Bill Text: MI HB5423 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property tax; local community stabilization share; reimbursement deadline; provide 1-time extention for Detroit public schools. Amends sec. 17 of 2014 PA 86 (MCL 123.1357).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-18 - Bill Electronically Reproduced 01/17/2018 [HB5423 Detail]
Download: Michigan-2017-HB5423-Introduced.html
HOUSE BILL No. 5423
January 17, 2018, Introduced by Rep. Howrylak and referred to the Committee on Appropriations.
A bill to amend 2014 PA 86, entitled
"Local community stabilization authority act,"
by amending section 17 (MCL 123.1357), as amended by 2017 PA 102.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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.
Notwithstanding any provision of this act to the contrary, for the
2017 calendar year only, if a municipality eligible for a
distribution under this subparagraph fails to submit necessary
documentation in time to receive that distribution from local
community stabilization share revenue allocated to calendar year
2017, that municipality may apply for and receive the full amount
of that distribution from local community stabilization share
revenue allocated to calendar year 2018 pursuant to procedures
established by the authority.
(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 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.
(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 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) The authority shall make the payments required by
subsection (3) not later than May 20, 2016, and, subject to
subsection (4)(a)(i), payments required by subsection (4) not later
than on the following dates:
(a) For county allocated millage, November 20, 2017, and
thereafter 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, November 20, 2017, and thereafter
October 20 of the year the millage is levied.
(6) If the authority has insufficient funds to make the
payments on the dates required in subsection (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.
