Bill Text: MI SB0621 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Economic development; corridor improvement; tax capture districts; provide opt-in and opt-out provisions for certain entities. Amends secs. 3 & 18 of 2005 PA 280 (MCL 125.2873 & 125.2888).
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2016-12-30 - Assigned Pa 0507'16 With Immediate Effect [SB0621 Detail]
Download: Michigan-2015-SB0621-Engrossed.html
SB-0621, As Passed House, December 14, 2016
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 621
A bill to amend 2005 PA 280, entitled
"Corridor improvement authority act,"
by amending sections 3 and 18 (MCL 125.2873 and 125.2888), section
3 as amended by 2013 PA 68 and section 18 as amended by 2008 PA 44.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(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, plaza, pedestrian mall,
and any improvements to a street, plaza, or pedestrian mall
including street furniture and beautification, sidewalk, trail,
lighting, traffic flow modification, park, parking facility,
recreational facility, right-of-way, structure, waterway, bridge,
lake, pond, canal, utility line or pipe, transit-oriented
development, transit-oriented facility, or building, including
access routes, that are either designed and dedicated to use by the
public generally or used by a public agency, or that are located in
a qualified development area and are for the benefit of or for the
protection of the health, welfare, or safety of the public
generally, whether or not used by 1 or more business entities,
provided that any road, street, or bridge shall be continuously
open to public access and that other property shall be located in
public easements or rights-of-way and designed to accommodate
foreseeable development of public facilities in adjoining areas.
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) "Qualified development area" means a development area that
meets 1 of the following:
(i) All of the following:
(A) Is located within a city with a population of 700,000 or
more.
(B) Contains at least 30 contiguous acres.
(C) Was owned by this state on December 31, 2003 and was
conveyed to a private owner before June 30, 2004.
(D) Is zoned to allow for mixed use that includes commercial
use and that may include residential use.
(E) Otherwise complies with the requirements of section 5(a),
(d), (e), and (g).
(F) Construction within the qualified development area begins
on or before the date 2 years after the effective date of the
amendatory act that added this subdivision.
(G) Is located in a distressed area.
(ii) Contains transit-oriented development or a transit-
oriented facility.
(e) "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 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.
(f) "State fiscal year" means the annual period commencing
October 1 of each year.
(g) "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 the
captured assessed value of real and personal property in the
development area. Except as otherwise provided in section 29, 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 18(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 18(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.
(h) "Transit-oriented development" means infrastructional
improvements that are located within 1/2 mile of a transit station
or transit-oriented facility that promotes transit ridership or
passenger rail use as determined by the board and approved by the
municipality in which it is located.
(i) "Transit-oriented facility" means a facility that houses a
transit station in a manner that promotes transit ridership or
passenger rail use.
(j) "Distressed area" means a local governmental unit that
meets all of the following:
(i) Has a population of 700,000 or more.
(ii) Shows a negative population change from 1970 to the date
of the most recent federal decennial census.
(iii) Shows an overall increase in the state equalized value
of real and personal property of less than the statewide average
increase since 1972.
(iv) Has a poverty rate, as defined by the most recent federal
decennial census, greater than the statewide average.
(v) Has had an unemployment rate higher than the statewide
average.
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 before January 1, 2017, and all 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 before January 1, 2017, and the authority
alters or amends the boundaries of the development area or extends
the duration of the existing finance plan, then the library board
or commission may, not later than 60 days after a public hearing is
held under this subsection, 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.
