HB-5086, As Passed Senate, June 7, 2018

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5086

A bill to amend 2014 PA 86, entitled

"Local community stabilization authority act,"

by amending sections 5, 13, 14, 15, 16, 16a, 17, 18, and 21 (MCL

123.1345, 123.1353, 123.1354, 123.1355, 123.1356, 123.1356a,

123.1357, 123.1358, and 123.1361), sections 5 and 13 as amended by

2015 PA 122, sections 14, 15, 16, and 17 as amended by 2017 PA 102,

and section 21 as amended by 2016 PA 124.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5. As used in this act:

(a) "Acquisition cost" means that term as defined in section 3

of the state essential services assessment act, 2014 PA 92, MCL

211.1053, multiplied by the following percentages:

(i) For eligible personal property reported to the department

and described in section 5(2)(a) of the state essential services

assessment act, 2014 PA 92, MCL 211.1055, 100%.

(ii) For eligible personal property reported to the department

and described in section 5(2)(b) of the state essential services

assessment act, 2014 PA 92, MCL 211.1055, 52.1%.

(iii) For eligible personal property reported to the

department and described in section 5(2)(c) of the state essential

services assessment act, 2014 PA 92, MCL 211.1055, 37.5%.

(b) "Ambulance services" means patient transport services,

nontransport prehospital life support services, and advanced life

support, paramedic, and medical first-responder services.

authority, a metropolitan authority established under section 7.

(d) "Captured value" means 1 or more of the following:

(i) For a tax increment finance authority under the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to ~~125.2672,~~

125.2670, captured taxable value as determined in sections 2 and 7

of the brownfield redevelopment financing act, 1996 PA 381, MCL

125.2652 and 125.2657.

(ii) For a tax increment finance authority under 1975 PA 197,

MCL 125.1651 to 125.1681, captured assessed value as defined in

section 1 of 1975 PA 197, MCL 125.1651.

(iii) For a tax increment finance authority under the tax

increment finance authority act, 1980 PA 450, MCL 125.1801 to

125.1830, captured assessed value as defined in section 1 of the

tax increment finance authority act, 1980 PA 450, MCL 125.1801.

(iv) For a tax increment finance authority under the local

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,

captured assessed value as defined in section 2 of the local

development financing act, 1986 PA 281, MCL 125.2152.

(v) For a tax increment finance authority under the historic

neighborhood tax increment finance authority act, 2004 PA 530, MCL

125.2841 to 125.2866, captured assessed value as defined in section

2 of the historic neighborhood tax increment finance authority act,

2004 PA 530, MCL 125.2842.

(vi) For a tax increment finance authority under the corridor

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899,

captured assessed value as defined in section 2 of the corridor

improvement authority act, 2005 PA 280, MCL 125.2872.

(vii) For a tax increment finance authority under the

neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to

125.2932, captured assessed value as defined in section 2 of the

neighborhood improvement authority act, 2007 PA 61, MCL 125.2912.

(viii) For a tax increment finance authority under the water

resource improvement tax increment finance authority act, 2008 PA

94, MCL 125.1771 to 125.1793, captured assessed value as defined in

section 2 of the water resource improvement tax increment finance

authority act, 2008 PA 94, MCL 125.1772.

(ix) For a tax increment finance authority under the private

investment infrastructure funding act, 2010 PA 250, MCL 125.1871 to

125.1883, captured assessed value as defined in section 2 of the

private investment infrastructure funding act, 2010 PA 250, MCL

125.1872.

(x) For a tax increment finance authority under the nonprofit

street railway act, 1867 PA 35, MCL 472.1 to 472.27, captured

assessed value as defined in section 23 of the nonprofit street

railway act, 1867 PA 35, MCL 472.23.

(e) "Commercial personal property" means, except as otherwise

provided in subparagraph (iii), all of the following:

(i) Personal property classified as commercial personal

property under section 34c of the general property tax act, 1893 PA

206, MCL 211.34c.

(ii) Personal property subject to the industrial facilities

tax under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is

sited on land classified as commercial real property under section

34c of the general property tax act, 1893 PA 206, MCL 211.34c.

(iii) Commercial personal property does not include personal

property that after 2012 was classified in the municipality where

it is currently located as real property or utility personal

property.

(f) "Council" means the council established for the authority

under section 9.

(g) "Debt loss" means, for a municipality that is not a local

school district, intermediate school district, or tax increment

finance authority, the amount of ad valorem property taxes and any

specific tax levied for the payment of principal and interest of

obligations either approved by the voters before January 1, 2013 or

incurred before January 1, 2013 pledging the unlimited or limited

taxing power of the municipality that are lost as a result of the

exemption of industrial personal property and commercial personal

property under sections 9m, 9n, and 9o of the general property tax

act, 1893 PA 206, MCL 211.9m, 211.9n, and 211.9o.

(h) "Department" means the department of treasury.

(i) "Eligible personal property" means personal property

described in section 3(e)(i), (iii), and (iv) of the state

essential services assessment act, 2014 PA 92, MCL 211.1053.

(j) "Essential services" means all of the following:

(i) Ambulance services.

(ii) Fire services.

(iii) Police services.

(iv) Jail operations.

(v) The funding of pensions for personnel providing services

described in subparagraphs (i) to (iv).

(k) "Fire services" means services in the prevention and

suppression of fire, homeland security response, hazardous

materials response, rescue, fire marshal, and medical first-

responder services.

(l) "Fiscal year" means either an annual period that begins on

October 1 and ends on September 30 or the fiscal year for the

authority established by the council.

(m) "Increased captured value" means the anticipated increase

in captured value for all industrial personal property and

commercial personal property in a tax increment finance authority

that would have occurred as a result of either the addition of

personal property as part of a specific project or the expiration

of an exemption under section 7k, 7ff, or 9f of the general

property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,

after 2013 if the exemptions under section 9m, 9n, or 9o of the

general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and

211.9o, were not in effect. In For calculations made under section

16a prior to calendar year 2018, in order for an anticipated

increase in captured value to qualify as increased captured value,

the tax increment financing plan must have demonstrated before 2013

that the tax increment finance authority was relying on this

anticipated increase in captured value to pay 1 or more qualified

obligations by specifically projecting the anticipated increase in

captured value that would be used to pay the qualified obligations

and the plan must meet all of the requirements in subdivisions (i)

through (vii). For calculations made under section 16a in calendar

year 2018 and after, in order for an anticipated increase in

captured value related to the expiration of an exemption under

section 7k, 7ff, or 9f of the general property tax act, 1893 PA

206, MCL 211.7k, 211.7ff, and 211.9f, after 2013 if the exemptions

under section 9m, 9n, or 9o of the general property tax act, 1893

PA 206, MCL 211.9m, 211.9n, and 211.9o, were not in effect, to

qualify as increased captured value, the tax increment finance

authority or the municipality in which the authority is located

must have documentation demonstrating that before or during 2013

the tax increment finance authority was relying on this increase in

captured value to pay 1 or more qualified obligations. For

calculations made under section 16a in calendar year 2018 and

after, in order for an anticipated increase in captured value

related to the addition of personal property as part of a specific

project to qualify as increased captured value, the tax increment

financing plan must have demonstrated before 2013 that the tax

increment finance authority was relying on this increase in

captured value to pay 1 or more qualified obligations by

specifically projecting the anticipated increase in captured value

that would be used to pay the qualified obligations and the plan

must meet all of the following:

(i) The tax increment financing plan was fully approved by the

governing body of the applicable local government not later than

December 31, 2012. This does not prevent subsequent amendment to

the tax increment financing plan, provided the amendment does not

change the amount of any obligation under the plan, the scope of

the project or projects described in the plan, or the time needed

to repay any obligation.

(ii) If the tax increment financing plan is part of a

brownfield plan under the brownfield redevelopment financing act,

1996 PA 381, MCL 125.2651 to ~~125.2672,~~ 125.2670, any needed work

plans were also approved by the appropriate state agencies not

later than December 31, 2012. This does not prevent subsequent

amendment to a work plan, provided the amendment does not change

the amount of any obligation under the plan, the scope of the

project or projects described in the plan, or the time needed to

repay any obligation.

(iii) The tax increment financing plan identifies a particular

site owner and site occupant that is engaged in industrial

processing or direct integrated support, as defined in section 9m

of the general property tax act, 1893 PA 206, MCL 211.9m. This does

not preclude a change in the site owner or occupant, provided that

change in the site owner or occupant did not result from a

financial difficulty encountered during the construction and

installation of the project and provided change in the site owner

or occupant will not result in any change in the project.

(iv) The tax increment financing plan identifies a particular

project on a specific parcel and that project includes the addition

of particular personal property that is eligible manufacturing

personal property, as defined in section 9m of the general property

tax act, 1893 PA 206, MCL 211.9m, that is also identified in the

tax increment financing plan.

(v) The personal property that is eligible manufacturing

personal property, as defined in section 9m of the general property

tax act, 1893 PA 206, MCL 211.9m, and is identified in the tax

increment financing plan comprises not less than 20% of the true

cash value of the improvements to be made as part of the specific

project identified in the tax increment financing plan. ~~The~~

~~requirement under this subparagraph does not apply to the addition~~

~~of personal property as a result of the expiration of an exemption~~

~~under section 7k, 7ff, or 9f of the general property tax act, 1893~~

~~PA 206, MCL 211.7k, 211.7ff, and 211.9f.~~

(vi) Before December 31, 2012, the specific project identified

in the tax increment financing plan had obtained all necessary

local zoning approvals, including any necessary rezoning, special

land use, and site plan approvals for that project.

(vii) Before December 31, 2012, orders had been placed and

significant investments made in the personal property that is

eligible manufacturing personal property, as defined in section 9m

of the general property tax act, 1893 PA 206, MCL 211.9m, to be

located on the site.

(n) "Increased value from expired tax exemptions" means the

increase in taxable value subject to tax of industrial personal

property and commercial personal property placed in service before

2013 that would have occurred after 2013 if the exemptions under

section 9m or 9n of the general property tax act, 1893 PA 206, MCL

211.9m and 211.9n, were not in effect as a result of the expiration

of an exemption under section 7k, 7ff, or 9f of the general

property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,

that had been in effect in 2013, assuming an exemption under

section 7k of the general property tax act, 1893 PA 206, MCL

211.7k, was not extended under section 11a of 1974 PA 198, MCL

207.561a, and an exemption under section 9f of the general property

tax act, 1893 PA 206, MCL 211.9f, was not extended under section

9f(8) of the general property tax act, 1893 PA 206, MCL 211.9f.

(o) "Industrial personal property" means, except as otherwise

provided in subparagraph (iii), all of the following:

(i) Personal property classified as industrial personal

property under section 34c of the general property tax act, 1893 PA

206, MCL 211.34c.

(ii) Personal property subject to the industrial facilities

tax under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is

sited on land classified as industrial real property under section

34c of the general property tax act, 1893 PA 206, MCL 211.34c.

(iii) Industrial personal property does not include personal

property that after 2012 was classified in the municipality where

it is currently located as real property or utility personal

property.

(p) "Jail operations" means all of the following:

(i) The operation of a jail, holding cell, holding center, or

lockup as those terms are defined in section 62 of the corrections

code of 1953, 1953 PA 232, MCL 791.262.

(ii) The operation of a juvenile detention facility by a

county juvenile agency as authorized under section 7 of the county

juvenile agency act, 1998 PA 518, MCL 45.627.

(q) "Local authority" means any authority, excluding an

authority created under this act or a tax increment finance

authority.

(r) ~~(q)~~ "Local community stabilization share" means that

portion of the use tax levied by the authority and authorized under

the use tax act, 1937 PA 94, MCL 205.91 to 205.111.

(s) ~~(r)~~ "Municipality" includes, but is not limited to, the

following:

(i) Counties.

(ii) Cities.

(iii) Villages.

(iv) Townships.

(v) ~~Authorities, excluding an authority created under this~~

~~act.~~Local authorities.

(vi) Local school districts.

(vii) Intermediate school districts.

(viii) Community college districts.

(ix) Libraries.

(x) Tax increment finance authorities.

(xi) (x) Other local and intergovernmental taxing units.

(t) ~~(s)~~ "Personal property exemption loss" means 1 of the

following:

(i) For a municipality that is not a local school district,

intermediate school district, or tax increment finance authority,

the 2013 taxable value of commercial personal property and

industrial personal property minus the current year taxable value

of commercial personal property and industrial personal property

and minus the small taxpayer exemption loss if, for years after

2017, the small taxpayer exemption loss is greater than zero. For

calendar years 2016 and 2017, the 2013 taxable values of commercial

personal property and industrial personal property are the values

reported under section 13(3) by the county equalization director in

2016 and 2017, respectively, except as provided in section 14.

Beginning for calendar year 2018, the 2013 taxable values of

commercial personal property and industrial personal property are

the values reported under section 13(3) by the county equalization

director in calendar year 2015. The calculation under this

subparagraph must be modified for municipality boundary changes to

the extent that the boundary changes affect the property taxes

levied by the municipality. For millages from which renaissance

zone property is exempt, the calculation under this subparagraph

must be adjusted to exclude the taxable values of commercial

personal property and industrial personal property exempt under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696.

(ii) For a municipality that is a local school district,

intermediate school district, or tax increment finance authority,

the 2013 taxable value of commercial personal property and

industrial personal property minus the current year taxable value

of commercial personal property and industrial personal property.

For calendar years 2016 and 2017, the 2013 taxable values of

commercial personal property and industrial personal property are

the values reported under section 13(3) by the county equalization

director in 2016 and 2017, respectively, except as provided in

sections 15, 16, and 16a. Beginning for calendar year 2018, the

2013 taxable values of commercial personal property and industrial

personal property are the values reported under section 13(3) by

the county equalization director in calendar year 2015. The

calculation under this subparagraph must be modified for

municipality boundary changes to the extent that the boundary

changes affect the property taxes levied by the municipality. For

millages from which renaissance zone property is exempt, the

calculation under this subparagraph must be adjusted to exclude the

taxable values of commercial personal property and industrial

personal property exempt under the Michigan renaissance zone act,

1996 PA 376, MCL 125.2681 to 125.2696.

(u) ~~(t)~~ "Police services" means law enforcement services for

the prevention and detection of crime, the enforcement of laws and

ordinances, homeland security response, and medical first-responder

services.

(v) ~~(u)~~ "Qualified loss" means the amounts calculated under

section 14(1) that are not distributed to the municipality under

section 17(4)(a). The qualified loss cannot be less than zero.

(w) ~~(v)~~ "Qualified obligation" means a written promise to pay

by a tax increment finance authority, whether evidenced by a

contract, agreement, lease, sublease, bond, resolution promising

repayment of an advance, or note, or a requirement to pay imposed

by law. A qualified obligation does not include a payment required

solely because of default upon an obligation, employee salary, or

consideration paid for the use of municipal offices. A qualified

obligation does not include bonds that have been economically

defeased by refunding.

(x) ~~(w) "School debt loss"~~ "Qualified school debt millage

rate" means the following:

(i) For calendar years before calendar year 2018, the ~~amount~~

~~of revenue lost from ad valorem property taxes and any specific tax~~

millage rate specifically levied by the local school district or

intermediate school district in the current year for the payment of

principal and interest of obligations approved by the electors

before January 1, 2013 or obligations pledging the unlimited taxing

power of a local school district or intermediate school district

incurred before January 1, 2013. ~~, as a result of the exemption of~~

~~industrial personal property and commercial personal property under~~

~~sections 9m, 9n, and 9o of the general property tax act, 1893 PA~~

~~206, MCL 211.9m, 211.9n, and 211.9o.~~

(ii) For calendar years 2018 and 2019, either the millage rate

described in sub-subparagraph (A), if a local school district or

intermediate school district, in the current year and any prior

year after 2017, has elected to use the millage rate described in

sub-subparagraph (A) and has reported the millage rate described in

sub-subparagraph (A) to the department under section 13(4), or the

total of all debt millage rates prescribed in sub-subparagraph (B),

if the local school district or intermediate school district, in

the current year or any prior year after 2017, has not elected to

use the millage rate described in sub-subparagraph (A) or has not

reported the millage rate described in sub-subparagraph (A) to the

department under section 13(4):

(A) The millage rate specifically levied by the local school

district or intermediate school district in the current year for

the payment of principal and interest of obligations approved by

the electors before January 1, 2015 or obligations pledging the

unlimited taxing power of a local school district or intermediate

school district incurred before January 1, 2015.

(B) The lesser of the following:

(I) The highest total of all debt millage rates levied by the

local school district or intermediate school district in a single

year for the period 2012 through 2014.

(II) The total of all debt millage rates levied by the local

school district or intermediate school district in the year

immediately preceding the current calendar year.

(iii) For calendar years after 2019, either the millage rate

described in sub-subparagraph (A), if a local school district or

intermediate school district has elected to use the millage rate

described in subparagraph (ii)(A) in calendar years 2018 and 2019

and has elected to use the millage rate described in sub-

subparagraph (A) in the current year and all prior years after 2019

and has reported under subparagraph (ii)(A) to the department under

section 13(4) in calendar years 2018 and 2019 and has reported

under sub-subparagraph (A) to the department under section 13(4) in

the current year and all prior years after 2019, or the total of

all debt millage rates described in sub-subparagraph (B), if the

local school district or intermediate school district has not

elected to use the millage rate described in subparagraph (ii)(A)

in calendar years 2018 and 2019 or has not elected to use the

millage rate described in sub-subparagraph (A) in the current year

and all prior years after 2019 or has not reported under

subparagraph (ii)(A) to the department under section 13(4) in

calendar years 2018 and 2019 or has not reported under sub-

subparagraph (A) to the department under section 13(4) in the

current year and all prior years after 2019:

(A) The millage rate specifically levied by the local school

district or intermediate school district in the current year for

the payment of principal and interest of obligations approved by

the electors before January 1, 2013 or obligations pledging the

unlimited taxing power of a local school district or intermediate

school district incurred before January 1, 2013.

(B) The lesser of the following:

(I) The highest total of all debt millage rates levied by the

local school district or intermediate school district in a single

year for the period 2012 through 2014.

(II) The total of all debt millage rates levied by the local

school district or intermediate school district in the year

immediately preceding the current calendar year.

(y) ~~(x)~~ "School operating loss not reimbursed by the school

aid fund" means the amount of revenue lost from ad valorem property

taxes levied under section 1211 of the revised school code, 1976 PA

451, MCL 380.1211, as a result of the exemption of industrial

personal property and commercial personal property under sections

9m, 9n, and 9o of the general property tax act, 1893 PA 206, MCL

211.9m, 211.9n, and 211.9o, for mills other than basic school

operating mills, as that term is defined in section 2c of the use

tax act, 1937 PA 94, MCL 205.92c.

(z) ~~(y)~~ "Small taxpayer exemption loss" means 1 of the

following:

(i) ~~For the 2014 calendar year,~~ For a municipality, the 2013

taxable value of commercial personal property and industrial

personal property minus the 2014 taxable value of commercial

personal property and industrial personal property. For the 2014

calendar year, the 2013 and 2014 taxable values of commercial

personal property and industrial personal property are the values

reported under section 13(2) by the county equalization director in

calendar year 2014. For the 2015, 2016, and 2018 calendar years and

subsequent calendar years, the 2013 and 2014 taxable values of

commercial personal property and industrial personal property are

the values reported under section 13(3) by the county equalization

director in calendar year 2015. For the 2017 calendar year, the

2013 and 2014 taxable values of commercial personal property and

industrial personal property are the values reported under section

13(3) by the county equalization director in calendar year 2015,

except as provided in section 14. The calculation under this

subparagraph must be modified for municipality boundary changes to

the extent that the boundary changes affect the property taxes

levied by the municipality. For millages from which renaissance

zone property is exempt, the calculation under this subparagraph

must be adjusted to exclude the taxable value of commercial

personal property and industrial personal property exempt under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696.

(ii) For the 2015 calendar year and subsequent calendar years,

for a municipality, the greater of the amount calculated under

subparagraph (i) and the 2013 taxable value of commercial personal

property and industrial personal property minus the 2015 taxable

value of commercial personal property and industrial personal

property. For the 2015, 2016, and 2018 calendar years and

subsequent calendar years, the 2013 and 2015 taxable values of

commercial personal property and industrial personal property are

the values reported under section 13(3) by the county equalization

director in calendar year 2015. For the 2017 calendar year, the

2013 and 2015 taxable values of commercial personal property and

industrial personal property are the values reported under section

13(3) by the county equalization director in calendar year 2015,

except as provided in section 14. The calculation under this

subparagraph must be modified for municipality boundary changes to

the extent that the boundary changes affect the property taxes

levied by the municipality. For millages from which renaissance

zone property is exempt, the calculation under this subparagraph

must be adjusted to exclude the taxable value of commercial

personal property and industrial personal property exempt under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696.

(aa) ~~(z)~~ "Specific tax" means a tax levied under 1974 PA 198,

MCL 207.551 to 207.572.

(bb) ~~(aa)~~ "Tax increment finance authority" means an authority

created under 1 or more of the following:

(i) 1975 PA 197, MCL 125.1651 to 125.1681.

(ii) The tax increment finance authority act, 1980 PA 450, MCL

125.1801 to 125.1830.

(iii) The local development financing act, 1986 PA 281, MCL

125.2151 to 125.2174.

(iv) The brownfield redevelopment financing act, 1996 PA 381,

MCL 125.2651 to ~~125.2672.~~125.2670.

(v) The historic neighborhood tax increment finance authority

act, 2004 PA 530, MCL 125.2841 to 125.2866.

(vi) The corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(vii) The neighborhood improvement authority act, 2007 PA 61,

MCL 125.2911 to 125.2932.

(viii) The water resource improvement tax increment finance

authority act, 2008 PA 94, MCL 125.1771 to 125.1793.

(ix) The private investment infrastructure funding act, 2010

PA 250, MCL 125.1871 to 125.1883.

(x) The nonprofit street railway act, 1867 PA 35, MCL 472.1 to

472.27.

(cc) ~~(bb)~~ "Tax increment small taxpayer loss" means the amount

of revenue lost by a municipality that is a tax increment finance

authority due to the exemption provided by section 9o of the

general property tax act, 1893 PA 206, MCL 211.9o.

(dd) ~~(cc)~~ "Taxable value" means all of the following:

(i) Except as otherwise provided in subparagraph (ii), that

value determined under section 27a of the general property tax act,

1893 PA 206, MCL 211.27a.

(ii) For real or personal property subject to the industrial

facilities tax under section 14(3) or (4) of 1974 PA 198, MCL

207.564, 50% of that value determined under section 27a of the

general property tax act, 1893 PA 206, MCL 211.27a.

(ee) ~~(dd)~~ "Total qualified loss" means the total amount of

qualified losses of all municipalities, as determined by the

department.

(ff) ~~(ee)~~ "Utility personal property" means that term as

described in section 34c of the general property tax act, 1893 PA

206, MCL 211.34c.

Sec. 13. (1) Not later than June 5, 2014, the assessor for

each city and township shall report to the county equalization

director all of the following:

(a) The 2013 taxable value of commercial personal property and

industrial personal property for each municipality in the city or

township.

(b) The 2014 taxable value of commercial personal property and

industrial personal property for each municipality in the city or

township.

the city or township.

(2) Not later than June 20, 2014, the equalization director

for each county shall report to the department the information

described in subsection (1) for each municipality in the county.

For each municipality levying a millage in more than 1 county, the

county equalization director responsible for compiling the

municipality's taxable value under section 34d of the general

property tax act, 1893 PA 206, MCL 211.34d, shall compile the

municipality's information described in subsection (1).

(3) Not later than June 5, 2015, June 5, 2016, June 5, 2017,

and each ~~June 5~~ May 15 thereafter, the assessor for each city and

township shall report to the county equalization director the

current year taxable value of commercial personal property and

industrial personal property for each municipality in the city or

township. Not later than June 20, 2015, ~~and each June 20~~ the

equalization director for each county shall report to the

department the 2013, 2014, and 2015 taxable values of commercial

personal property and industrial personal property for each

municipality in the county. Not later than June 20, 2016, the

equalization director for each county shall report to the

department the 2013 and 2016 taxable values of commercial personal

property and industrial personal property for each municipality in

the county. Not later than June 20, 2017, the equalization director

for each county shall report to the department the 2013 and 2017

taxable values of commercial personal property and industrial

personal property for each municipality in the county. Each May 31

thereafter, the equalization director for each county shall report

to the department the current year taxable value of commercial

personal property and industrial personal property for each

municipality in the county. For calendar years 2015 through 2017,

the 2013, 2014, and current year taxable values of commercial

personal property and industrial personal property shall be the

current taxable values as of the reporting deadline for the county

equalization director. For calendar year 2018 and thereafter, the

current year taxable value of commercial personal property and

industrial personal property shall be the current taxable value on

May 10. Not later than June 20, 2015, for each municipality levying

a millage in more than 1 county, the county equalization director

responsible for compiling the municipality's taxable value under

section 34d of the general property tax act, 1893 PA 206, MCL

211.34d, shall compile and report to the department the

municipality's 2013, 2014, and 2015 taxable values of commercial

personal property and industrial personal property. not later than

June 20, 2016, for each municipality levying a millage in more than

1 county, the county equalization director responsible for

compiling the municipality's taxable values under section 34d of

the general property tax act, 1893 PA 206, MCL 211.34d, shall

compile and report to the department the municipality's 2013 and

2016 taxable values of commercial personal property and industrial

personal property. Not later than June 20, 2017, for each

municipality levying a millage in more than 1 county, the county

equalization director responsible for compiling the municipality's

taxable values under section 34d of the general property tax act,

1893 PA 206, MCL 211.34d, shall compile and report to the

department the municipality's 2013 and 2017 taxable values of

commercial personal property and industrial personal property. Each

June 7 thereafter, for each municipality levying a millage in more

than 1 county, the county equalization director responsible for

compiling the municipality's taxable value under section 34d of the

general property tax act, 1893 PA 206, MCL 211.34d, shall compile

and report to the department the municipality's ~~information~~

~~described in this subsection.~~current year taxable value of

commercial personal property and industrial personal property.

(4) Not later than August 15, 2014, August 15, 2015, August

15, 2016, and ~~each~~ August 15, ~~thereafter,~~ 2017, each municipality

shall report to the department the millage rate levied or to be

levied that year for a millage described in section 5(g) or ~~(w)~~ (x)

that is used to calculate an appropriation under section 17(1)(a)

or a distribution under section 17(4)(a)(i). For 2014 and 2015, the

rate of that millage shall be calculated using the sum of the

municipality's taxable value and the municipality's small taxpayer

exemption loss. ~~Beginning in~~ For 2016 and ~~each year thereafter,~~

2017, the rate of that millage shall be calculated using the sum of

the municipality's taxable value and the municipality's personal

property exemption loss. For calendar year 2018 and subsequent

years, a local school district and intermediate school district

shall reduce its debt millage rate to reflect the payment to be

received under section 17(4)(a)(i). By August 1, 2018 and by each

August 1 thereafter, a local school district and intermediate

school district may report its millage rate calculated under

section 5(x)(ii)(A) or (iii)(A) and a local school district shall

report the operating mills levied under section 1211 of the revised

school code, 1976 PA 451, MCL 380.1211, on industrial personal

property as that term is defined in section 1211 of the revised

school code, 1976 PA 451, MCL 380.1211, levied or to be levied that

year. For 2014 and 2015, the department shall calculate each

municipality's debt loss or school debt loss by multiplying the

municipality's millage rate reported under this subsection by the

municipality's small taxpayer exemption loss. ~~Beginning in~~ For 2016

and ~~each year thereafter,~~ 2017, the department shall calculate each

municipality's school debt loss by multiplying the municipality's

millage rate reported under this subsection by the municipality's

personal property exemption loss. For calendar year 2018 and

subsequent years, the department shall calculate the municipality's

school debt loss by multiplying the municipality's qualified school

debt millage rate by the municipality's personal property exemption

loss.

(5) ~~The department shall~~ Not later than May 1 of each year,

the department shall do the following:

(a) For the 2014, 2015, 2016, and 2017 calendar years'

calculations, calculate and make available to each municipality by

~~May 1 of each year~~ that municipality's sum of the lowest rate of

each individual millage levied in the period between 2012 and the

year immediately preceding the current year. For a municipality,

other than a municipality described in section 14, the calculation

shall exclude debt millage and millage levied under section 1211 of

the revised school code, 1976 PA 451, MCL 380.1211, on industrial

personal property as that term is defined in section 1211 of the

revised school code, 1976 PA 451, MCL 380.1211. For an individual

millage rate not levied in 1 of the years, the lowest millage rate

is zero. A millage used to make the calculations under this act

must be levied against both real property and personal property.

(b) For the calendar year 2018 and subsequent years'

calculations, for a municipality that is not a local school

district or tax increment finance authority:

(i) Calculate each municipality's total millage levied in

2012, 2013, and 2014, respectively.

(ii) Calculate each municipality's eligible millage cap as the

highest total millage levied in 2012, 2013, or 2014.

(iii) Calculate each municipality's total millage levied in

the year immediately preceding the current year.

(iv) Calculate each individual millage rate for each

municipality as follows:

(A) If the eligible millage cap, as calculated under

subparagraph (ii), exceeds the total millage levied in the year

immediately preceding the current year, as calculated under

subparagraph (iii), then use each individual millage levied in the

year immediately preceding the current year.

(B) If the total millage levied in the year immediately

preceding the current year, as calculated under subparagraph (iii),

exceeds the eligible millage cap, as calculated under subparagraph

(ii), then prorate each individual millage levied in the year

immediately preceding the current year downward to equal the

eligible millage cap, as calculated under subparagraph (ii).

(v) For an intermediate school district, the calculations in

this subdivision shall exclude debt millage. A millage used to make

the calculations under this act must be levied against both real

property and personal property.

calculations, for a local school district:

(i) Calculate each individual millage rate levied by each

local school district in 2012, 2013, and 2014.

(ii) Calculate each local school district's eligible millage

cap as the highest rate levied in 2012, 2013, or 2014 for each

individual millage.

(iii) Calculate each individual millage rate for each local

school district to be the lesser of the millage cap calculated

under subparagraph (ii) and the millage rate levied in the year

immediately preceding the current year for that individual millage.

(iv) the calculations in this subdivision shall exclude debt

millage and operating mills levied under section 1211 of the

revised school code, 1976 PA 451, MCL 380.1211, on industrial

personal property as that term is defined in section 1211 of the

revised school code, 1976 PA 451, MCL 380.1211. A millage used to

make the calculations under this act must be levied against both

real property and personal property.

(6) Not later than June 5, 2016, June 5, 2017, and each ~~June 5~~

May 31 thereafter, the assessor for each city and township shall

report to the department and the county equalization director the

increased value from expired tax exemptions for each municipality

that is subject to section 14(2) and that levies taxes in the city

or township. ~~Not later than June 20, 2016, and each June 20~~

~~thereafter, the equalization director for each county shall report~~

~~to the department the increased value from expired tax exemptions~~

~~for each municipality that is subject to section 14(2) and that~~

~~levies taxes in the city or township. For each municipality subject~~

~~to section 14(2) that levies a millage in more than 1 county, the~~

~~county equalization director responsible for compiling the~~

~~municipality's taxable value under section 34d of the general~~

~~property tax act, 1893 PA 206, MCL 211.34d, shall compile the~~

~~municipality's information described in this subsection.~~

(7) For a millage that is not general operating millage and

that is dedicated in part, but not solely, for the cost of

essential services, a county, township, village, city, or local

authority shall annually report the portion of the rate calculated

for that millage under subsection (5) that is dedicated for the

cost of essential services. This report shall be submitted to the

department, in a form and manner prescribed by the department, by

August 1, 2018 and by each August 1 thereafter. If the county,

township, village, city, or local authority fails to report to the

department by August 1, the department shall determine that the

millage is dedicated solely for the cost of essential services.

Sec. 14. (1) Not later than November 7, 2017, and each

~~September~~ October 7 thereafter, for each municipality that is not a

local school district, intermediate school district, or tax

increment finance authority, the department shall do all of the

following:

(a) Calculate the municipality's personal property exemption

loss.

(b) Multiply the municipality's personal property exemption

loss by the millage rates calculated under section 13(5).

the amount calculated under subdivision (b) by the amount required

to reflect ~~the final order of a court or body of competent~~

~~jurisdiction related to any prior year calculation under this~~

~~subsection. An adjustment under this subdivision shall only be made~~

~~for municipalities for which~~ changes in prior year taxable values

that affect any prior year calculation under this subsection and

that can be calculated from taxable values reported under section

151(1) of the state school aid act of 1979, 1979 PA 94, MCL

388.1751.

(d) ~~Adjust~~ Subtract from the amount calculated under

subdivision (b), as adjusted by subdivision (c), by the amount

calculated under section 16a(2) for captured taxes levied by the

municipality not including taxes attributable to increased captured

value.

(2) Not later than November 7, 2017, and each ~~September~~

October 7 thereafter, for each municipality that is a county,

township, village, city, or local authority that provides essential

services, the department shall do all of the following:

(a) Add to the amount calculated under subsection (1)(a) any

increased value from expired tax exemptions for the current year.

~~(b) Subtract from the amount calculated under subdivision (a)~~

~~the amount calculated under section 16a(2)(b) for the municipality,~~

~~not including any amount attributable to increased captured value.~~

~~(c) Multiply the result of the calculation in subdivision (b)~~

~~by the millage rate calculated under section 13(5) for general~~

~~operating millage.~~

~~(d) Multiply the result of the calculation in subdivision (c)~~

~~by the percentage of the municipality's general operating millage~~

~~used to fund the cost of essential services in the municipality's~~

~~fiscal year ending in 2012. The department shall calculate each~~

~~municipality's percentage of general operating millage used to fund~~

~~the cost of essential services in the municipality's fiscal year~~

~~ending in 2012, unless the municipality includes the calculation in~~

~~its comprehensive annual financial report for the municipality's~~

~~fiscal year ending in either 2014 or 2015 or otherwise reports the~~

~~calculation to the department in a form and in a manner prescribed~~

~~by the department.~~

(b) Multiply the millage rate calculated under section 13(5)

for general operating millage by the percentage of the

municipality's general operating millage used to fund the cost of

essential services in the municipality's fiscal year ending in

2012. The department shall calculate each municipality's percentage

of general operating millage used to fund the cost of essential

services in the municipality's fiscal year ending in 2012, unless

the municipality includes the calculation in its comprehensive

annual financial report for the municipality's fiscal year ending

in either 2014 or 2015 or otherwise reports the calculation to the

department in a form and in a manner prescribed by the department.

by the result of the calculation in subdivision (b).

(d) Multiply the amount calculated under section 16a(2) for

captured taxes from the general operating millage levied by the

municipality not including taxes attributable to increased captured

value by the percentage of the municipality's general operating

millage used to fund the cost of essential services in the

municipality's fiscal year ending in 2012 and subtract the

resulting amount from the amount calculated under subdivision (c).

(e) Add to the result of the calculation in subdivision (d) an

amount calculated by multiplying the ~~amount calculated under~~

~~subdivision (b) by the~~ millage ~~rates~~ rate calculated under section

13(5) for each millage that ~~are~~ is not general operating millage

and that is dedicated ~~solely~~ in whole or in part for the cost of

essential services ~~levied on industrial personal property and~~

~~commercial personal property.~~ by 1 or by the portion reported for

that millage under section 13(7), as applicable, multiplying the

resulting product for each millage by the amount calculated under

subdivision (a), and adding the results. A millage levied to fund a

pension under the fire fighters and police officers retirement act,

1937 PA 345, MCL 38.551 to 38.562, is dedicated ~~solely~~ for the cost

of essential services.

(f) Subtract from the result of the calculation in subdivision

(e) the amount calculated under section 16a(2) for captured taxes

from the portion of millage dedicated for the cost of essential

services levied by the municipality not including taxes

attributable to increased captured value.

(3) Not later than May ~~10,~~ 24, 2016, for each municipality

that is a city, the department shall do all of the following:

(a) Calculate the municipality's 2014 and 2015 small taxpayer

exemption loss.

(b) Multiply the 2014 small taxpayer exemption loss if greater

than zero by the millage rates calculated under section 13(5) for

2014, excluding debt millage.

than zero by the millage rates calculated under section 13(5) for

2015, excluding debt millage.

(d) Add the amounts calculated under subdivisions (b) and (c).

(e) Calculate the sum of the municipality's debt loss for 2014

and 2015 reimbursed under section 17(1)(a) for millages used to

calculate the amounts under subdivisions (b) and (c).

(f) Calculate the amount of any tax increment small taxpayer

loss for captured taxes levied by the municipality in 2014 and 2015

for millages used to calculate the amounts under subdivisions (b)

and (c).

(4) Not later than November 7, 2017, and each ~~September~~

October 7 thereafter, for each municipality that is not a local

school district, intermediate school district, or tax increment

finance authority, the department shall do all of the following:

(a) Calculate the municipality's 2015 small taxpayer exemption

loss.

(b) Multiply the municipality's 2015 small taxpayer exemption

loss by the millage rates calculated under section 13(5).

the amount calculated under subdivision (b) by the amount required

to reflect ~~the final order of a court or body of competent~~

~~jurisdiction related to any prior year calculation under this~~

~~subsection. An adjustment under this subdivision shall only be made~~

~~for municipalities for which~~ changes in prior year taxable values

that affect any prior year calculation under this subsection and

that can be calculated from taxable values reported under section

151(1) of the state school aid act of 1979, 1979 PA 94, MCL

388.1751.

(d) ~~Adjust~~ Subtract from the amount calculated under

subdivision (b), as adjusted by subdivision (c), by the amount

calculated under section 16a(2) for captured taxes levied by the

municipality not including taxes attributable to increased captured

value. The ~~adjustment~~ subtraction under this subdivision shall only

be made to the extent that the ~~adjustment~~ subtraction made under

subsection (1)(d) did not fully account for all captured taxes

levied by the municipality not including taxes attributable to

increased captured value.

Sec. 15. Not later than November 7, 2017, and each ~~August 15~~

October 7 thereafter, for each municipality that is a local school

district, the department shall do all of the following:

(a) Calculate the municipality's personal property exemption

loss.

(b) Multiply the result of the calculation in subdivision (a)

by the ~~sum of the lowest rate of each~~ individual millage levied

under section 1212 of the revised school code, 1976 PA 451, MCL

380.1212, and section 2 of 1917 PA 156, MCL 123.52, ~~levied by that~~

~~municipality in the period between 2012 and the year immediately~~

~~preceding the current year. For an individual millage rate not~~

~~levied in 1 of the years, the lowest millage rate is zero.~~as

calculated under section 13(5).

the amount calculated under subdivision (b) by the amount required

to reflect ~~the final order of a court or body of competent~~

~~jurisdiction related to~~ changes in prior year taxable values that

affect any prior year calculation under this section and that can

be calculated from taxable values reported under section 151(1) of

the state school aid act of 1979, 1979 PA 94, MCL 388.1751.

(d) Subtract from the result of the calculation in subdivision

(b), as adjusted by subdivision (c), the amount calculated under

section 16a(2) for captured taxes levied by the municipality under

section 1212 of the revised school code, 1976 PA 451, MCL 380.1212,

and section 2 of 1917 PA 156, MCL 123.52, not including taxes

attributable to increased captured value.

Sec. 16. Not later than November 7, 2017, and each ~~August 15~~

October 7 thereafter, for each municipality that is an intermediate

school district, the department shall do all of the following:

(a) Calculate the municipality's personal property exemption

loss.

(b) Multiply the result of the calculation in subdivision (a)

by the millage rates calculated under section 13(5).

the amount calculated under subdivision (b) by the amount required

to reflect ~~the final order of a court or body of competent~~

~~jurisdiction related to~~ changes in prior year taxable values that

affect any prior year calculation under this section and that can

be calculated from taxable values reported under section 151(1) of

the state school aid act of 1979, 1979 PA 94, MCL 388.1751.

(d) Subtract from the result of the calculation in subdivision

(b), as adjusted by subdivision (c), the amount calculated under

section 16a(2) for captured taxes levied by that municipality not

including taxes attributable to increased captured value.

Sec. 16a. (1) Not later than June 15, 2014 and June 15, 2015,

each municipality that is a tax increment finance authority shall

calculate and report to the department the municipality's tax

increment small taxpayer loss for the current calendar year.

(2) Not later than June 15, 2016, and each June 15 thereafter,

each municipality that is a tax increment finance authority shall

do all of the following for each of its tax increment financing

plans:

(a) Calculate separately for each category of property the

~~total~~ captured value of all industrial personal property and

commercial personal property in the municipality that is a tax

increment finance authority in 2013 and add any increased captured

value for the current year.

(b) From ~~the~~ each amount calculated in subdivision (a),

subtract the ~~total~~ captured value of all industrial personal

property and commercial personal property in the municipality that

is a tax increment finance authority in the current year ~~. If the~~

~~resulting amount, when added to the taxable value of all property~~

~~within the tax increment finance authority in the current year,~~

~~would result in a captured value for all property within the tax~~

~~increment finance authority that is less than the resulting amount,~~

~~then this captured value shall be used instead of the resulting~~

~~amount.~~

~~(c) Multiply the result of the calculation in subdivision (b)~~

for that category of property and multiply the resulting amount by

~~the sum of the lowest rate of~~ each individual millage ~~levied in the~~

~~period between 2012 and the year immediately preceding the current~~

~~year,~~ rate calculated under section 13(5), to the extent the

millage is subject to capture by that tax increment finance

authority for that category of property. ~~For an individual millage~~

~~rate not levied in 1 of the years, the lowest millage rate is zero.~~

~~A millage used to make the calculation under this subdivision must~~

~~be eligible to be levied against both real property and personal~~

~~property.~~

If the estimated amount of tax increment revenue for the current

year for all property in the municipality that is a tax increment

finance authority is negative, the sum of the subdivision (b)

amounts calculated under this subdivision shall be reduced by that

negative amount.

(d) ~~Adjust~~ For calendar year 2017 calculations only, adjust

the amount calculated under subdivision (c) by the amount required

to reflect ~~the final order of a court or body of competent~~

~~jurisdiction related to~~ changes in prior year taxable values that

affect any prior year calculation under this section and that can

be calculated from taxable values reported under section 151(1) of

the state school aid act of 1979, 1979 PA 94, MCL 388.1751.

(e) For an obligation refinanced after 2012, estimate for the

term of the obligation:

(i) The cumulative school district operating tax and state

education tax that would have been captured to repay the obligation

had the obligation not been refinanced.

(ii) The cumulative amount calculated under subdivision (c),

as adjusted by subdivision (d), for school district operating tax

and state education tax for the obligation had it not been

refinanced.

(f) Once the amount included in subdivision (c), as adjusted

by subdivision (d), for the current and prior years for school

operating tax and state education tax for the refinanced obligation

equals the amount estimated in subdivision (e)(ii), subtract from

the amount calculated under subdivision (c), as adjusted by

subdivision (d), the amount calculated under subdivision (c), as

adjusted by subdivision (d), for school district operating tax and

state education tax for the refinanced obligation.

(g) Once the amount of school district operating tax and state

education tax captured for the current and prior years to pay the

refinanced obligation equals the amount estimated under subdivision

(e)(i), subtract from the amount calculated in subdivision (c), as

adjusted by subdivision (d), the amount of school operating tax and

state education tax captured to repay the refinanced obligation.

(3) Not later than June 15, 2016, and each June 15 thereafter,

each municipality that is a tax increment finance authority shall

report to the department the results of the calculations under

subsection (2) for each tax increment financing plan.

Sec. 17. (1) The legislature shall appropriate funds for all

of the following purposes:

(a) For fiscal year 2014-2015 and fiscal year 2015-2016, to

the authority, an amount equal to all debt loss for municipalities

that are not a local school district, intermediate school district,

or tax increment finance authority, an amount equal to all school

debt loss for municipalities that are a local school district or

intermediate school district, and an amount equal to all tax

increment small taxpayer loss for municipalities that are a tax

increment finance authority. Funds appropriated under this

subdivision for fiscal year 2015-2016 may be used to pay a

corrected tax increment small taxpayer exemption loss for 2014 if a

tax increment finance authority submits before June 1, 2016 a

correction to a report that was filed under section 16a before

October 1, 2014.

(b) For fiscal year 2014-2015 through fiscal year 2018-2019 an

amount equal to the necessary expenses incurred by the department

in implementing this act.

thereafter, an amount equal to the necessary expenses incurred by

the authority and the department in implementing this act.

(2) In fiscal year 2014-2015 and fiscal year 2015-2016, the

authority shall distribute to municipalities those funds

appropriated under subsection (1)(a). However, in fiscal year 2014-

2015, if the authority is not able to make the distribution under

this subsection, the department shall make the distribution under

this subsection on behalf of the authority.

(3) For calendar years 2014 and 2015, the authority shall

distribute local community stabilization share revenue to each city

in an amount determined by multiplying the sum of the local

community stabilization share revenue for the calendar years and

the amounts calculated under section 14(3)(e) and (f) by a

fraction, the numerator of which is that city's amount calculated

under section 14(3)(d) and the denominator of which is the total

amount calculated under section 14(3)(d), and subtracting from the

result each city's amounts calculated under section 14(3)(e) and

(f).

(4) Beginning for calendar year 2016, the authority shall

distribute local community stabilization share revenue as follows

in the following order of priority:

(a) The authority shall distribute to each municipality an

amount equal to all of the following:

(i) 100% of that municipality's school debt loss in the

current year as calculated under section 13(4) and 100% of its

amount calculated under section 15.

(ii) 100% of that municipality's amount calculated under

section 16.

(iii) 100% of that municipality's school operating loss not

reimbursed by the school aid fund in the current year, calculated

by multiplying the operating millage rate reported under section

13(4) or the operating millage rate calculated under section 13(5)

by the local school district's personal property exemption loss for

the personal property subject to the respective millage reimbursed

under this subparagraph.

(iv) 100% of the amount calculated in section 14(2). ~~However,~~

~~the amount distributed to a municipality under this subparagraph~~

~~shall not exceed the amount calculated in section 14(1)(d). All~~ For

calendar years 2016 and 2017 only, however, the amount distributed

to a municipality under this subparagraph shall not exceed the

amount calculated in section 14(1)(d). For all calendar years, all

distributions under this subparagraph shall be used to fund

essential services.

(v) For a municipality that is a tax increment finance

authority, 100% of its amount calculated under section 16a(2), as

confirmed or adjusted by the department. For calculations made

under section 16a(2), as modified by section 16b(2), in calendar

years 2016 and 2017 only, amounts claimed for increased captured

value shall be included as claimed.

(vi) 100% of that municipality's amount calculated under

section 14(4).

(b) Beginning for calendar year ~~2019,~~ 2021, after the

distributions under subdivision (a), and subject to subparagraph

(viii), the authority shall distribute ~~5% of the remaining balance~~

~~of the local community stabilization share fund~~ an amount equal to

15% of the total qualified loss for the current calendar year to

each municipality that is not a local school district, intermediate

school district, or tax increment finance authority in an amount

determined as follows:

(i) Calculate the total acquisition cost of all eligible

personal property in the municipality.

(ii) Multiply the result of the calculation in subparagraph

(i) by ~~the sum of the lowest rate of~~ each individual millage levied

by the municipality ~~in the period between 2012 and the year~~

~~immediately preceding the current year~~ as calculated under section

13(5) that is not used to calculate a distribution under

subdivision (a)(i) to (iv). ~~For an individual millage rate not~~

~~levied in 1 of the years, the lowest millage rate is zero. A~~

~~millage used to make the calculation under this subparagraph must~~

~~be eligible to be levied against both real property and personal~~

~~property.~~

(iii) Divide the sum of the amounts calculated under

subparagraph (ii) for all municipalities subject to the calculation

by total qualified loss.

(iv) Multiply the result of the calculation in subparagraph

(iii) by the difference between the amount calculated under section

16a(2) for captured taxes for each individual millage levied by the

municipality not including taxes attributable to increased captured

value and the subtraction amounts calculated under section

14(2)(d), (2)(f), and (4)(d) for that millage.

(v) Subtract from the amount calculated under subparagraph

(ii) the amount calculated under subparagraph (iv) for the

individual millage levied.

(vi) Divide the result of the calculation in subparagraph (v)

by the sum of the calculation under subparagraph (v) for all

millages for all municipalities.

(vii) Multiply the result of the calculation in subparagraph

(vi) by the amount to be distributed under this subdivision.

(viii) For calendar year ~~2020,~~ 2022, and each calendar year

thereafter, the percentage amount described in this subdivision

shall be increased an additional 5% each year, not to exceed 100%.

distributions in ~~subdivisions~~ subdivision (a), ~~and (b),~~ the

authority shall distribute the remaining balance of the local

community stabilization share fund for a calendar year to each

municipality in an amount determined by multiplying the remaining

balance by a fraction, the numerator of which is that

municipality's qualified loss and the denominator of which is the

total qualified loss. Beginning for calendar year 2018, after the

distributions in subdivisions (a) and (b), the authority shall

distribute local community stabilization share revenue under this

subdivision to each municipality in an amount determined by

multiplying total qualified loss minus the total amount distributed

in subdivision (b) for a calendar year by a fraction, the numerator

of which is that municipality's qualified loss and the denominator

of which is the total qualified loss.

(d) After the distributions under subdivisions (a) to (c),

beginning for calendar year 2018, the department shall adjust the

amounts calculated under subdivisions (b) and (c) for a

municipality by the amount of any overpayment to that municipality

under those subdivisions for that calendar year and the authority

shall distribute to a municipality the amount of any underpayment

calculated under subsection (5) for calendar years after 2016.

(e) Except as otherwise provided in this subdivision, after

the distributions under subdivisions (a) to (d), the authority

shall distribute the remaining balance of the local community

stabilization share fund for the calendar year to each municipality

that is not a local school district, intermediate school district,

or tax increment finance authority in an amount determined by

multiplying the remaining balance by a fraction, the numerator of

which is the sum of that municipality's amount received under

subdivisions (b), (c), and (d), only to the extent that the

distribution under subdivision (d) is for an underpayment of the

current calendar year's subdivisions (b) or (c) amount, and the

adjustment under subdivision (d), and the denominator of which is

the sum of the total amount distributed under subdivisions (b),

(c), and (d), only to the extent that the distribution under

subdivision (d) is for an underpayment of the current calendar

year's subdivisions (b) or (c) amount, and the total adjustments

under subdivision (d). For a municipality that, in total, was

overpaid under subdivisions (a), (b), and (c), the distribution

under this subdivision shall be reduced by any positive amount

determined by subtracting the corrected amounts under subdivisions

(a) to (c) for that municipality from the distributed amounts under

subdivisions (a) to (c) for that municipality and subtracting

$10,000.00. If the resulting distribution amount is negative, the

municipality has been overpaid for the year by the amount of the

negative balance. The municipality shall pay to the authority the

amount of the overpayment in 3 equal annual payments, due by

September 20 1 year following notice of the overpayment and by

September 20 of the subsequent 2 years. A municipality may pay the

amount of the overpayment at any time during the 3-year period. If

a municipality fails to repay the amount of the overpayment as

provided in this subdivision, the authority shall add interest to

the entire amount of the original overpayment from the date of

notice of the overpayment and may reduce subsequent distributions

to the municipality under this section to recover the outstanding

balance of the overpayment and interest. Interest added under this

subdivision shall be at the rate determined under section 23 of

1941 PA 122, MCL 205.23. Any overpayment amounts repaid to the

authority under this subdivision by September 30 of each year shall

be added to the local community stabilization share revenue

available for distribution for the calendar year. If reductions to

distributions calculated under this section result in the authority

having a year-end balance of local community stabilization share

revenue, that revenue shall be added to the local community

stabilization share revenue available for distribution for the

subsequent calendar year.

(5) The department and authority shall administer overpayments

and underpayments as follows:

(a) For calendar years before 2016, if a municipality received

an overpayment under this section due to an error in reporting or

calculation, the authority may reduce a subsequent payment to the

municipality or bill the municipality to recover the overpayment.

(b) Before November 7, 2017, the department shall recalculate

2016 payments to correct any errors in reporting under section

13(3) or (4) and any calculation errors made by the department, and

adjust the 2017 payment to each municipality for any change in its

2016 payment.

section 13(3) or (4) in calendar year 2017 or 2018, any calculation

errors made by the department in calendar year 2017 or 2018, or any

prior year error adjustment used in the calculation of the calendar

year 2017 distributions, that resulted in an underpayment or

overpayment under this section to a municipality for the prior

calendar year or current calendar year, the department shall

calculate the amount of underpayment or overpayment. For each

municipality, the department shall add together the calendar year

2016 and calendar year 2017 underpayment and overpayment amounts.

If a municipality has a net underpayment for calendar years 2016

and 2017, the amount of the net underpayment shall be added to the

calendar year 2018 underpayment or overpayment amount for that

municipality. If a municipality has a net overpayment for calendar

years 2016 and 2017, the amount of the net overpayment shall be

excused by the authority and shall not be added to the calendar

year 2018 underpayment or overpayment amount for that municipality.

The following apply to determining underpayment or overpayment

amounts:

(i) For calendar year 2016, the underpayment or overpayment of

a municipality's qualified loss shall be calculated by multiplying

the municipality's qualified loss by 261.3820%.

(ii) For calendar year 2017, the underpayment or overpayment

of a municipality's qualified loss shall be calculated by

multiplying the municipality's qualified loss by 292.4677%.

(d) Beginning for calendar year 2019, for any errors in

reporting under section 13(3) or (4), and for any calculation

errors made by the department, that resulted in an underpayment or

overpayment under this section to a municipality for the current

calendar year, the department shall calculate the amount of

underpayment or overpayment. A calculation made under this

subdivision shall not recalculate a prior year payment.

(e) Except as provided in subsection (6), any underpayment

shall be paid to the municipality as provided in subsection (4)(d).

any underpayment amount determined by the department to be the

fault of that municipality, by either the municipality reporting

inaccurate information or filing information after the reporting

due dates, shall not be included in any payment made under

subsection (4)(d) or (6).

(f) For any overpayment for which the state treasurer

determines that the municipality was at fault and acted in bad

faith, the department may calculate the amount of the overpayment

for all years to which the bad faith applied without any adjustment

and the municipality shall immediately repay the amount of the

overpayment and interest to the authority within 30 days following

notice of the overpayment. If a municipality fails to repay the

amount of the overpayment and interest to the authority, the

authority shall reduce subsequent payments to the municipality

under this section to recover the outstanding balance of the

overpayment and interest. Interest added under this subsection

shall be at the rate determined under section 23 of 1941 PA 122,

MCL 205.23. Any overpayment amounts repaid to the authority under

this subsection by September 30 of each year shall be added to the

local community stabilization share revenue available for

distribution for the calendar year. Any reduction of subsequent

payments due to municipalities failing to repay the amount of the

overpayment and interest shall be added to the local community

stabilization share revenue available for distribution for the

subsequent calendar year.

(6) If a municipality received an underpayment under this

section of $500,000.00 or more for calendar year 2017 due to an

error in reporting under section 13(3) or (4), or a calculation

error made by the department, including a prior year error

adjustment used in the calculation of the calendar year 2017

distributions, the municipality may notify the department of any

errors identified by providing substantiating documentation to

support an adjustment to the payment amount by August 1, 2018. Upon

the department's review of the substantiating documentation and

verification of the errors, the department shall calculate an

underpayment amount in accordance with subsection (5)(c). The

underpayment amount shall be calculated using the appropriate

proration factor provided for under subsection (5)(c). The

department shall determine if the substantiating documentation is

sufficient. The department shall notify the authority to make an

advance 2018 payment to the municipality for the amount of the 2017

underpayment. The advance payment shall be deducted from the

municipality's payment for calendar year 2018 that includes the

distribution under subsection (4)(d).

(7) For payments received beginning October 20, 2018, a

municipality shall do all of the following:

(a) Allocate payments received, up to 100% reimbursement,

under this section based on the portion of the municipality's

payment attributable to each millage levied by the municipality.

The portion of the payment allocated to each millage other than the

general operating millage shall be considered restricted and

recorded by the municipality in the same manner as the millage

levied. As used in this subsection, "100% reimbursement" means the

amounts received under subsection (4)(a), (b), (c), and (d), only

to the extent that the distribution under subsection (4)(d) is for

an underpayment of the current calendar year's subsection (4)(a),

(b), or (c) amount.

(b) For millage levied by a county under section 20b of 1909

PA 283, MCL 224.20b, the governing bodies of the cities and

villages in the county and the board of county road commissioners

shall agree to a formula that allocates a portion of the payments

under this section to each city and village based on the city and

village share of the losses and acquisition cost used to calculate

the payment to the county described in this subdivision and each

city's and village's portion of that share. The formula once

established will be in effect until the effective date of any

subsequent agreement. If the governing bodies of the cities and

villages and the board of county road commissioners described in

this subdivision do not agree on a formula by March 31 following

the receipt of the subsection (8)(b) payment, the department may

prescribe a formula for allocating the payments under this section.

participating in an intergovernmental conditional transfer by

contract under 1984 PA 425, MCL 124.21 to 124.30, or any other

interlocal agreement that provides for a millage-based sharing of

revenue, shall be allocated between the parties based on the

proportionate share of the payment as it is attributable to the

area subject to the agreement.

(8) ~~(5)~~ The authority shall make the payments required by

subsection (3) not later than ~~May~~ June 20, 2016, payments required

by subsection (6) not later than October 20, 2018, and payments

required by subsection (4) not later than on the following dates:

(a) ~~For~~ Except as provided in subdivision (d), for county

allocated millage, November 20, 2017, and thereafter ~~September~~

October 20 of the year the millage is levied.

(b) ~~For~~ Except as provided in subdivision (d), for county

extra-voted millage, township millage, and other millages levied

100% in December of a year, February 20 of the following year.

millages, November 20, 2017, and thereafter October 20 of the year

the millage is levied.

(d) Payment under subsection (4)(d) and (e) shall be made on

May 20 of the year following the calendar year for which the

payments are calculated.

(9) ~~(6)~~ If the authority has insufficient funds to make the

payments on the dates required in subsection ~~(5),~~ (8), the

department shall advance to the authority the amount necessary for

the authority to make the required payments. The authority shall

repay the advance to the department from the local community

stabilization share.

(10) ~~(7)~~ For each fiscal year from fiscal year 2015-2016

through fiscal year 2018-2019, the authority may use up to

$300,000.00 of the local community stabilization share revenue for

purposes consistent with implementing and administering this act.

(11) ~~(8)~~ The authority shall distribute local community

stabilization share revenue under this section as follows:

(a) From fiscal year 2015-2016 local community stabilization

share revenue, $19,200,000.00 for calendar years 2014 and 2015 and

$76,900,000.00 for calendar year 2016.

(b) From fiscal year 2016-2017 local community stabilization

share revenue, $297,400,000.00 for calendar year 2016 and

$83,200,000.00 for calendar year 2017.

share revenue, $321,500,000.00 for calendar year 2017 and

$89,000,000.00 for calendar year 2018.

(d) From fiscal year 2018-2019 local community stabilization

share revenue, $341,800,000.00 for calendar year 2018 and

$95,900,000.00 for calendar year 2019.

(e) From fiscal year 2019-2020 local community stabilization

share revenue, $364,500,000.00 for calendar year 2019 and

$101,400,000.00 for calendar year 2020.

(f) From fiscal year 2020-2021 local community stabilization

share revenue, $383,500,000.00 for calendar year 2020 and

$108,000,000.00 for calendar year 2021.

(g) From fiscal year 2021-2022 local community stabilization

share revenue, $405,700,000.00 for calendar year 2021 and

$115,600,000.00 for calendar year 2022.

(h) From fiscal year 2022-2023 local community stabilization

share revenue, $428,300,000.00 for calendar year 2022 and

$119,700,000.00 for calendar year 2023.

(i) From fiscal year 2023-2024 local community stabilization

share revenue, $438,900,000.00 for calendar year 2023 and

$122,800,000.00 for calendar year 2024.

(j) From fiscal year 2024-2025 local community stabilization

share revenue, $445,800,000.00 for calendar year 2024 and

$124,000,000.00 for calendar year 2025.

(k) From fiscal year 2025-2026 local community stabilization

share revenue, $447,100,000.00 for calendar year 2025 and

$124,300,000.00 for calendar year 2026.

(l) From fiscal year 2026-2027 local community stabilization

share revenue, $447,700,000.00 for calendar year 2026 and

$124,500,000.00 for calendar year 2027.

(m) From fiscal year 2027-2028 local community stabilization

share revenue, $448,000,000.00 for calendar year 2027 and

$124,600,000.00 for calendar year 2028.

(n) From the local community stabilization share revenue for

fiscal year 2028-2029 and each fiscal year thereafter, the

authority shall increase the prior fiscal year's 2 distribution

amounts under this subsection by the personal property growth

factor, the first amount for the calendar year in which the fiscal

year begins and the second amount for the calendar year in which

the fiscal year ends. As used in this subdivision, "personal

property growth factor" means that term as defined in section 2c of

the use tax act, 1937 PA 94, MCL 205.92c.

Sec. 18. (1) Beginning in fiscal year 2015-2016, and each

fiscal year thereafter, the department shall determine the amount

of the distributions under this act.

(2) Each municipality shall submit to the department

sufficient information for the department to make its calculations

under this act, as determined by the department.

(3) The department shall annually make the distribution

calculations and the commercial personal property and industrial

personal property taxable values available on the internet.

(4) For calendar year 2018, each municipality may review the

prior year distribution calculations that the department posted on

the internet to determine if there are any errors in reporting

under section 13(4) or any calculation errors made by the

department. For calendar year 2018 and subsequent calendar years,

each municipality may review the current year distribution

calculations that the department posted on the internet to

determine if there are any errors in reporting under section 13(4)

or any calculation errors made by the department. A municipality

may notify the department of any errors identified by providing

substantiating documentation to support an adjustment to the

payment amount by March 31 of the year following the calendar year

for which the payments are calculated, except that for errors

identified in calculations under section 13(5) for the current

calendar year, a municipality shall notify the department by August

1 of the calendar year for which the payments are calculated. Upon

the department's review of the substantiating documentation and

verification of the errors, the department shall calculate an

underpayment or overpayment amount in accordance with section

17(5). The department shall determine if the substantiating

documentation is sufficient.

(5) Each municipality may review the annual commercial

personal property and industrial personal property taxable values

posted by the department on the internet to determine if there are

any errors in reporting under section 13(3) or any calculation

errors made by the department. A municipality may notify the

department of any errors identified by providing substantiating

documentation to support an adjustment to the payment amount, as

described in subdivisions (a) to (e). Upon the department's review

of the substantiating documentation and verification of the errors,

the department shall calculate an underpayment or overpayment

amount in accordance with section 17(5). The department shall

determine if the substantiating documentation is sufficient. Error

notifications under this subsection are subject to the following,

as applicable:

(a) For the 2013, 2014, and 2015 commercial personal property

and industrial personal property taxable values, as reported by the

county equalization director in calendar year 2015 under section

13(3), municipalities must report any inaccurate commercial

personal property and industrial personal property taxable values

to the county equalization director by August 1, 2018, except as

provided in section 17(6). County equalization directors shall

notify the department by August 13, 2018, of any corrected 2013,

2014, and 2015 commercial personal property and industrial personal

property taxable values, by providing substantiating documentation

to support the corrected values.

(b) For the 2013 and 2016 commercial personal property and

industrial personal property taxable values, as reported by the

county equalization director in calendar year 2016 under section

13(3), municipalities must report any inaccurate commercial

personal property and industrial personal property taxable values

to the county equalization director by February 28, 2019, except as

provided in section 17(6). County equalization directors shall

notify the department by March 29, 2019, of any corrected 2013 and

2016 commercial personal property and industrial personal property

taxable values by providing substantiating documentation to support

the corrected values.

property and industrial personal property taxable values, as

reported on July 10, 2017, under section 151(1) of the state school

aid act of 1979, 1979 PA 94, MCL 388.1751, municipalities must

report any inaccurate commercial personal property and industrial

personal property taxable values to the county treasurer by

February 28, 2019, except as provided in section 17(6). County

treasurers shall notify the department by March 29, 2019, of any

corrected 2013, 2014, 2015, and 2016 commercial personal property

and industrial personal property taxable values by providing

substantiating documentation to support the corrected values. For

purposes of this subdivision, the corrected 2013, 2014, 2015, and

2016 commercial personal property and industrial personal property

taxable values shall be the current taxable values on July 10,

2017.

(d) For the 2013 and 2017 commercial personal property and

industrial personal property taxable values, as reported by the

county equalization director in calendar year 2017 under section

13(3), municipalities must report any inaccurate commercial

personal property and industrial personal property taxable values

to the county equalization director by February 28, 2019, except as

provided in section 17(6). County equalization directors shall

notify the department by March 29, 2019, of any corrected 2013 and

2017 commercial personal property and industrial personal property

taxable values by providing substantiating documentation to support

the corrected values.

(e) For 2018 and subsequent years' commercial personal

property and industrial personal property taxable values, as

reported by the county equalization director by May 31 of each year

under section 13(3), municipalities must report any inaccurate

commercial personal property and industrial personal property

taxable values for the current year to the county equalization

director by February 28 of the following year. County equalization

directors shall notify the department by March 31 of each year of

any corrected prior year commercial personal property and

industrial personal property taxable values, by providing

substantiating documentation to support the corrected values.

Sec. 21. (1) If a municipality does not adjust its debt

millage rate to reflect reimbursement for the small taxpayer

exemption loss under section 17(1)(a), the reimbursement under

section 17(1)(a) shall be reduced by the excess debt taxes levied.

(2) A municipality shall use the amount received under section

17(4) for debt millage to pay debt. If a payment under section

17(4) for debt millage is not used to pay debt, the amount not used

to pay debt shall be deducted from a subsequent payment under

section 17(4), unless all debts have been repaid, in which case the

amount received under section 17(4) for debt millage may be used by

the municipality in any manner and shall not be deducted from a