Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill changes how money is handled in a fund that reimburses Michigan cities for property tax revenue lost due to the small business property tax exemption. Currently, any unused funds in the fund automatically go to the state’s general fund. This bill requires that any remaining funds at the end of the fiscal year also lapse to the general fund, ensuring that money is only used to compensate cities for actual revenue losses.
Key provisions
- Creates a local government reimbursement fund.
- Directs funds to the fund from use tax revenue.
- Requires unused funds to lapse to the general fund.
- The Department of Treasury administers the fund.
- The Department of Treasury will compensate municipalities for lost property tax revenue due to the small business exemption.
- Payments are prorated if the fund is insufficient to cover all losses.
- Defines ‘Fund’ and ‘Municipality’ for clarity.
Who is affected
- Michigan cities and townships
- Small businesses claiming property tax exemptions
- The State Treasury
- The Department of Treasury
Notable changes
- Previously, unused funds in the reimbursement fund automatically transferred to the general fund.
- Now, any remaining funds at the end of the fiscal year will also transfer to the general fund.
Bill text
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- Senate Introduced Bill
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