September 24, 2008, Introduced by Rep. Hildenbrand and referred to the Committee on New Economy and Quality of Life.
A bill to amend 1986 PA 281, entitled
"The local development financing act,"
by amending section 12 (MCL 125.2162), as amended by 2000 PA 248.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) If the board determines that it is necessary for
the achievement of the purposes of this act, the board shall
prepare and submit a tax increment financing plan to the governing
body. The plan shall be in compliance with section 13 and shall
include a development plan as provided in section 15. The plan
shall also contain the following:
(a) A statement of the reasons that the plan will result in
the development of captured assessed value that could not otherwise
be expected. The reasons may include, but are not limited to,
activities of the municipality, authority, or others undertaken
before formulation or adoption of the plan in reasonable
anticipation that the objectives of the plan would be achieved by
some means.
(b) An estimate of the captured assessed value for each year
of the plan. The plan may provide for the use of part or all of the
captured assessed value or, subject to subsection (3), of the tax
increment revenues attributable to the levy of any taxing
jurisdiction, but the portion intended to be used shall be clearly
stated in the plan. The board or the municipality creating the
authority may exclude from captured assessed value a percentage of
captured assessed value as specified in the plan or growth in
property value resulting solely from inflation. If excluded, the
plan shall set forth the method for excluding growth in property
value resulting solely from inflation.
(c) The estimated tax increment revenues for each year of the
plan.
(d) A detailed explanation of the tax increment procedure.
(e) The maximum amount of note or bonded indebtedness to be
incurred, if any.
(f) The amount of operating and planning expenditures of the
authority and municipality, the amount of advances extended by or
indebtedness incurred by the municipality, and the amount of
advances by others to be repaid from tax increment revenues.
(g) The costs of the plan anticipated to be paid from tax
increment revenues as received.
(h) The duration of the development plan and the tax increment
plan.
(i) An estimate of the impact of tax increment financing on
the revenues of all taxing jurisdictions in which the eligible
property is or is anticipated to be located.
(j) A legal description of the eligible property to which the
tax increment financing plan applies or shall apply upon
qualification as eligible property.
(k) An estimate of the number of jobs to be created as a
result of implementation of the tax increment financing plan.
(l) The proposed boundaries of a certified technology park to
be created under an agreement proposed to be entered into pursuant
to section 12a or of an aerotropolis development area designated
under section 12c, an identification of the real property within
the certified technology park or the aerotropolis development area
to be included in the tax increment financing plan for purposes of
determining tax increment revenues, and whether personal property
located in the certified technology park or the aerotropolis
development area is exempt from determining tax increment revenues.
(2) Except as provided in subsection (7), a tax increment
financing plan shall provide for the use of tax increment revenues
for public facilities for eligible property whose captured assessed
value produces the tax increment revenues or, to the extent the
eligible property is located within a business development area or
an aerotropolis development area, for other eligible property
located in the business development area or the aerotropolis
development area. Public facilities for eligible property include
the development or improvement of access to and around, or within
the eligible property, of road facilities reasonably required by
traffic flow to be generated by the eligible property, and the
development or improvement of public facilities that are necessary
to service the eligible property, whether or not located on that
eligible property. If the eligible property identified in the tax
increment
financing plan is property to which section 2(p)(iv)
2(r)(iv) applies, the tax increment financing plan shall not provide
for the use of tax increment revenues for public facilities other
than those described in the development plan as of April 1, 1991.
Whether or not provided in the tax increment financing plan, if the
eligible property identified in the tax increment financing plan is
property
to which section 2(p)(iv) 2(r)(iv) applies,
then to the
extent that captured tax increment revenues are utilized for the
costs of cleanup of identified soil and groundwater contamination,
the captured tax increment revenues shall be first credited against
the shares of responsibility for the total costs of cleanup of
uncollectible parties who are responsible for the identified soil
and groundwater contamination pursuant to law, and then shall be
credited on a pro rata basis against the shares of responsibility
for the total costs of cleanup of other parties who are responsible
for the identified soil and groundwater contamination pursuant to
law.
(3) The percentage of taxes levied for school operating
purposes that is captured and used by the tax increment financing
plan and the tax increment financing plans under 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, and the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2672, shall not be
greater than the percentage capture and use of taxes levied by a
municipality or county for operating purposes under the tax
increment financing plan and tax increment financing plans under
1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
authority act, 1980 PA 450, MCL 125.1801 to 125.1830, and the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672. For purposes of the previous sentence, taxes levied by
a county for operating purposes include only millage allocated for
county or charter county purposes under the property tax limitation
act, 1933 PA 62, MCL 211.201 to 211.217a.
(4) Except as otherwise provided by this subsection, approval
of the tax increment financing plan shall be in accordance with the
notice, hearing, disclosure, and approval provisions of sections 16
and 17. 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. For a plan submitted by an authority
established by 2 or more municipalities under sections 3(2) and
4(7) or by an authority established by an aerotropolis development
corporation under sections 3(3) and 4(8), the notice required by
section 16 may be published jointly by the municipalities in which
the authority district is located or by the aerotropolis
development
corporation. The
For a plan submitted by an
authority
exercising its powers under sections 3(2) and 4(7), the plan shall
not be considered approved unless each governing body in which the
authority district is located makes the determinations required by
section 17 and approves the same plan, including the same
modifications, if any, made to the plan by any other governing
body. A plan submitted by an authority exercising its powers under
sections 3(3) and 4(8) shall not be required to be approved by the
governing body of each municipality in which the authority district
is located.
(5) 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
express their views and recommendations regarding the tax increment
financing plan. The authority shall fully inform the taxing
jurisdictions about the fiscal and economic implications of the
proposed tax increment financing plan. 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 authority district is located to share a
portion of the captured assessed value of the district or to
distribute tax increment revenues among taxing jurisdictions. Upon
adoption of the plan, the collection and transmission of the amount
of tax increment revenues, as specified in this act, shall be
binding on all taxing units levying ad valorem property taxes or
specific local taxes against property located in the authority
district.
(6) Property qualified as a public facility under section
2(aa)(ii) 2(cc)(ii) that is acquired by an
authority may be sold,
conveyed, or otherwise disposed to any person, public or private,
for fair market value or reasonable monetary consideration
established by the authority with the concurrence of the Michigan
economic development corporation and the municipality in which the
eligible property is located based on a fair market value appraisal
from a fee appraiser only if the property is sold for fair market
value. Unless the property acquired by an authority was located
within
a certified business park, or a certified technology park,
or an aerotropolis development area at the time of disposition, an
authority shall remit all monetary proceeds received from the sale
or disposition of property that qualified as a public facility
under
section 2(aa)(ii) 2(cc)(ii) and
was purchased with tax
increment revenues to the taxing jurisdictions. Proceeds
distributed to taxing jurisdictions shall be remitted in proportion
to the amount of tax increment revenues attributable to each taxing
jurisdiction in the year the property was acquired. If the property
was acquired in part with funds other than tax increment revenues,
only that portion of the monetary proceeds received upon
disposition that represent the proportion of the cost of
acquisition paid with tax increment revenues is required to be
remitted to taxing jurisdictions. If the property is located within
a
certified business park, or a
certified technology park, or an
aerotropolis development area at the time of disposition, the
monetary proceeds received from the sale or disposition of that
property may be retained by the authority for any purpose necessary
to further the development program for the certified business park,
or
certified technology park, or aerotropolis development area in
accordance with the tax increment financing plan.
(7) The tax increment financing plan may provide for the use
of tax increment revenues from a certified technology park for
public facilities for any eligible property located in the
certified technology park. The tax increment financing plan may
provide for the use of tax increment revenues from an aerotropolis
development area for public facilities within or without the
aerotropolis development area from which the tax increment revenues
are derived, provided that the tax increment revenues shall be used
for public facilities within the municipality whose levy has
contributed to the tax increment revenues except as otherwise
provided in the intergovernmental agreement or articles of
incorporation creating the aerotropolis development corporation.
(8) If title to property qualified as a public facility under
section
2(aa)(ii) 2(cc)(ii) and
acquired by an authority with tax
increment revenues is sold, conveyed, or otherwise disposed of
pursuant to subsection (6) for less than fair market value, the
authority shall enter into an agreement relating to the use of the
property with the person to whom the property is sold, conveyed, or
disposed of, which agreement shall include a penalty provision
addressing repayment to the authority if any interest in the
property is sold, conveyed, or otherwise disposed of by the person
within 12 years after the person received title to the property
from the authority. This subsection shall not require enforcement
of a penalty provision for a conveyance incident to a merger,
acquisition, reorganization, sale-lease back transaction, employee
stock ownership plan, or other change in corporate or business form
or structure.
(9) The penalty provision described in subsection (8) shall
not be less than an amount equal to the difference between the fair
market value of the property when originally sold, conveyed, or
otherwise disposed of and the actual consideration paid by the
person to whom the property was originally sold, conveyed, or
otherwise disposed of.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6502(request no.
07377'08 **).
(b) Senate Bill No.____ or House Bill No. 6503(request no.
07781'08 **).
(c) Senate Bill No.____ or House Bill No. 6504(request no.
07806'08 **).
(d) Senate Bill No.____ or House Bill No. 6505(request no.
07807'08 **).
(e) Senate Bill No.____ or House Bill No. 6506(request no.
08280'08 *).
(f) Senate Bill No.____ or House Bill No. 6507(request no.
08281'08 *).
(g) Senate Bill No.____ or House Bill No. 6508(request no.
08282'08 *).
(h) Senate Bill No.____ or House Bill No. 6509(request no.
08283'08 *).
(i) Senate Bill No.____ or House Bill No. 6511(request no.
08285'08 *).