Bill Text: MI SB0310 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Economic development; historic neighborhood tax increment financing authority; capture of certain mills for library purposes; modify. Amends secs. 2 & 17 of 2004 PA 530 (MCL 125.2842 & 125.2857).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-20 - Referred To Committee On Finance [SB0310 Detail]
Download: Michigan-2017-SB0310-Introduced.html
SENATE BILL No. 310
April 20, 2017, Introduced by Senators JONES, BRANDENBURG, ROBERTSON and MACGREGOR and referred to the Committee on Finance.
A bill to amend 2004 PA 530, entitled
"Historical neighborhood tax increment finance authority act,"
by amending sections 2 and 17 (MCL 125.2842 and 125.2857), section
17 as amended by 2016 PA 510.
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 historical neighborhood tax increment
finance authority created under this act.
(d) "Board" means the governing body of an authority.
(e) "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(d), exceeds the initial assessed value. The state tax commission
shall prescribe the method for calculating captured assessed value.
(f) "Chief executive officer" means the mayor or city manager
of a city or the supervisor of a township.
(g) "Development area" means that area described in section 5
to which a development plan is applicable that is located inside a
historic district.
(h) "Development plan" means that information and those
requirements for a development area set forth in section 22.
(i) "Development program" means the implementation of the
development plan.
(j) "Fiscal year" means the fiscal year of the authority.
(k) "Governing body" or "governing body of a municipality"
means the elected body of a municipality having legislative powers.
(l) "Historic district" means that term as defined in section
1a of the local historic districts act, 1970 PA 169, MCL 399.201a.
(m) "Housing" means privately owned housing or publicly owned
housing, individual or multifamily.
(n) "Initial assessed value" means the assessed value of all
the taxable property within the boundaries of the development area
at the time the ordinance establishing the tax increment financing
plan is approved, as shown by the most recent assessment roll of
the municipality at the time the resolution is adopted. Property
exempt from taxation at the time of the determination of the
initial assessed value shall be included as zero. For the purpose
of determining initial 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(d).
(o)
"Land use plan" means a plan prepared under section 1 of
the
city and village zoning act, former
1921 PA 207, MCL 125.581,
or a site plan under the Michigan zoning enabling act, 2006 PA 110,
MCL 125.3101 to 125.3702.
(p) "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.
(q) (p)
"Municipality" means a
city or township in which a
historic district is located.
(r) (q)
"Residential district"
means an area of a municipality
zoned and used principally for residential housing.
Sec. 17. (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 19, 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 18. 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 21.
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) Not more than 60 days after the public hearing, 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 a 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.
