levied on all of the lands and premises in a township to be levied on the taxable value of the property assessed after December 31, 2018.

-- Describe a special assessment proposal on either all lands and premises in a township or on some but not all lands and premises in a township.

-- Specify the information that would have to be included on the special assessment proposal.

-- Subject the special assessments that could be levied under the bill to existing provisions, such as requiring a township board or boards to estimate the cost and expenses of the police and fire motor vehicles, apparatus, equipment, and housing and police and fire protection, once a special assessment district is proposed.

The bill would take effect on January 1, 2019.

MCL 41.801                                                            Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would have no fiscal impact on the State and an indeterminate fiscal impact on affected townships. It is not possible to know whether the changes in the bill would make future requests for special assessments more or less likely to pass. If more special assessments were approved, the townships affected would have the opportunity to issue bonds for police and fire protection, which could allow for more immediate purchasing power. Conversely, if fewer special assessments were approved, the affected townships would not receive the additional purchasing power.

Date Completed: 12-6-18                                                     Fiscal Analyst:  Ryan Bergan

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.