Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill modifies and expands the Michigan Tax Increment Financing Act. It clarifies definitions related to key terms like ‘advance,’ ‘captured assessed value,’ ‘other protected obligation,’ and ‘tax increment revenues.’ Specifically, it adjusts the calculation of ‘captured assessed value’ and outlines specific rules for receiving tax increment revenues to cover eligible obligations, particularly those incurred before 2005, with tiered amounts based on the year of tax levy. The bill also clarifies the circumstances under which municipalities can receive tax increment revenues to cover ongoing management contracts and professional services.
Key provisions
- Defines ‘other protected obligation’ to include specific types of bonds and agreements.
- Adjusts the calculation of ‘captured assessed value’ and specifies the method for its determination.
- Establishes tiered revenue limits for municipalities to receive tax increment revenues to cover eligible obligations based on the year of tax levy.
- Clarifies the definition of ‘eligible advance’ and outlines specific revenue limits for receiving tax increment revenues to cover those advances.
- Defines ‘tax increment revenues’ and details how they are calculated, including provisions for school district and state education tax distributions.
- Specifies that ‘specific local tax’ includes certain tax acts and authorities.
- Defines ‘transit-oriented development’ and ‘transit-oriented facility’ for the purpose of tax increment financing.
- Provides specific rules for ongoing management contracts and professional services agreements to be paid for with tax increment revenues.
Bill text
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