SENATE BILL No. 862

November 29, 2001, Introduced by Senator HAMMERSTROM and referred to the Committee

on Finance.

A bill to amend 1986 PA 59, entitled

"Resort district rehabilitation act,"

by amending sections 8 and 14 (MCL 125.2208 and 125.2214),

section 8 as amended by 1996 PA 209.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 8. (1) Subject to the provisions of section 7, an

2 authority may levy an ad valorem tax on the taxable value of the

3 real and tangible personal property located in the resort dis-

4 trict and not exempt by law. The tax shall not be more than 3

5 mills for a period of not more than 5 years. The tax shall be

6 collected by the township creating the authority levying the

7 tax. The township shall collect the tax at the same time and in

8 the same manner as it collects its other ad valorem taxes. The

9 tax shall be paid to the treasurer of the authority and credited

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1 to the general fund of the authority for purposes of the

2 authority.

3 (2) An authority may borrow money and issue its notes for

4 that money pursuant to the municipal finance act, Act No. 202 of

5 the Public Acts of 1943, being sections 131.1 to 139.3 of the

6 Michigan Compiled Laws REVISED MUNICIPAL FINANCE ACT, 2001

7 PA 34, MCL 141.2101 TO 141.2821, in anticipation of collection of

8 the ad valorem tax authorized in this section.

9 (3) Except as provided in subsection (4), the authority may

10 extend the tax levied under this section for periods of not more

11 than 5 years. An extension of the tax shall not be more than 3

12 mills. An extension shall not be levied unless, before September

13 15 of the year following the year in which a previously approved

14 tax levy expires, the extension is approved by a majority of the

15 electors who reside in the resort district and who vote on the

16 proposition.

17 (4) If a tax levy has been previously levied and approved by

18 a majority of electors who reside within the resort district on 2

19 previous occasions, the authority may extend the tax levied under

20 this section for a period of not more than 10 years. An exten-

21 sion of the tax shall not be more than 3 mills. An extension

22 under this subsection shall not be levied unless, before

23 September 15 following the year in which a previously approved

24 tax levy expires, the extension is approved by a majority of the

25 electors who reside in the resort district and who vote on the

26 proposition.

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1 Sec. 14. (1) If authorized in the ordinance or resolution

2 of the township creating the authority, by resolution of its

3 board, and subject to the limitations set forth in this section,

4 the authority may authorize, issue, and sell its bonds to finance

5 a rehabilitation plan. The bonds shall mature not later than the

6 last year for which the authority is entitled to levy an ad

7 valorem tax pursuant to section 8 and shall be subject to the

8 municipal finance act, Act No. 202 of the Public Acts of 1943,

9 being sections 131.1 to 139.3 of the Michigan Compiled Laws

10 REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

11 141.2821.

12 (2) If electors have approved the millage pursuant to

13 section 7, the township board may, by a majority vote of its mem-

14 bers make a limited tax pledge of its full faith and credit for

15 the payment of principal and interest on the authority's bonds

16 issued pursuant to this section.

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