SENATE BILL NO. 1181 June 4, 1998, Introduced by Senator STEIL and referred to the Committee on Appropriations. A bill to amend 1971 PA 140, entitled "State revenue sharing act of 1971," by amending sections 11 and 13 (MCL 141.911 and 141.913), section 11 as amended by 1996 PA 468 and section 13 as amended by 1996 PA 342; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1) For state fiscal years before the 1996-1997 2 state fiscal year, the department of management and budget shall 3 cause to be paid during each August, November, February, and May, 4 to counties on a per capita basis the collections from the state 5 income tax as certified by the department of treasury for the 6 quarter periods ending the prior June 30, September 30, December 7 31, and March 31 that are available for distribution to and 8 retention by counties. 00485'97 * RJA 2 1 (2) For state fiscal years beginning after September 30, 2 1992 and ending before October 1, 1996, the collections from the 3 state income tax otherwise available for distribution to counties 4 in November for the quarter period ending the prior September 30 5 shall be increased by $35,900,000.00 and the collections from the 6 state income tax otherwise available for distribution to counties 7 in August for the quarter period ending the prior June 30 shall 8 be decreased by $35,900,000.00. 9 (3) For THE 1996-1997 AND 1997-1998 state fiscal years, 10after the 1995-1996 state fiscal year and before the 1998-199911state fiscal year,the department of treasury shall cause to be 12 paid to counties on a per capita basis an amount equal to 24.5% 13 of the difference between 21.3% of the sales tax collections at a 14 rate of 4% in the 12-month period ending June 30 of the state 15 fiscal year in which the payments are made and the total distri- 16 bution for the state fiscal year under section 12a.For state17fiscal years after the 1997-1998 state fiscal year, the depart-18ment of treasury shall cause to be paid to each county the same19amount that was paid to that county under this section during the20immediately preceding state fiscal year from 24.5% of the differ-21ence between 21.3% of the sales tax collections at a rate of 4%22in the 12-month period ending June 30 of the state fiscal year in23which the payments are made and the total distribution for the24state fiscal year under section 12a. Each state fiscal year25after the 1997-1998 state fiscal year, the amount by which the26total collections available for distribution under this27subsection exceed the amount distributed under this subsection00485'97 * 3 1shall be deposited in the revenue sharing reserve fund created in2subsection (5).FOR STATE FISCAL YEARS AFTER THE 1997-1998 STATE 3 FISCAL YEAR, THE DEPARTMENT OF TREASURY SHALL CAUSE TO BE PAID TO 4 COUNTIES ON A PER CAPITA BASIS AN AMOUNT EQUAL TO 25.06% OF 21.3% 5 OF THE SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH 6 PERIOD ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAY- 7 MENTS ARE MADE. 8 (4) The payments under subsection (3) shall be made from 9 revenues collected during the state fiscal year in which the pay- 10 ments are made and shall be made during each October, December, 11 February, April, June, and August. Payments shall be based on 12 collections from the sales tax at a rate of 4% in the 2-month 13 period ending the prior August 31, October 31, December 31, 14 February 28, April 30, and June 30,lessAND FOR THE 1996-1997 15 AND 1997-1998 STATE FISCAL YEARS ONLY THE PAYMENTS SHALL BE 16 REDUCED BY 1/6 of the total distribution for the state fiscal 17 year under section 12a. For state fiscal years after the 18 1995-1996 state fiscal year, the collections from the sales tax 19 otherwise available for distribution to counties under subsection 20 (3) in December shall be increased by $17,000,000.00 and the col- 21 lections from the sales tax otherwise available for distribution 22 to counties under subsection (3) in April shall be decreased by 23 $17,000,000.00. 24(5) The revenue sharing reserve fund is created as a sepa-25rate fund in the general fund.26 Sec. 13. (1) This subsection and subsection (2) apply to 27 distributions to cities, villages, and townships during the state 00485'97 * 4 1 fiscal years before the 1996-1997 state fiscal year of 2 collections from the state income tax and single business tax. 3 Except as otherwise provided in subsection (2), the department of 4 treasury shall cause to be paid to each city, village, and town- 5 ship its share, computed in accordance with the tax effort for- 6 mula, of the following revenues: 7 (a) During each August, November, February, and May, the 8 collections from the state income tax for the quarter periods 9 ending the prior June 30, September 30, December 31, and March 31 10 that are available for distribution to cities, villages, and 11 townships under the income tax act of 1967,Act No. 281 of the12Public Acts of 1967, being sections 206.1 to 206.532 of the13Michigan Compiled Laws1967 PA 281, MCL 206.1 TO 206.532. 14 (b) The amount of the collections from the single business 15 tax available for distribution to cities, villages, and townships 16 under FORMER section 136 of the single business tax act,Act17No. 228 of the Public Acts of 1975, being section 208.136 of the18Michigan Compiled Laws1975 PA 228. 19 (2) The amount of collections of the state income tax other- 20 wise available for distribution to cities, villages, and town- 21 ships in November, February, and May, computed in accordance with 22 the tax effort formula, shall be increased by $22,600,000.00. 23 The amount of collections otherwise available for distribution to 24 cities, villages, and townships in August, computed in accordance 25 with the tax effort formula, shall be decreased by 26 $67,800,000.00. 00485'97 * 5 1 (3) This subsection applies to distributions to cities, 2 villages, and townships for the 1996-1997 state fiscal year. The 3 department shall cause to be paid in accordance with the tax 4 effort formula an amount equal to 75.5% of the difference between 5 21.3% of the sales tax collections at a rate of 4% in the 6 12-month period ending June 30 of the state fiscal year in which 7 the payments are made and the total distribution for the state 8 fiscal year under section 12a. 9 (4) The department of treasury shall cause to be paid during 10 the 1997-1998 state fiscal year an amount equal to 75.5% of the 11 difference between 21.3% of the sales tax collections at a rate 12 of 4% in the 12-month period ending June 30 of the state fiscal 13 year in which the payments are made and the total distribution 14 for the state fiscal year under section 12a AND FOR STATE FISCAL 15 YEARS AFTER THE 1997-1998 STATE FISCAL YEAR AS PROVIDED IN 16 SUBSECTION (9) AN AMOUNT EQUAL TO 74.94% OF THE DIFFERENCE 17 BETWEEN 21.3% OF THE SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 18 12-MONTH PERIOD ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH 19 THE PAYMENTS ARE MADE AND THE TOTAL DISTRIBUTION FOR THE STATE 20 FISCAL YEAR UNDER SECTION 12A, MINUS $18,000,000.00, both of the 21 following: 22 (a) To each city, village, and township, the amount of col- 23 lections distributed under subsection (3) to cities, villages, 24 and townships for the 1996-1997 state fiscal year or its pro rata 25 share of the collections if the collections are less than the 26 amount of collections distributed under subsection (3) for the 27 1996-1997 state fiscal year. A city's, village's, or township's 00485'97 * 6 1 share of revenues under this subdivision shall be computed using 2 the tax effort formula. 3 (b) To each city, village, and township its share of the 4 collections to the extent the total collections available for 5 distribution under this subsection exceed the amount distributed 6 to cities, villages, and townships under subdivision (a) for the 7 fiscal year. A city's, village's, or township's share of reve- 8 nues under this subdivision shall be computed on a per capita 9 basis. 10 (5) For state fiscal years after the 1997-1998 state fiscal 11 year, the department of treasury shall cause DISTRIBUTIONS DETER- 12 MINED UNDER SUBSECTIONS (6) AND (7) to be paid to each city, vil- 13 lage, and township from an amount equal to75.5%74.94% ofthe14difference between21.3% of the sales tax collections at a rate 15 of 4% in the 12-month period ending June 30 of the state fiscal 16 year in which the payments are made,and the total distribution17for the state fiscal year under section 12a, the amount distrib-18uted to the city, village, or township under this section during19the immediately preceding state fiscal year or its pro rata share20of the collections if the collections are less than the amount of21collections that were available for distribution in the immedi-22ately preceding state fiscal year. Each state fiscal year after23the 1997-1998 state fiscal year, the amount by which the total24collections available for distribution under this subsection25exceed the amount distributed under this subsection shall be26deposited in the revenue sharing reserve created in section2711(5)REDUCED BY $18,000,000.00 WHICH THE DEPARTMENT SHALL 00485'97 * 7 1 DISTRIBUTE TO CITIES, VILLAGES, AND TOWNSHIPS AT THE DEPARTMENT'S 2 DISCRETION TO BE USED FOR DISTRESSED COMMUNITIES. 3 (6)The department of treasury shall pay to counties,4cities, townships, and villages by October 31, 1995, $2.00 per5parcel for the administrative costs associated with the process-6ing of homestead affidavits filed in those counties, cities,7townships, and villages before December 1, 1994.THE DISTRIBU- 8 TION UNDER SUBSECTION (5) IS CALCULATED AS FOLLOWS AND AS PRO- 9 VIDED UNDER SUBSECTION (7): 10 (A) DETERMINE ALL OF THE FOLLOWING: 11 (i) THE PER CAPITA TAXABLE VALUE FOR EACH CITY, VILLAGE, AND 12 TOWNSHIP. 13 (ii) THE STATEWIDE PER CAPITA TAXABLE VALUE CALCULATED WITH- 14 OUT INCLUDING COUNTIES. 15 (iii) THE WEIGHTED AVERAGE PER CAPITA TAXABLE VALUE FOR EACH 16 CITY, VILLAGE, AND TOWNSHIP. 17 (iv) THE STATEWIDE WEIGHTED AVERAGE PER CAPITA TAXABLE VALUE 18 CALCULATED WITHOUT INCLUDING COUNTIES. 19 (v) THE WEIGHTED STATEWIDE STANDARD DEVIATION FOR PER CAPITA 20 TAXABLE VALUE. 21 (B) DETERMINE PER CAPITA TAXABLE VALUE FOR EACH CITY, VIL- 22 LAGE, AND TOWNSHIP BY DIVIDING THE WEIGHTED AVERAGE PER CAPITA 23 TAXABLE VALUE FOR EACH CITY, VILLAGE, AND TOWNSHIP BY THE 24 WEIGHTED STATEWIDE STANDARD DEVIATION FOR PER CAPITA TAXABLE 25 VALUE. 26 (C) USING THE RESULT FROM THE CALCULATION UNDER SUBDIVISION 27 (B), DETERMINE THE TAXABLE VALUE POPULATION WEIGHT FACTOR FOR 00485'97 * 8 1 EACH CITY, VILLAGE, AND TOWNSHIP. AS USED IN THIS SUBSECTION, 2 "TAXABLE VALUE POPULATION WEIGHT FACTOR" MEANS THE FOLLOWING: 3 (i) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 4 THAN 2.5, THE TAXABLE VALUE POPULATION WEIGHT FACTOR EQUALS 5 0.10. 6 (ii) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 7 THAN 1.5 AND LESS THAN OR EQUAL TO 2.5, THE TAXABLE VALUE POPULA- 8 TION WEIGHT FACTOR EQUALS 0.35. 9 (iii) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 10 THAN 0.5 AND LESS THAN OR EQUAL TO 1.5, THE TAXABLE VALUE POPULA- 11 TION WEIGHT FACTOR EQUALS 0.65. 12 (iv) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 13 THAN 0.2 AND LESS THAN OR EQUAL TO 0.5, THE TAXABLE VALUE POPULA- 14 TION WEIGHT FACTOR EQUALS 0.85. 15 (v) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 16 THAN -0.2 AND LESS THAN OR EQUAL TO 0.2, THE TAXABLE VALUE POPU- 17 LATION WEIGHT FACTOR EQUALS 1.00. 18 (vi) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 19 THAN -0.5 AND LESS THAN OR EQUAL TO -0.2, THE TAXABLE VALUE POPU- 20 LATION WEIGHT FACTOR EQUALS 1.15. 21 (vii) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 22 THAN -1.5 AND LESS THAN OR EQUAL TO -0.5, THE TAXABLE VALUE POPU- 23 LATION WEIGHT FACTOR EQUALS 1.40. 24 (viii) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF GREATER 25 THAN -2.5 AND LESS THAN OR EQUAL TO -1.5, THE TAXABLE VALUE POPU- 26 LATION WEIGHT FACTOR EQUALS 1.65. 00485'97 * 9 1 (ix) FOR A PER CAPITA TAXABLE VALUE CALCULATION OF LESS THAN 2 OR EQUAL TO -2.5, THE TAXABLE VALUE POPULATION WEIGHT FACTOR 3 EQUALS 1.90. 4 (D) DETERMINE THE ADJUSTED TAXABLE VALUE POPULATION FOR EACH 5 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE TAXABLE VALUE POP- 6 ULATION WEIGHT FACTOR AS DETERMINED UNDER SUBDIVISION (C) FOR 7 EACH CITY, VILLAGE, AND TOWNSHIP BY THE POPULATION OF THE CITY, 8 VILLAGE, OR TOWNSHIP. 9 (E) DETERMINE THE TOTAL STATEWIDE ADJUSTED TAXABLE VALUE 10 POPULATION WHICH IS THE SUM OF ALL ADJUSTED TAXABLE VALUE POPULA- 11 TION FOR ALL CITIES, VILLAGES, AND TOWNSHIPS. 12 (F) SUBTRACT $18,000,000.00 FROM 74.94% OF 21.3% OF THE 13 SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD 14 ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS 15 UNDER THIS SUBSECTION ARE MADE AND MULTIPLY THAT RESULT BY 0.45. 16 (G) MULTIPLY THE RESULT UNDER SUBDIVISION (F) BY THE 17 ADJUSTED TAXABLE VALUE POPULATION FOR EACH CITY, VILLAGE, AND 18 TOWNSHIP. 19 (H) DETERMINE THE UNIT TYPE POPULATION WEIGHT FACTOR FOR 20 EACH CITY, VILLAGE, AND TOWNSHIP. AS USED IN THIS SUBSECTION, 21 "UNIT TYPE POPULATION WEIGHT FACTOR" MEANS THE FOLLOWING: 22 (i) FOR A TOWNSHIP WITH A POPULATION OF LESS THAN 10,000, 23 THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.0. 24 (ii) FOR A TOWNSHIP WITH A POPULATION OF AT LEAST 10,000 BUT 25 LESS THAN 25,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.2. 00485'97 * 10 1 (iii) FOR A TOWNSHIP WITH A POPULATION OF AT LEAST 25,000 2 BUT LESS THAN 50,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3 1.8. 4 (iv) FOR A TOWNSHIP WITH A POPULATION OF 50,000 OR MORE, THE 5 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.4. 6 (v) FOR A VILLAGE WITH A POPULATION OF LESS THAN 1,000, THE 7 UNIT TYPE POPULATION WEIGHT FACTOR IS 1.5. 8 (vi) FOR A VILLAGE WITH A POPULATION OF 1,000 OR MORE, THE 9 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.0. 10 (vii) FOR A CITY WITH A POPULATION OF LESS THAN 5,000, THE 11 UNIT TYPE POPULATION WEIGHT FACTOR IS 2.5. 12 (viii) FOR A CITY WITH A POPULATION OF AT LEAST 5,000 BUT 13 LESS THAN 10,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 2.8. 14 (ix) FOR A CITY WITH A POPULATION OF AT LEAST 10,000 BUT 15 LESS THAN 30,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.0. 16 (x) FOR A CITY WITH A POPULATION OF AT LEAST 30,000 BUT LESS 17 THAN 50,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.2. 18 (xi) FOR A CITY WITH A POPULATION OF AT LEAST 50,000 BUT 19 LESS THAN 60,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.3. 20 (xii) FOR A CITY WITH A POPULATION OF AT LEAST 60,000 BUT 21 LESS THAN 100,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 22 3.5. 23 (xiii) FOR A CITY WITH A POPULATION OF AT LEAST 100,000 BUT 24 LESS THAN 140,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 25 4.0. 00485'97 * 11 1 (xiv) FOR A CITY WITH A POPULATION OF AT LEAST 140,000 BUT 2 LESS THAN 180,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3 4.1. 4 (xv) FOR A CITY WITH A POPULATION OF AT LEAST 180,000 BUT 5 LESS THAN 1,000,000, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 6 4.2. 7 (xvi) FOR A CITY WITH A POPULATION OF 1,000,000 OR MORE, THE 8 UNIT TYPE POPULATION WEIGHT FACTOR IS 4.5. 9 (I) DETERMINE THE ADJUSTED UNIT TYPE POPULATION FOR EACH 10 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE UNIT TYPE POPULA- 11 TION WEIGHT FACTOR FOR EACH CITY, VILLAGE, AND TOWNSHIP AS DETER- 12 MINED UNDER SUBDIVISION (H) BY THE POPULATION OF THE CITY, VIL- 13 LAGE, OR TOWNSHIP. 14 (J) DETERMINE THE TOTAL STATEWIDE ADJUSTED UNIT TYPE 15 POPULATION. AS USED IN THIS SUBSECTION, "TOTAL STATEWIDE 16 ADJUSTED UNIT TYPE POPULATION" MEANS THE SUM OF THE ADJUSTED UNIT 17 TYPE POPULATION FOR ALL CITIES, VILLAGES, AND TOWNSHIPS. 18 (K) DETERMINE THE PER CAPITA PAYMENT AMOUNT BY SUBTRACTING 19 $18,000,000.00 FROM AN AMOUNT EQUAL TO 74.94% OF 21.3% OF THE 20 SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD 21 ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS 22 UNDER THIS SUBSECTION ARE MADE, MULTIPLYING THAT AMOUNT BY 0.45, 23 AND THEN DIVIDING THAT RESULT BY THE TOTAL STATEWIDE ADJUSTED 24 UNIT TYPE POPULATION AS DETERMINED UNDER SUBDIVISION (J). 25 (l) EXCEPT AS PROVIDED IN SUBSECTION (10), THE PAYMENT UNDER 26 THIS SUBSECTION TO EACH CITY, VILLAGE, AND TOWNSHIP IS CALCULATED 27 BY MULTIPLYING THE ADJUSTED UNIT TYPE POPULATION FOR THE CITY, 00485'97 * 12 1 VILLAGE, OR TOWNSHIP BY THE PER CAPITA PAYMENT AMOUNT AS 2 DETERMINED UNDER SUBDIVISION (K). 3 (7) THE DISTRIBUTION UNDER SUBSECTION (5) SHALL BE CALCU- 4 LATED AS FOLLOWS AND AS PROVIDED UNDER SUBSECTION (6): 5 (A) DETERMINE THE POPULATION BASED TAXABLE VALUE FOR EACH 6 CITY, VILLAGE, AND TOWNSHIP BY DIVIDING THE TAXABLE VALUE OF THAT 7 CITY, VILLAGE, OR TOWNSHIP BY THE POPULATION OF THAT CITY, VIL- 8 LAGE, OR TOWNSHIP. 9 (B) DETERMINE THE TAXABLE VALUE PER CAPITA GUARANTEE AMOUNT 10 WHICH IS THE AMOUNT NEEDED TO ASSURE THAT THE TOTAL OF ALL YIELD 11 EQUALIZATION PAYMENTS ARE EQUAL TO 74.94% OF 21.3% OF THE SALES 12 TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING 13 JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS UNDER THIS 14 SUBSECTION ARE MADE MINUS $18,000,000.00 AND THEN MULTIPLIED BY 15 10%. THE CALCULATION UNDER THIS SUBDIVISION IS BASED ON A LIMIT 16 OF 0.002 OF LOCAL TAX EFFORT. 17 (C) DETERMINE THE EQUALIZATION BASE FOR EACH CITY, VILLAGE, 18 OR TOWNSHIP, WHICH IS EITHER OF THE FOLLOWING: 19 (i) IF THE POPULATION BASED TAXABLE VALUE AMOUNT FOR THE 20 CITY, VILLAGE, OR TOWNSHIP IS LESS THAN THE TAXABLE VALUE PER 21 CAPITA GUARANTEE, THE EQUALIZATION BASE FOR THE CITY, VILLAGE, OR 22 TOWNSHIP IS THE TAXABLE VALUE PER CAPITA GUARANTEE AMOUNT MINUS 23 POPULATION BASED TAXABLE VALUE FOR THAT CITY, VILLAGE, OR 24 TOWNSHIP. 25 (ii) IF THE POPULATION BASED TAXABLE VALUE AMOUNT FOR THE 26 CITY, VILLAGE, OR TOWNSHIP IS EQUAL TO OR GREATER THAN THE 00485'97 * 13 1 TAXABLE VALUE PER CAPITA GUARANTEE, THE EQUALIZATION BASE FOR THE 2 CITY, VILLAGE, OR TOWNSHIP IS ZERO. 3 (D) DETERMINE THE PER CAPITA YIELD FOR EACH CITY, VILLAGE, 4 AND TOWNSHIP BY MULTIPLYING THE EQUALIZATION BASE FOR THE CITY, 5 VILLAGE, OR TOWNSHIP BY THE LOCAL TAX EFFORT AS DETERMINED UNDER 6 THIS ACT FOR EACH CITY, VILLAGE, AND TOWNSHIP. THE CALCULATION 7 UNDER THIS SUBDIVISION IS BASED ON A LIMIT OF 0.002 OF LOCAL TAX 8 EFFORT. 9 (E) THE YIELD PAYMENT UNDER THIS SUBSECTION TO EACH CITY, 10 VILLAGE, AND TOWNSHIP IS CALCULATED BY MULTIPLYING THE PER CAPITA 11 YIELD FOR EACH CITY, VILLAGE, AND TOWNSHIP BY THE POPULATION OF 12 THAT CITY, VILLAGE, OR TOWNSHIP. 13 (8) THE LOCAL UNIT TAX EFFORT RATE UNDER SUBSECTION (7)(D) 14 SHALL NOT EXCEED 0.002. 15 (9) THE AMOUNT DISTRIBUTED UNDER SUBSECTION (7) SHALL BE 16 DETERMINED AS FOLLOWS: 17 (A) FOR THE 1998-1999 STATE FISCAL YEAR, 83.3% OF THE PAY- 18 MENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION (4) 19 AND 16.7% OF THE PAYMENT SHALL BE CALCULATED USING THE FORMULA 20 UNDER SUBSECTION (7). 21 (B) FOR THE 1999-2000 STATE FISCAL YEAR, 66.7% OF THE PAY- 22 MENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION (4) 23 AND 33.3% OF THE PAYMENT SHALL BE CALCULATED USING THE FORMULA 24 UNDER SUBSECTION (7). 25 (C) FOR THE 2000-2001 STATE FISCAL YEAR, 50.0% OF THE PAY- 26 MENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION (4) 00485'97 * 14 1 AND 50.0% OF THE PAYMENT SHALL BE CALCULATED USING THE FORMULA 2 UNDER SUBSECTION (7). 3 (D) FOR THE 2001-2002 STATE FISCAL YEAR, 33.3% OF THE PAY- 4 MENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION (4) 5 AND 66.7% OF THE PAYMENT SHALL BE CALCULATED USING THE FORMULA 6 UNDER SUBSECTION (7). 7 (E) FOR THE 2002-2003 STATE FISCAL YEAR, 16.7% OF THE PAY- 8 MENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION (4) 9 AND 83.3% OF THE PAYMENT SHALL BE CALCULATED USING THE FORMULA 10 UNDER SUBSECTION (7). 11 (F) FOR THE 2003-2004 STATE FISCAL YEAR AND EACH STATE 12 FISCAL YEAR AFTER THE 2003-2004 STATE FISCAL YEAR, 100% OF THE 13 PAYMENT SHALL BE CALCULATED USING THE FORMULA UNDER SUBSECTION 14 (7). 15 (10) THE TOTAL PAYMENTS FOR A STATE FISCAL YEAR TO EACH 16 CITY, VILLAGE, OR TOWNSHIP UNDER SUBSECTION (6) AND SECTION 10 OF 17 ARTICLE IX OF THE STATE CONSTITUTION OF 1963 SHALL NOT INCREASE 18 BY MORE THAN 8% OVER THE AMOUNT OF THE PAYMENT UNDER THIS ACT AND 19 SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 FOR 20 THAT CITY, VILLAGE, OR TOWNSHIP IN THE IMMEDIATELY PRECEDING 21 STATE FISCAL YEAR. 22 (11) FOR THE 1998-1999 STATE FISCAL YEAR, THE AMOUNT AVAIL- 23 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 24 SUBSECTIONS (7) AND (10) SHALL BE DISTRIBUTED ON A PER CAPITA 25 BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT RECEIVE PAYMENTS IN 26 THE STATE FISCAL YEAR THAT ARE LESS THAN THE PAYMENTS RECEIVED BY 00485'97 * 15 1 THE CITY, VILLAGE, AND TOWNSHIP IN THE IMMEDIATELY PRECEDING 2 STATE FISCAL YEAR BY 12% OR MORE. 3 (12) FOR THE 1999-2000 STATE FISCAL YEAR, THE AMOUNT AVAIL- 4 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 5 SUBSECTIONS (7) AND (10) SHALL BE DISTRIBUTED ON A PER CAPITA 6 BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT RECEIVED PAYMENTS 7 IN THE STATE FISCAL YEAR THAT ARE LESS THAN THE PAYMENTS RECEIVED 8 BY THE CITY, VILLAGE, OR TOWNSHIP IN THE IMMEDIATELY PRECEDING 9 STATE FISCAL YEAR BY 10% OR MORE. 10 (13) FOR THE 2000-2001 STATE FISCAL YEAR, THE AMOUNT AVAIL- 11 ABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DISTRIBUTED UNDER 12 SUBSECTIONS (7) AND (10) SHALL BE DISTRIBUTED ON A PER CAPITA 13 BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT RECEIVE PAYMENTS IN 14 THE STATE FISCAL YEAR THAT ARE LESS THAN THE PAYMENTS RECEIVED BY 15 THE CITY, VILLAGE, AND TOWNSHIP IN THE IMMEDIATELY PRECEDING 16 STATE FISCAL YEAR BY 8% OR MORE. 17 (14) FOR THE 2001-2002 AND 2002-2003 STATE FISCAL YEARS, THE 18 AMOUNT AVAILABLE FOR DISTRIBUTION IN EXCESS OF THE AMOUNT DIS- 19 TRIBUTED UNDER SUBSECTIONS (7) AND (10) SHALL BE DISTRIBUTED ON A 20 PER CAPITA BASIS TO CITIES, VILLAGES, AND TOWNSHIPS THAT RECEIVED 21 PAYMENTS IN THE STATE FISCAL YEAR THAT ARE LESS THAN THE PAYMENTS 22 RECEIVED BY THE CITY, VILLAGE, OR TOWNSHIP IN THE IMMEDIATELY 23 PRECEDING STATE FISCAL YEAR BY 4% OR MORE. 24 (15) FOR STATE FISCAL YEARS AFTER THE 2002-2003 STATE FISCAL 25 YEAR, THE AMOUNT AVAILABLE FOR DISTRIBUTION IN EXCESS OF THE 26 AMOUNT DISTRIBUTED UNDER SUBSECTIONS (7) AND (10) SHALL BE 27 DISTRIBUTED ON A PER CAPITA BASIS TO CITIES, VILLAGES, AND 00485'97 * 16 1 TOWNSHIPS THAT RECEIVE PAYMENTS IN THE STATE FISCAL YEAR THAT ARE 2 LESS THAN THE PAYMENTS RECEIVED BY THE CITY, VILLAGE, AND TOWN- 3 SHIP IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR. 4 (16)(7)The payments under subsections (3), (4), and (5) 5 shall be made during each October, December, February, April, 6 June, and August. Payments under subsections (3), (4), and (5) 7 shall be based on collections from the sales tax at the rate of 8 4% in the 2-month period ending the prior August 31, October 31, 9 December 31, February 28, April 30, and June 30,lessAND FOR 10 THE 1996-1997 AND 1997-98 STATE FISCAL YEARS ONLY, THE PAYMENTS 11 SHALL BE REDUCED BY 1/6 of the total distribution for the state 12 fiscal year under section 12a. 13 (17)(8)Payments under this section shall be made from 14 revenues collected during the state fiscal year in which the pay- 15 ments are made. 16 (18)(9)Distributions provided for by this act are 17 subject to an annual appropriation by the legislature. 18 Enacting section 1. Sections 11a, 12a, 14, and 15 of the 19 state revenue sharing act of 1971, 1971 PA 140, MCL 141.911a, 20 141.912a, 141.914, and 141.915, are repealed. 00485'97 * Final page. RJA