Bill Text: MI HB5086 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property tax; personal property; distribution of local community stabilization act share revenues; modify. Amends secs. 5, 13, 14, 15, 16, 16a, 17, 18 & 21 of 2014 PA 86 (MCL 123.1345 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-08-15 - Assigned Pa 247'18 With Immediate Effect [HB5086 Detail]
Download: Michigan-2017-HB5086-Introduced.html
HOUSE BILL No. 5086
October 11, 2017, Introduced by Rep. Maturen 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, 15, 16, 16a, 17, and 21 (MCL
123.1345, 123.1353, 123.1354, 123.1355, 123.1356, 123.1356a,
123.1357, and 123.1361), sections 5 and 13 as amended by 2015 PA
122, sections 14, 15, 16, and 17 as amended by 2017 PA 102, and
section 21 as amended by 2016 PA 124.
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,
125.2670, 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, 125.2670, 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 authority" means any authority, excluding an
authority created under this act or a tax increment finance
authority.
(r) (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.
(s) (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.Local authorities.
(vi) Local school districts.
(vii) Intermediate school districts.
(viii) Community college districts.
(ix) Libraries.
(x) Other local and intergovernmental taxing units.
(t) (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 if, for years after
2017, the small taxpayer exemption loss is greater than zero. The
calculation under this subparagraph must be modified for
municipality boundary changes to the extent that the boundary
changes affect the property taxes levied by the municipality. For
millages from which renaissance zone property is exempt, the
calculation under this subparagraph must be adjusted to exclude the
taxable value of commercial personal property and industrial
personal property exempt under the Michigan renaissance zone act,
1996 PA 376, MCL 125.2681 to 125.2696.
(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.
The calculation under this subparagraph must be modified for
municipality boundary changes to the extent that the boundary
changes affect the property taxes levied by the municipality. For
millages from which renaissance zone property is exempt, the
calculation under this subparagraph must be adjusted to exclude the
taxable value of commercial personal property and industrial
personal property exempt under the Michigan renaissance zone act,
1996 PA 376, MCL 125.2681 to 125.2696.
(u) (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.
(v) (u)
"Qualified loss" means
the amounts calculated under
section 14(1) that are not distributed to the municipality under
section 17(4)(a).
(w) (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.
(x) (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.
(y) (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.
(z) (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. The calculation under this
subparagraph must be modified for municipality boundary changes to
the extent that the boundary changes affect the property taxes
levied by the municipality. For millages from which renaissance
zone property is exempt, the calculation under this subparagraph
must be adjusted to exclude the taxable value of commercial
personal property and industrial personal property exempt under the
Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696.
(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. The calculation
under this subparagraph must be modified for municipality boundary
changes to the extent that the boundary changes affect the property
taxes levied by the municipality. For millages from which
renaissance zone property is exempt, the calculation under this
subparagraph must be adjusted to exclude the taxable value of
commercial personal property and industrial personal property
exempt under the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681 to 125.2696.
(aa) (z)
"Specific tax" means a
tax levied under 1974 PA 198,
MCL 207.551 to 207.572.
(bb) (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 125.2672.125.2670.
(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.
(cc) (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.
(dd) (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.
(ee) (dd)
"Total qualified loss"
means the total amount of
qualified losses of all municipalities, as determined by the
department.
(ff) (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, 2015, June 5, 2016, June 5, 2017,
and
each June 5 May 15 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, June 20, 2016, June 20,
2017,
and each June 20 May 31 thereafter,
the equalization director
for each county shall report to the department the 2013 and current
year taxable value of commercial personal property and industrial
personal
property for each municipality in the county. For Not
later than June 20, 2015, June 20, 2016, June 20, 2017, and each
June 7 thereafter, 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
and
report to the department the
municipality's information
described
in this subsection.2013 and
current year taxable value of
commercial personal property and industrial personal property.
(4) Not later than August 15, 2014, August 15, 2015, August
15,
2016, and each August 15 1 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) (x) 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 For the 2016 and 2017 calendar
years' calculations,
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 the
calendar year 2018 and subsequent years' calculations, 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 2014 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, June
5, 2017, and each June 5
May 31 thereafter, the assessor for each city and township shall
report to the department and 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 November 7, 2017, and each
September
October 7 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 Subtract from 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 November 7, 2017, and each September
October 7 thereafter, for each municipality that is a county,
township, village, city, or local 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. 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 or 2015 or otherwise reports the
calculation
to the department in a form and in a manner prescribed
by
the department.
(b) Multiply the millage rate calculated under section 13(5)
for general operating millage 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. 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 or 2015 or otherwise reports the calculation to the
department in a form and in a manner prescribed by the department.
(c) Multiply the result of the calculation in subdivision (a)
by the result of the calculation in subdivision (b).
(d) Multiply the amount calculated under section 16a(2) for
captured taxes from the general operating millage levied by the
municipality not including taxes attributable to increased captured
value 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 and subtract the
resulting adjustment from the amount calculated under subdivision
(c).
(e) Add to the result of the calculation in subdivision (d) an
amount calculated by multiplying the amount calculated under
subdivision
(b) (a) by the portion
of 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.
(f) Subtract from the result of the calculation in subdivision
(e) the amount calculated under section 16a(2) for captured taxes
from the millage dedicated for the cost of essential services
levied by the municipality not including taxes attributable to
increased captured value.
(3)
Not later than May 10, 24,
2016, for each municipality
that is a city, the department shall do all of the following:
(a) Calculate the municipality's 2014 and 2015 small taxpayer
exemption loss.
(b) Multiply the 2014 small taxpayer exemption loss if greater
than zero by the millage rates calculated under section 13(5) for
2014, excluding debt millage.
(c) Multiply the 2015 small taxpayer exemption loss if greater
than zero by the millage rates calculated under section 13(5) for
2015, excluding debt millage.
(d) Add the amounts calculated under subdivisions (b) and (c).
(e) Calculate the sum of the municipality's debt loss for 2014
and 2015 reimbursed under section 17(1)(a) for millages used to
calculate the amounts under subdivisions (b) and (c).
(f) Calculate the amount of any tax increment small taxpayer
loss for captured taxes levied by the municipality in 2014 and 2015
for millages used to calculate the amounts under subdivisions (b)
and (c).
(4)
Not later than November 7, 2017, and each September
October 7 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 2015 small taxpayer exemption
loss.
(b) Multiply the municipality's 2015 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 Subtract from 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.
15. Not later than November 7, 2017, and each August 15
October 7 thereafter, for each municipality that is a local school
district, the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the result of the calculation in subdivision (a)
by
the sum of the lowest rate of each individual millage levied
under section 1212 of the revised school code, 1976 PA 451, MCL
380.1212,
and section 2 of 1917 PA 156, MCL 123.52, levied by that
municipality
in the period between 2012 and the year immediately
preceding
the current year. For an individual millage rate not
levied
in 1 of the years, the lowest millage rate is zero.as
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 section.
(d) Subtract from the result of the calculation in subdivision
(b), as adjusted by subdivision (c), the amount calculated under
section 16a(2) for captured taxes levied by the municipality under
section 1212 of the revised school code, 1976 PA 451, MCL 380.1212,
and section 2 of 1917 PA 156, MCL 123.52, not including taxes
attributable to increased captured value.
Sec.
16. Not later than November 7, 2017, and each August 15
October 7 thereafter, for each municipality that is an intermediate
school district, the department shall do all of the following:
(a) Calculate the municipality's personal property exemption
loss.
(b) Multiply the result of the calculation in subdivision (a)
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 section.
(d) Subtract from the result of the calculation in subdivision
(b), as adjusted by subdivision (c), the amount calculated under
section 16a(2) for captured taxes levied by that municipality not
including taxes attributable to increased captured value.
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, rate calculated under
section 13(5), to the extent
the millage is subject to capture by that tax increment finance
authority.
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.
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. Funds appropriated under this
subdivision for fiscal year 2015-2016 may be used to pay a
corrected tax increment small taxpayer exemption loss for 2014 if a
tax increment finance authority submits before June 1, 2016 a
correction to a report that was filed under section 16a before
October 1, 2014.
(b) For fiscal year 2014-2015 through fiscal year 2018-2019 an
amount equal to the necessary expenses incurred by 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 sum of the local
community stabilization share revenue for the calendar years and
the amounts calculated under section 14(3)(e) and (f) by a
fraction, the numerator of which is that city's amount calculated
under section 14(3)(d) and the denominator of which is the total
amount calculated under section 14(3)(d), and subtracting from the
result each city's amounts calculated under section 14(3)(e) and
(f).
(4) Beginning 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 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 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 as
calculated under section
13(5) that is not used to calculate a distribution under
subdivision
(a)(i) to (iv). 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.For millages from which renaissance zone
property is
exempt, the calculation under this subparagraph must be adjusted to
exclude the acquisition cost of eligible personal property exempt
under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681
to 125.2696.
(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 difference between the amount calculated under section
16a(2) for captured taxes for each individual millage levied by the
municipality not including taxes attributable to increased captured
value and the adjustments calculated under section 14(2)(d),
(2)(f), and (4)(d) for the municipality.
(v) Subtract from the amount calculated under subparagraph
(ii) the amount calculated under subparagraph (iv) for the
individual millage levied.
(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 calendar year 2020, and each 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 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) For payments received beginning October 20, 2018, a
municipality shall allocate payments received, up to 100%
reimbursement, under this section based on the portion of the
municipality's payment attributable to each millage levied by the
municipality. The portion of the payment allocated to each millage
other than the general operating millage shall be considered
restricted and recorded by the municipality in the same manner as
the millage levied. Payments under this section for millage levied
by a county under section 20b of 1909 PA 283, MCL 224.20b, shall be
allocated in the same manner as the millage levied under section
20b of 1909 PA 283, MCL 224.20b. As used in this subsection, "100%
reimbursement" means the amounts received under subsection (4)(b)
and (c), not to exceed the municipality's qualified loss, and
amounts received under subsection (4)(a).
(6) (5)
The authority shall make the
payments required by
subsection
(3) not later than May June
20, 2016, and payments
required by subsection (4) not later than on the following dates:
(a) For county allocated millage, November 20, 2017, and
thereafter
September October 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, November 20, 2017, and thereafter
October 20 of the year the millage is levied.
(7) (6)
If the authority has insufficient
funds to make the
payments
on the dates required in subsection (5), (6), 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.
(8) (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.
(9) (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. 21. (1) If a municipality does not adjust its debt
millage rate to reflect reimbursement for the small taxpayer
exemption loss under section 17(1)(a), the reimbursement under
section 17(1)(a) shall be reduced by the excess debt taxes levied.
(2) A municipality shall use the amount received under section
17(4) for debt millage to pay debt. If a payment under section
17(4) for debt millage is not used to pay debt, the amount not used
to pay debt shall be deducted from a subsequent payment under
section 17(4), unless all debts have been repaid, in which case the
amount received under section 17(4) for debt millage may be used by
the municipality in any manner and shall not be deducted from a
subsequent payment under section 17(4).
