Bill Text: MI SB0307 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Economic development; corridor improvement; capture of certain mills for library purposes; modify. Amends secs. 2 & 18 of 2005 PA 280 (MCL 125.2872 & 125.2888).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-20 - Referred To Committee On Finance [SB0307 Detail]
Download: Michigan-2017-SB0307-Introduced.html
SENATE BILL No. 307
April 20, 2017, Introduced by Senators MACGREGOR, BRANDENBURG, ROBERTSON and JONES and referred to the Committee on Finance.
A bill to amend 2005 PA 280, entitled
"Corridor improvement authority act,"
by amending sections 2 and 18 (MCL 125.2872 and 125.2888), section
2 as amended by 2013 PA 232 and section 18 as amended by 2016 PA
507.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Advance" means a transfer of funds made by a municipality
to an authority or to another person on behalf of the authority in
anticipation of repayment by the authority. Evidence of the intent
to repay an advance may include, but is not limited to, an executed
agreement to repay, provisions contained in a tax increment
financing plan approved prior to the advance, or a resolution of
the authority or the municipality.
(b) "Assessed value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(c) "Authority" means a corridor improvement authority created
under section 4(1) or a joint authority created under section 4(2).
(d) "Board" means the governing body of an authority.
(e) "Business district" means an area of a municipality zoned
and used principally for business.
(f) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the development area,
including the assessed value of property for which specific local
taxes are paid in lieu of property taxes as determined in section
3(e), exceeds the initial assessed value. The state tax commission
shall prescribe the method for calculating captured assessed value.
(g) "Chief executive officer" means the mayor of a city, the
president of a village, or the supervisor of a township.
(h) "Development area" means that area described in section 5
to which a development plan is applicable.
(i) "Development plan" means that information and those
requirements for a development area set forth in section 21.
(j) "Development program" means the implementation of the
development plan.
(k) "Fiscal year" means the fiscal year of the authority.
(l) "Governing body" or "governing body of a municipality"
means the elected body of a municipality having legislative powers
or, for a joint authority created under section 4(2), the elected
body of each municipality having legislative powers that is a
member of the joint authority.
(m) "Initial assessed value" means the assessed value, as
equalized, of all the taxable property within the boundaries of the
development area at the time the resolution establishing or
amending the tax increment financing plan is approved, as shown by
the most recent assessment roll of the municipality for which
equalization has been completed at the time the resolution is
adopted. The initial assessed value may be modified once during the
term of the tax increment financing plan through an amendment as
provided in section 18(4) after the tax increment financing plan
fails to generate captured assessed value for 3 consecutive years
due to declines in assessed value. Property exempt from taxation at
the time of the determination of the initial or amended assessed
value shall be included as zero. For the purpose of determining
initial or amended assessed value, property for which a specific
local tax is paid in lieu of a property tax shall not be considered
to be property that is exempt from taxation. The initial assessed
value of property for which a specific local tax was paid in lieu
of a property tax shall be determined as provided in section 3(e).
(n) "Library capture obligation" means a bond, note, or
similar instrument evidencing debt for borrowed money issued by the
authority before January 1, 2017, which pledges payment of the debt
by the authority from an identified source of revenue.
(o) (n)
"Land use plan" means a
plan prepared under former
1921 PA 207, former 1943 PA 184, or a site plan under the Michigan
zoning enabling act, 2006 PA 110, MCL 125.3101 to 125.3702.
(p) (o)
"Municipality" means 1 of
the following:
(i) A city.
(ii) A village.
(iii) A township.
(iv) A combination of 2 or more cities, villages, or townships
acting jointly under a joint authority created under section 4(2).
Sec. 18. (1) If the authority determines that it is necessary
for the achievement of the purposes of this act, the authority
shall prepare and submit a tax increment financing plan to the
governing body of the municipality. The plan shall include a
development plan as provided in section 21, a detailed explanation
of the tax increment procedure, the maximum amount of bonded
indebtedness to be incurred, and the duration of the program, and
shall be in compliance with section 19. The plan shall contain a
statement of the estimated impact of tax increment financing on the
assessed values of all taxing jurisdictions in which the
development area is located. The plan may provide for the use of
part or all of the captured assessed value, but the portion
intended to be used by the authority shall be clearly stated in the
tax increment financing plan. The authority or municipality may
exclude from captured assessed value growth in property value
resulting solely from inflation. The plan shall set forth the
method for excluding growth in property value resulting solely from
inflation.
(2) Approval of the tax increment financing plan shall comply
with the notice, hearing, and disclosure provisions of section 22.
If the development plan is part of the tax increment financing
plan, only 1 hearing and approval procedure is required for the 2
plans together.
(3) Before the public hearing on the tax increment financing
plan, the governing body shall provide a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to meet
with the governing body. The authority shall fully inform the
taxing jurisdictions of the fiscal and economic implications of the
proposed development area. The taxing jurisdictions may present
their recommendations at the public hearing on the tax increment
financing plan. The authority may enter into agreements with the
taxing jurisdictions and the governing body of the municipality in
which the development area is located to share a portion of the
captured assessed value of the development area.
(4) A tax increment financing plan may be modified if the
modification is approved by the governing body upon notice and
after public hearings and agreements as are required for approval
of the original plan.
(5) Except for a development area located in a qualified
development area, not more than 60 days after the public hearing on
the tax increment financing plan, the governing body in 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 resolution
shall take effect when filed with the clerk and remains effective
until a copy of a resolution rescinding that resolution is filed
with that clerk. If a separate millage for public library purposes
was
levied in effect or approved
by electors before January 1,
2017, and all library capture obligations of the authority are
paid, then the levy is exempt from capture under this act, unless
the library board or commission allows all or a portion of its
taxes levied to be included as tax increment revenues and subject
to capture under this act under the terms of a written agreement
between the library board or commission and the authority. The
written agreement shall be filed with the clerk of the
municipality. However, if a separate millage for public library
purposes
was levied in effect or
approved by electors before
January 1, 2017, and the authority alters or amends the boundaries
of the development area, adopts a new development plan or finance
plan, or extends the duration of, or otherwise modifies or amends,
the existing development plan or finance plan, then the library
board or commission may, not later than 60 days after a public
hearing
required for that action is held under this subsection,
act, exempt all or a portion of 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. For 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, a
library board or commission may allow all or a portion of its taxes
levied to be included as tax increment revenues and subject to
capture under this act under the terms of a written agreement
between the library board or commission and the authority. The
written agreement shall be filed with the clerk of the
municipality. However, if the library was created under section 1
or 10a of 1877 PA 164, MCL 397.201 and 397.210a, or established
under 1869 LA 233, then any action of the library board or
commission under this subsection shall have the concurrence of the
chief executive officer of the city that created the library to be
effective.