Bill Text: MI HB5972 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Economic development: tax increment financing; recodified tax increment financing act; modify definition of water resource improvement district. Amends secs. 703 & 705 of 2018 PA 57 (MCL 125.4703 & 125.4705).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-04-12 - Bill Electronically Reproduced 03/24/2022 [HB5972 Detail]
Download: Michigan-2021-HB5972-Introduced.html
HOUSE BILL NO. 5972
A bill to amend 2018 PA 57, entitled
"Recodified tax increment financing act,"
by amending sections 703 and 705 (MCL 125.4703 and 125.4705).
the people of the state of michigan enact:
Sec. 703. As used in this part:
(a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities.
(b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes.
(c) "Public facility" means a street, and any improvements to a street, including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, or building, including access routes designed and dedicated to use by the public generally, or used by a public agency, that is related to access to inland lakes or a water resource improvement, or means a water resource improvement. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.
(d) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax.
(e) "State fiscal year" means the annual period commencing October 1 of each year.
(f) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Tax increment revenues do not include any of the following:
(i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906.
(ii) Taxes levied by local or intermediate school districts.
(iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes.
(iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes.
(v) Ad valorem property taxes exempted from capture under section 815(5) 715(5) or specific local taxes attributable to the ad valorem property taxes.
(vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes.
(vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes:
(A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183.
(B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229.
(C) Except as otherwise provided in section 715(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016.
(g) "Water resource improvement" means enhancement of water quality and water dependent natural resources, including, but not limited to, the following:
(i) The elimination of the causes and the proliferation of aquatic nuisance species, as defined in section 3101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.3101.
(ii) Sewer systems that service existing structures that have failing on-site disposal systems.
(iii) Storm water systems that service existing infrastructure.
(iv) Dredging, removal of spoils, or other improvements or maintenance activities that enhance navigability of a waterway.
(h) "Water resource improvement district" or "district" means 1 or more of the following:
(i) An inland body of water and land that is up to 1 mile from the shoreline of an inland lake that contains 1 or more public access points.
(ii) An inland body of water and parcels of land that are contiguous to the shoreline of an inland lake that does not contain a public access point.
(iii) The shoreline of a harbor on a Great Lake and 1 or more of the following:
(A) Land up to 1 mile from the shoreline of the harbor.
(B) A tributary to that Great Lake harbor up to 5 miles upstream from the shoreline of the Great Lake harbor.
(C) Land up to 1 mile from each bank of the tributary described in sub-subparagraph (B).
(iv) A water trail and land up to 1 mile from the bank or shoreline of the water trail.
(i) "Water trail" means an inland river and associated bodies of water designated as 1 or more of the following:
(A) A "State Water Trail" by the department of natural resources pursuant to the state water trail designation program established by the department of natural resources under its authority under section 502 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.502.
(B) A "National Water Trail" by the United States National Park Service under the national trails system act, 16 USC chapter 27, and United States Secretary of the Interior Order No. 3319.
Sec. 705. (1) If the governing body of a municipality determines that it is necessary for the best interests of the public to promote water resource improvement or access to inland lakes or water trails, or both, in a water resource improvement district, the governing body may, by resolution, declare its intention to create and provide for the operation of an authority within the boundaries of a water resource improvement district.
(2) In the resolution of intent, the governing body shall set a date for a public hearing on the adoption of a proposed ordinance creating the authority and designating the boundaries of the development area. Notice of the public hearing shall must 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 development area and 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 does not invalidate these proceedings. Notice of the hearing shall must be posted in at least not less than 20 conspicuous and public places in the proposed development area not less than 20 days before the hearing. The notice shall must state the date, time, and place of the hearing and shall must describe the boundaries of the proposed development area. 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 development area. The governing body of the municipality shall not incorporate land into the development area not included in the description contained in the notice of public hearing, but it may eliminate described lands from the development area in the final determination of the boundaries.
(3) 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 development area 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 must be filed with the secretary of state promptly after its adoption and shall must be published at least once in a newspaper of general circulation in the municipality.
(4) The governing body of the municipality may alter or amend the boundaries of the development area to include or exclude lands from the development area in the same manner as adopting the ordinance creating the authority.
(5) 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.
