HOUSE BILL No. 4688 April 24, 1997, Introduced by Reps. Jaye, Llewellyn, Rhead, Goschka, Whyman, Gernaat, Dobb and Kukuk and referred to the Committee on Tax Policy. A bill to amend 1956 PA 40, entitled "The drain code of 1956," by amending sections 626, 628, and 629 (MCL 280.626, 280.628, and 280.629). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 626. (1) When 2 or more public corporations other than 2 the state or a county or counties are to be assessed, the drain- 3 age board, or if appropriate in chapter 21 proceedings, the drain 4 commissioner, may determine that costs to be assessed to the 5 public corporations, in excess of those apportioned for drainage 6 to state or county highways, shall not be apportioned by the 7 establishment of a fixed percentage of costs to be borne by each 8 public corporation, but that the costs shall be assessed at large 9 to all of the public corporations in the aggregate,and10apportioned annually between the public corporations on the basis02973'97 d FDD 2 1of the relative valuations, as equalized, of each within the area2served by the drain,if the drainage board or drain commissioner 3shall determineDETERMINES that this method of apportionment 4 will more fairly result in the costs of the drain being appor- 5 tioned in accordance with the benefits to be derived. 6therefrom.COSTS ASSESSED UNDER THIS SECTION BEFORE JANUARY 1, 7 1997 SHALL BE APPORTIONED ANNUALLY BETWEEN THE PUBLIC CORPORA- 8 TIONS ON THE BASIS OF THE RELATIVE VALUATIONS, AS EQUALIZED, OF 9 EACH PUBLIC CORPORATION WITHIN THE AREA SERVED BY THE DRAIN. 10 COSTS ASSESSED UNDER THIS SECTION AFTER DECEMBER 31, 1996 SHALL 11 BE APPORTIONED ANNUALLY BETWEEN THE PUBLIC CORPORATIONS ON THE 12 BASIS OF THE TAXABLE VALUE OF EACH WITHIN THE AREA SERVED BY THE 13 DRAIN. Notice of tentative apportionmentin the foregoing14mannerUNDER THIS SECTION shall include a calculation of the 15 apportionment of costs between public corporations assessed in 16 the aggregate based on the latest available valuations. AS USED 17 IN THIS SECTION, SECTION 628, AND SECTION 629, "TAXABLE VALUE" 18 MEANS THAT VALUE DETERMINED UNDER SECTION 27A OF THE GENERAL 19 PROPERTY TAX ACT, 1893 PA 206, MCL 211.27A. 20 Sec. 628. On or before June 1 of each year, or, if neces- 21 sary in connection with notification of the due date of the ini- 22 tial installment only at any appropriate time, thechairman23 CHAIRPERSON of the drainage board shall notify each public corpo- 24 ration to which costs are apportioned as provided in this chapter 25 of the installment of assessment and interestthereoncoming 26 due before the next June 1. On or before the due date of an 27 installment, each public corporation shall pay to the county 02973'97 d 3 1 treasurer the full amount, together with interest accruing to the 2 due date. Failure to notify a public corporation shall not 3 excuse it from making payment of the installment and interest. 4 In determining the amounts due from public corporations assessed 5 in the aggregate BEFORE JANUARY 1, 1997, thechairman6 CHAIRPERSON shall calculate the total state equalized valuation 7 of each PUBLIC CORPORATION within the area served by the drain 8 and shall assign to each public corporation as its annual 9 installment the same percentage of the total aggregate install- 10 ment next falling due as the state equalized valuation of the 11 public corporation within the area served by the drain bears to 12 the total state equalized valuation within the area served by the 13 drain. In making those calculations, thechairmanCHAIRPERSON 14 shall use the state equalized valuation for the latest year in 15 which the valuations are finalized for the public corporations so 16 assessed, even though the valuations may no longer be current. 17 IN DETERMINING THE AMOUNTS DUE FROM PUBLIC CORPORATIONS ASSESSED 18 IN THE AGGREGATE AFTER DECEMBER 31, 1996, THE CHAIRPERSON SHALL 19 CALCULATE THE TOTAL TAXABLE VALUE OF EACH WITHIN THE AREA SERVED 20 BY THE DRAIN AND SHALL ASSIGN TO EACH PUBLIC CORPORATION AS ITS 21 ANNUAL INSTALLMENT THE SAME PERCENTAGE OF THE TOTAL AGGREGATE 22 INSTALLMENT NEXT FALLING DUE AS THE TAXABLE VALUE OF THE PUBLIC 23 CORPORATION WITHIN THE AREA SERVED BY THE DRAIN BEARS TO THE 24 TOTAL TAXABLE VALUE WITHIN THE AREA SERVED BY THE DRAIN. IN 25 MAKING THOSE CALCULATIONS, THE CHAIRPERSON SHALL USE THE TAXABLE 26 VALUE FOR THE LATEST YEAR IN WHICH THE VALUATIONS ARE FINALIZED 27 FOR THE PUBLIC CORPORATIONS SO ASSESSED, EVEN THOUGH THE 02973'97 d 4 1 VALUATIONS MAY NO LONGER BE CURRENT. If noncurrent valuations are 2 used, the drainage board may determine to adjust later payments 3 when valuations are finalized if the board in its sole discretion 4shall determineDETERMINES THAT the adjustmentto beIS nec- 5 essary to properly apportion costs between public corporations 6soassessed. 7 Sec. 629. In calculating amounts of assessments chargeable 8 against debt limitations of public corporations assessed under 9 this chapter BEFORE JANUARY 1, 1997, each public corporation 10 shall be charged with the same percentage of the total aggregate 11 at large assessment as the state equalized valuation of the 12 public corporation within the area served by the drain bears to 13 the total state equalized valuation within the area served by the 14 drain. The state equalized valuations used in those calculations 15 shall be those used in the latest notification of installment 16 sent by thechairmanCHAIRPERSON pursuant to section 628, and 17prior theretoshall be the latest STATE EQUALIZED valuations 18 available. IN CALCULATING AMOUNTS OF ASSESSMENTS CHARGEABLE 19 AGAINST DEBT LIMITATIONS OF PUBLIC CORPORATIONS ASSESSED UNDER 20 THIS CHAPTER AFTER DECEMBER 31, 1996, EACH PUBLIC CORPORATION 21 SHALL BE CHARGED WITH THE SAME PERCENTAGE OF THE TOTAL AGGREGATE 22 AT LARGE ASSESSMENT AS THE TAXABLE VALUE OF THE PUBLIC CORPORA- 23 TION WITHIN THE AREA SERVED BY THE DRAIN BEARS TO THE TOTAL TAX- 24 ABLE VALUE WITHIN THE AREA SERVED BY THE DRAIN. THE TAXABLE 25 VALUES USED IN THOSE CALCULATIONS SHALL BE THOSE USED IN THE 26 LATEST NOTIFICATION OF INSTALLMENT SENT BY THE CHAIRPERSON 02973'97 d 5 1 PURSUANT TO SECTION 628, AND SHALL BE THE LATEST TAXABLE VALUES 2 AVAILABLE. 02973'97 d Final page. FDD