Bill Text: MI HB5583 | 2021-2022 | 101st Legislature | Introduced


Bill Title: Property tax: millage; matching state grant program for certain local millages; create. Creates new act. TIE BAR WITH: HB 5584'21

Spectrum: Strong Partisan Bill (Democrat 36-2)

Status: (Introduced) 2021-12-01 - Bill Electronically Reproduced 11/30/2021 [HB5583 Detail]

Download: Michigan-2021-HB5583-Introduced.html

 

 

 

 

 

 

 

 

 

 

HOUSE BILL NO. 5583

November 30, 2021, Introduced by Reps. Brixie, O'Neal, Aiyash, Young, Hertel, Scott, Hope, Kuppa, Sowerby, Hood, Brenda Carter, Camilleri, Morse, Ellison, Cynthia Johnson, Hammoud, Bolden, Sneller, Garza, Steenland, Breen, Brabec, Coleman, Rabhi, Rogers, Liberati, Stone, LaGrand, Thanedar, Steckloff, Neeley, Puri, Cavanagh, Clemente, Weiss, Brann, Howell and Yancey and referred to the Committee on Local Government and Municipal Finance.

A bill to establish a state matching grant program for certain property taxes and special assessments levied by certain municipalities and school districts; to authorize the levy of a special millage by certain municipalities; and to provide for the powers and duties of certain state and local governmental officers and entities.

the people of the state of michigan enact:

Sec. 1. This act may be cited as the "raise up local grant act".

Sec. 3. As used in this act:

(a) "Department" means the department of treasury.

(b) "Eligible municipality" means a county, city, township, or village with a per capita taxable value that is less than the statewide average per capita taxable value.

(c) "Eligible school district" means a school district with a per capita taxable value that is less than the statewide average per capita taxable value.

(d) "Municipality" means a county, city, township, or village.

(e) "Per capita taxable value" means an amount determined by dividing the total taxable value of all property subject to general ad valorem property taxes in a municipality or school district by the population of the municipality or school district as determined by the department using the most recent population data available from the United States Census Bureau.

(f) "School district" means that term as defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6.

(g) "Special millage" means a millage levied by an eligible municipality under section 7 dedicated to 1 or more of the following purposes:

(i) Funding the construction, maintenance, or repair of roads and bridges.

(ii) Funding the construction, maintenance, or repair of water and sewer systems.

(iii) Funding police, fire, or emergency medical services.

(iv) Payment of unfunded actuarial accrued liability for retiree health care and unfunded actuarial accrued liability for pension and retirement benefits for former employees of the eligible municipality.

(v) Funding parks and recreation facilities or services.

(h) "Statewide average per capita taxable value" means an amount determined by dividing the total taxable value of all property subject to general ad valorem property taxes in this state by the population of this state as determined by the department using the most recent population data available from the United States Census Bureau.

(i) "Taxable value" means the value determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.

Sec. 5. Subject to section 9, the department shall establish and administer a raise up local grant program to provide matching grants from this state to both of the following:

(a) Eligible municipalities that levy special millages under section 7 or special assessments under 1951 PA 33, MCL 41.801 to 41.813, or both.

(b) Eligible school districts that levy property taxes for 1 or both of the following purposes:

(i) To create a sinking fund under section 1212 of the revised school code, 1976 PA 451, MCL 380.1212.

(ii) For payment of bonds issued under section 1351a of the revised school code, 1976 PA 451, MCL 380.1351a.

Sec. 7. After December 31, 2021, the governing body of an eligible municipality may levy for the purposes specified in section 3(g)(i) to (v) 1 or more millages, not to exceed a total of 2 millages, authorized by the qualified electors of the eligible municipality. Revenues raised by any levy under this section must be used solely for 1 or more of the purposes described in section 3(g)(i) to (v).

Sec. 9. An eligible municipality that levies 1 or more special millages under section 7 or a special assessment under 1951 PA 33, MCL 41.801 to 41.813, or both, or an eligible school district that levies property taxes for 1 or both of the purposes described in section 5(b), may apply for a matching grant from this state, subject to all of the following:

(a) The eligible municipality or eligible school district shall apply for the matching grant in a form and manner prescribed by the department not later than December 31 of the calendar year immediately preceding the calendar year in which the eligible municipality or eligible school district will levy any special millage, special assessment, or property taxes described in section 5(b) for which a matching grant is sought.

(b) The department shall maintain a database available to municipalities and school districts, updated annually by not later than March 31, containing all of the following:

(i) The per capita taxable value for every municipality and school district in this state and the underlying taxable value and population data used to calculate each municipality's and school district's per capita taxable value.

(ii) The statewide average per capita taxable value and the underlying taxable value and population data used to calculate that statewide average per capita taxable value.

(iii) A list of all municipalities and school districts that qualify as eligible municipalities and eligible school districts for purposes of participating in the raise up local grant program in the immediately succeeding calendar year.

(c) The department shall determine whether a municipality or school district that applies for a matching grant is an eligible municipality or eligible school district based on the data described in subdivision (b)(i) and (ii) for the calendar year in which the municipality or school district applies for a matching grant.

(d) A matching grant awarded under this act is subject to appropriation and must not exceed an amount equal to 2 mills applied to the total taxable value of all property subject to general ad valorem property taxes in the eligible municipality or eligible school district.

(e) An eligible municipality or eligible school district that receives a matching grant under this act shall dedicate that grant money to the same purpose or purposes served by the local revenue-raising measure or measures that qualified the eligible municipality or eligible school district for the matching grant under section 5(a) or (b), as applicable, and the amount of grant money dedicated to any given purpose must not exceed the amount raised by the local revenue-raising measure for that purpose.

(f) Subject to appropriation, the department shall distribute matching grants not later than July 1 of each year for which 1 or more applications are granted from the raise up local grant fund, as provided in the raise up local grant fund act.

Enacting section 1. This act does not take effect unless Senate Bill No.____ or House Bill No. 5584 (request no. 04287'21) of the 101st Legislature is enacted into law.

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