HOUSE BILL No. 5020

 

August 13, 2003, Introduced by Reps. Sheen, Newell, Kooiman, Palmer, Garfield, Stakoe, Hummel, Milosch, Hoogendyk, Ward, Condino, Farrah, O'Neil, Huizenga, Richardville and Hune and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1963 PA 55, entitled                                              

                                                                                

    "An act to provide for the incorporation of public authorities to           

    acquire, own, and operate or cause to be operated mass                      

    transportation systems; to require the state to guarantee payment           

    of certain claims against certain transportation authorities and            

    to give the state a lien in satisfaction of payment; to prescribe           

    the rights, powers, and duties of those public authorities; to              

    provide for the issuance of bonds; to provide for the levy and              

    collection of certain taxes; and to authorize contracts between             

    those authorities and either public or private corporations to              

    carry out the operation of those mass transportation systems,"              

                                                                                

    by amending section 7 (MCL 124.357), as amended by 2002 PA 337.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 7.  (1) For the purpose of acquiring, improving,                       

                                                                                

2   enlarging, or extending a mass transportation system, the                   

                                                                                

3   authority may issue self-liquidating revenue bonds under the                

                                                                                

4   revenue bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140, or            

                                                                                

5   any other act providing for the issuance of self-liquidating                

                                                                                

6   revenue bonds.  The bonds shall not be a general obligation of              

                                                                                

7   the authority, but shall be payable solely from the revenue of              


                                                                                

1   the mass transportation system.  However, if the authority issues           

                                                                                

2   self-liquidating revenue bonds with a pledge of the full faith              

                                                                                

3   and credit of the municipality, those revenue bonds are subject             

                                                                                

4   to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to           

                                                                                

5   141.2821.                                                                   

                                                                                

6       (2) An authority formed under this act may levy a tax on all                

                                                                                

7   of the taxable property within the political subdivisions that              

                                                                                

8   comprise the authority for public transportation purposes as                

                                                                                

9   authorized by this act.                                                     

                                                                                

10      (3) The tax authorized in subsection (2) shall not exceed                   

                                                                                

11  5 mills of the state equalized valuation on each dollar of                  

                                                                                

12  assessed valuation in the political subdivisions that comprise              

                                                                                

13  the applicable authority.                                                   

                                                                                

14      (4) The tax authorized under subsection (2) shall not be                    

                                                                                

15  levied except upon the approval of a majority of the registered             

                                                                                

16  electors residing in the political subdivisions that comprise the           

                                                                                

17  authority affected and qualified to vote and voting on the tax at           

                                                                                

18  a general or special election.  The election may be called by               

                                                                                

19  resolution of the board of the authority.  The recording officer            

                                                                                

20  of the authority shall file a copy of the resolution of the board           

                                                                                

21  calling the election with the clerk of each affected county,                

                                                                                

22  city, or township not less than 60 days before the date of the              

                                                                                

23  election.  The resolution calling the election shall contain a              

                                                                                

24  statement of the proposition to be submitted to the electors.               

                                                                                

25  Each county, city, and township clerk and all other county, city,           

                                                                                

26  and township officials shall undertake those steps to properly              

                                                                                

27  submit the proposition to the electors of the county, city, and             


                                                                                

1   township at the election specified in the resolutions of the                

                                                                                

2   authority.  The election shall be conducted and canvassed in                

                                                                                

3   accordance with the Michigan election law, 1954 PA 116, MCL 168.1           

                                                                                

4   to 168.992, except that if the authority is located in more than            

                                                                                

5   1 county, the election shall be canvassed by the state board of             

                                                                                

6   canvassers.  The results of the election shall be certified to              

                                                                                

7   the board of the authority promptly after the date of the                   

                                                                                

8   election.  The authority shall not call more than 1 election                

                                                                                

9   within a calendar year under this section for the approval of the           

                                                                                

10  tax authorized by subsection (2) without the approval of the                

                                                                                

11  legislative bodies of a majority of the member political                    

                                                                                

12  subdivisions of the authority.  If the election is a special                

                                                                                

13  election, the authority in which the election is held shall pay             

                                                                                

14  the costs of the election.  If the election is a general                    

                                                                                

15  election, the authority in which the election is held shall pay             

                                                                                

16  the increased costs of the election due to the placement of the             

                                                                                

17  proposition on the ballot by the authority or an amount                     

                                                                                

18  negotiated between the authority and the appropriate political              

                                                                                

19  subdivisions.                                                               

                                                                                

20      (5) The taxes authorized by this section may be levied at a                 

                                                                                

21  rate and for a period of not more than 5 years as determined by             

                                                                                

22  the authority in the resolution calling the election and as shall           

                                                                                

23  be set forth in the proposition submitted to the electors.                  

                                                                                

24      (6) The tax rate authorized by this section shall be levied                 

                                                                                

25  and collected as are all ad valorem property taxes in this state            

                                                                                

26  and the recording officer of the authority shall at the                     

                                                                                

27  appropriate times certify to the proper tax assessing or                    


                                                                                

1   collecting officers of each tax collecting county, city, and                

                                                                                

2   township the amount of taxes to be levied and collected each year           

                                                                                

3   by each county, city, and township.  The board of the authority             

                                                                                

4   shall determine on which tax roll, if there is more than 1, of              

                                                                                

5   the county, city, or township that the taxes authorized by this             

                                                                                

6   section shall be collected.  Each tax assessing and collecting              

                                                                                

7   officer and each county treasurer shall levy and collect the                

                                                                                

8   taxes certified by the authority and pay the taxes to the                   

                                                                                

9   authority  by the time  as provided in section 43 of the general            

                                                                                

10  property tax act, 1893 PA 206, MCL 211.43.  The tax rate                    

                                                                                

11  authorized by this section may be first levied by the authority             

                                                                                

12  as a part of the first tax roll of the appropriate counties,                

                                                                                

13  cities, and townships occurring after the election described in             

                                                                                

14  subsection (4).   The  Before January 1, 2005, the tax may be               

                                                                                

15  levied and collected on the  June  July or December tax roll                

                                                                                

16  immediately following the date of election, if the tax is                   

                                                                                

17  certified to the proper tax assessing officials not later than              

                                                                                

18  May 15 or November 15, respectively, of the year in which the               

                                                                                

19  election is held.  After December 31, 2004, the tax may be levied           

                                                                                

20  and collected on the July tax roll following the date of                    

                                                                                

21  election, if the tax is certified to the property tax assessing             

                                                                                

22  officials not later than May 15 of the year in which the election           

                                                                                

23  is held.                                                                    

                                                                                

24      Enacting section 1.  This amendatory act does not take                      

                                                                                

25  effect unless Senate Bill No. _____ or House Bill No. 5010                  

                                                                                

26  (request no. 02479'03) of the 92nd Legislature is enacted into              

                                                                                

27  law.