SB-0380, As Passed Senate, May 24, 2017
May 16, 2017, Introduced by Senator HILDENBRAND and referred to the Committee on Finance.
A bill to amend 2014 PA 86, entitled
"Local community stabilization authority act,"
by amending sections 14, 15, 16, and 17 (MCL 123.1354, 123.1355,
123.1356, and 123.1357), sections 14 and 17 as amended by 2016 PA
124.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
14. (1) Not later than November 7, 2016, 2017, and each
September 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).
(c) Adjust 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 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 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, 2016, 2017, and each September
7 thereafter, for each municipality that is a county, township,
village, city, or 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.
(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 calculated under section 13(5)
that are dedicated solely for the cost of essential services levied
on industrial personal property and commercial personal property. 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.
(3) Not later than May 10, 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.
(c) Multiply the 2015 small taxpayer exemption loss if greater
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 September 7, 2016, November 7, 2017, and
each September 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).
(c) Adjust 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 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 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
under this subdivision shall only be made to the extent that the
adjustment 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 August 15, 2016, November 7, 2017, and
each August 15 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.
(c) Adjust 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 section.
(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 August 15, 2016, November 7, 2017, and
each August 15 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).
(c) Adjust 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 section.
(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. 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.
(c) Beginning in fiscal year 2019-2020 and each fiscal year
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 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.
(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
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).
(vi) 100% of that municipality's amount calculated under
section 14(4).
(b) Beginning for calendar year 2019, 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 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 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 amount calculated under section 16a(2) for captured
taxes levied by the municipality not including taxes attributable
to increased captured value.
(v) Subtract from the amount calculated under subparagraph
(ii) the amount calculated under subparagraph (iv).
(vi) Divide the result of the calculation in subparagraph (v)
by the sum of the calculation under subparagraph (v) 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, and each calendar year
thereafter, the percentage amount described in this subdivision
shall be increased an additional 5% each year, not to exceed 100%.
(c) After the distributions in subdivisions (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.
(5) The authority shall make the payments required by
subsection (3) not later than May 20, 2016, and payments required
by subsection (4) not later than on the following dates:
(a)
For county allocated millage, November 20, 2016 2017, and
thereafter September 20 of the year the millage is levied.
(b) For county extra-voted millage, township millage, and
other millages levied 100% in December of a year, February 20 of
the following year.
(c)
For other millages, November 20, 2016 2017, and thereafter
October 20 of the year the millage is levied.
(6) If the authority has insufficient funds to make the
payments on the dates required in subsection (5), 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.
(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.
(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.
(c) From fiscal year 2017-2018 local community stabilization
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.