Bill Text: MI SB0380 | 2017-2018 | 99th Legislature | Chaptered
Bill Title: Property tax; local community stabilization share; distribution of local community stabilization share; modify dates. Amends secs. 14, 15, 16 & 17 of 2014 PA 86 (MCL 123.1354 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-09-06 - Assigned Pa 0102'17 With Immediate Effect [SB0380 Detail]
Download: Michigan-2017-SB0380-Chaptered.html
Act No. 102
Public Acts of 2017
Approved by the Governor
July 13, 2017
Filed with the Secretary of State
July 13, 2017
EFFECTIVE DATE: July 13, 2017
STATE OF MICHIGAN
99TH LEGISLATURE
REGULAR SESSION OF 2017
Introduced by Senator Hildenbrand
ENROLLED SENATE BILL No. 380
AN ACT to amend 2014 PA 86, entitled “An act to create a metropolitan authority; to prescribe the powers, duties, and jurisdictions of the metropolitan authority; to prescribe the powers and duties of certain state officials; to levy, collect, and distribute a tax; and to repeal acts and parts of acts,” by amending sections 14, 15, 16, and 17 (MCL 123.1354, 123.1355, 123.1356, and 123.1357), sections 14 and 17 as amended by 2016 PA 124.
The People of the State of Michigan enact:
Sec. 14. (1) Not later than November 7, 2017, and each September 7 thereafter, for each municipality that is not a local school district, intermediate school district, or tax increment finance authority, the department shall do all of the following:
(a) Calculate the municipality’s personal property exemption loss.
(b) Multiply the municipality’s personal property exemption loss by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the amount required to reflect the final order of a court or body of competent jurisdiction related to any prior year calculation under this subsection. An adjustment under this subdivision shall only be made for municipalities for which changes in prior year taxable values can be calculated from taxable values reported under section 151(1) of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.
(d) Adjust the amount calculated under subdivision (b), as adjusted by subdivision (c), by the amount calculated under section 16a(2) for captured taxes levied by the municipality not including taxes attributable to increased captured value.
(2) Not later than November 7, 2017, and each September 7 thereafter, for each municipality that is a county, township, village, city, or authority that provides essential services, the department shall do all of the following:
(a) Add to the amount calculated under subsection (1)(a) any increased value from expired tax exemptions for the current year.
(b) Subtract from the amount calculated under subdivision (a) the amount calculated under section 16a(2)(b) for the municipality, not including any amount attributable to increased captured value.
(c) Multiply the result of the calculation in subdivision (b) by the millage rate calculated under section 13(5) for general operating millage.
(d) Multiply the result of the calculation in subdivision (c) by the percentage of the municipality’s general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012. The department shall calculate each municipality’s percentage of general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012, unless the municipality includes the calculation in its comprehensive annual financial report for the municipality’s fiscal year ending in either 2014 or 2015 or otherwise reports the calculation to the department in a form and in a manner prescribed by the department.
(e) Add to the result of the calculation in subdivision (d) an amount calculated by multiplying the amount calculated under subdivision (b) by the millage rates calculated under section 13(5) that are dedicated solely for the cost of essential services levied on industrial personal property and commercial personal property. A millage levied to fund a pension under the fire fighters and police officers retirement act, 1937 PA 345, MCL 38.551 to 38.562, is dedicated solely for the cost of essential services.
(3) Not later than May 10, 2016, for each municipality that is a city, the department shall do all of the following:
(a) Calculate the municipality’s 2014 and 2015 small taxpayer exemption loss.
(b) Multiply the 2014 small taxpayer exemption loss if greater than zero by the millage rates calculated under section 13(5) for 2014, excluding debt millage.
(c) Multiply the 2015 small taxpayer exemption loss if greater than zero by the millage rates calculated under section 13(5) for 2015, excluding debt millage.
(d) Add the amounts calculated under subdivisions (b) and (c).
(e) Calculate the sum of the municipality’s debt loss for 2014 and 2015 reimbursed under section 17(1)(a) for millages used to calculate the amounts under subdivisions (b) and (c).
(f) Calculate the amount of any tax increment small taxpayer loss for captured taxes levied by the municipality in 2014 and 2015 for millages used to calculate the amounts under subdivisions (b) and (c).
(4) Not later than November 7, 2017, and each September 7 thereafter, for each municipality that is not a local school district, intermediate school district, or tax increment finance authority, the department shall do all of the following:
(a) Calculate the municipality’s 2015 small taxpayer exemption loss.
(b) Multiply the municipality’s 2015 small taxpayer exemption loss by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the amount required to reflect the final order of a court or body of competent jurisdiction related to any prior year calculation under this subsection. An adjustment under this subdivision shall only be made for municipalities for which changes in prior year taxable values can be calculated from taxable values reported under section 151(1) of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.
(d) Adjust the amount calculated under subdivision (b), as adjusted by subdivision (c), by the amount calculated under section 16a(2) for captured taxes levied by the municipality not including taxes attributable to increased captured value. The adjustment under this subdivision shall only be made to the extent that the adjustment made under subsection (1)(d) did not fully account for all captured taxes levied by the municipality not including taxes attributable to increased captured value.
Sec. 15. Not later than November 7, 2017, and each August 15 thereafter, for each municipality that is a local school district, the department shall do all of the following:
(a) Calculate the municipality’s personal property exemption loss.
(b) Multiply the result of the calculation in subdivision (a) by the sum of the lowest rate of each individual millage levied under section 1212 of the revised school code, 1976 PA 451, MCL 380.1212, and section 2 of 1917 PA 156, MCL 123.52, levied by that municipality in the period between 2012 and the year immediately preceding the current year. For an individual millage rate not levied in 1 of the years, the lowest millage rate is zero.
(c) Adjust the amount calculated under subdivision (b) by the amount required to reflect the final order of a court or body of competent jurisdiction related to any prior year calculation under this section.
(d) Subtract from the result of the calculation in subdivision (b), as adjusted by subdivision (c), the amount calculated under section 16a(2) for captured taxes levied by the municipality under section 1212 of the revised school code, 1976 PA 451, MCL 380.1212, and section 2 of 1917 PA 156, MCL 123.52, not including taxes attributable to increased captured value.
Sec. 16. Not later than November 7, 2017, and each August 15 thereafter, for each municipality that is an intermediate school district, the department shall do all of the following:
(a) Calculate the municipality’s personal property exemption loss.
(b) Multiply the result of the calculation in subdivision (a) by the millage rates calculated under section 13(5).
(c) Adjust the amount calculated under subdivision (b) by the amount required to reflect the final order of a court or body of competent jurisdiction related to any prior year calculation under this section.
(d) Subtract from the result of the calculation in subdivision (b), as adjusted by subdivision (c), the amount calculated under section 16a(2) for captured taxes levied by that municipality not including taxes attributable to increased captured value.
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.
(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 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.
This act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved
Governor
