Bill Text: MI HB4317 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Economic development; downtown development authorities; opt-out provision for tax capture; provide for. Amends sec. 3 of 1975 PA 197 (MCL 125.1653).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-02-24 - Printed Bill Filed 02/24/2011 [HB4317 Detail]
Download: Michigan-2011-HB4317-Introduced.html
HOUSE BILL No. 4317
February 23, 2011, Introduced by Reps. Callton and Poleski and referred to the Committee on Commerce.
A bill to amend 1975 PA 197, entitled
"An act to provide for the establishment of a downtown development
authority; to prescribe its powers and duties; to correct and
prevent deterioration in business districts; to encourage historic
preservation; to authorize the acquisition and disposal of
interests in real and personal property; to authorize the creation
and implementation of development plans in the districts; to
promote the economic growth of the districts; to create a board; to
prescribe its powers and duties; to authorize the levy and
collection of taxes; to authorize the issuance of bonds and other
evidences of indebtedness; to authorize the use of tax increment
financing; to reimburse downtown development authorities for
certain losses of tax increment revenues; and to prescribe the
powers and duties of certain state officials,"
by amending section 3 (MCL 125.1653), as amended by 2005 PA 115.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) When the governing body of a municipality
determines that it is necessary for the best interests of the
public to halt property value deterioration and increase property
tax valuation where possible in its business district, to eliminate
the causes of that deterioration, and to promote economic growth,
the governing body may, by resolution, declare its intention to
create and provide for the operation of an authority.
(2) In the resolution of intent, the governing body shall set
a date for the holding of a public hearing on the adoption of a
proposed ordinance creating the authority and designating the
boundaries of the downtown district. Notice of the public hearing
shall be published twice in a newspaper of general circulation in
the municipality, not less than 20 or more than 40 days before the
date of the hearing. Not less than 20 days before the hearing, the
governing body proposing to create the authority shall also mail
notice of the hearing to the property taxpayers of record in the
proposed district and for a public hearing to be held after
February 15, 1994 to the governing body of each taxing jurisdiction
levying taxes that would be subject to capture if the authority is
established and a tax increment financing plan is approved.
Beginning June 1, 2005, the notice of hearing within the time frame
described in this subsection shall be mailed by certified mail to
the governing body of each taxing jurisdiction levying taxes that
would be subject to capture if the authority is established and a
tax increment financing plan is approved. Failure of a property
taxpayer to receive the notice shall not invalidate these
proceedings. Notice of the hearing shall be posted in at least 20
conspicuous and public places in the proposed downtown district not
less than 20 days before the hearing. The notice shall state the
date, time, and place of the hearing, and shall describe the
boundaries of the proposed downtown district. A citizen, taxpayer,
or property owner of the municipality or an official from a taxing
jurisdiction with millage that would be subject to capture has the
right to be heard in regard to the establishment of the authority
and the boundaries of the proposed downtown district. The governing
body of the municipality shall not incorporate land into the
downtown district not included in the description contained in the
notice of public hearing, but it may eliminate described lands from
the downtown district in the final determination of the boundaries.
(3) Not more than 60 days after a public hearing held after
February 15, 1994, the governing body of a taxing jurisdiction
levying ad valorem property taxes that would otherwise be subject
to capture may exempt its taxes from capture by adopting a
resolution to that effect and filing a copy with the clerk of the
municipality
proposing to create the authority. The Beginning July
1, 2011, once bonds issued by an authority under this act are paid,
the governing body of a taxing jurisdiction levying ad valorem
property taxes that would otherwise be subject to capture may
exempt its taxes from capture by adopting a resolution to that
effect and filing a copy with the clerk of the municipality that
created the authority. A resolution described in this subsection
takes effect when filed with that clerk and remains effective until
a copy of a resolution rescinding that resolution is filed with
that clerk.
(4) Not less than 60 days after the public hearing, if the
governing body of the municipality intends to proceed with the
establishment of the authority, it shall adopt, by majority vote of
its members, an ordinance establishing the authority and
designating the boundaries of the downtown district within which
the authority shall exercise its powers. The adoption of the
ordinance is subject to any applicable statutory or charter
provisions in respect to the approval or disapproval by the chief
executive or other officer of the municipality and the adoption of
an ordinance over his or her veto. This ordinance shall be filed
with the secretary of state promptly after its adoption and shall
be published at least once in a newspaper of general circulation in
the municipality.
(5) The governing body of the municipality may alter or amend
the boundaries of the downtown district to include or exclude lands
from the downtown district pursuant to the same requirements for
adopting the ordinance creating the authority.
(6) A municipality that has created an authority may enter
into an agreement with an adjoining municipality that has created
an authority to jointly operate and administer those authorities
under an interlocal agreement under the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.
(7) A municipality that has created an authority may enter
into an agreement with a qualified township to operate its
authority in a downtown district in the qualified township under an
interlocal agreement under the urban cooperation act of 1967, 1967
(Ex Sess) PA 7, MCL 124.501 to 124.512. The interlocal agreement
between the municipality and the qualified township shall provide
for, but is not limited to, all of the following:
(a) Size and makeup of the board.
(b) Determination and modification of downtown district,
business district, and development area.
(c) Modification of development area and development plan.
(d) Issuance and repayment of obligations.
(e) Capture of taxes.
(f) Notice, hearing, and exemption of taxes from capture
provisions described in this section.
