The bill amends the 2018 PA 57, known as the "Recodified Tax Increment Financing Act," specifically section 201, by introducing new definitions and clarifications for terms such as "advance," "authority," "business district," and "catalyst development project." The definition of "advance" now explicitly requires evidence of intent to repay to include an executed agreement, while the term "catalyst development project" is refined to necessitate a minimum capital investment of $300,000,000. Additionally, the bill clarifies how the initial assessed value is determined and includes provisions for municipalities with specific population criteria regarding the extension of expired plans. It also makes several deletions and insertions to enhance clarity, such as replacing "may include" with "includes" and modifying "pursuant to" to "under."

Moreover, the bill proposes amendments related to the issuance and management of qualified refunding obligations, extending the duration of development programs to one year after their final maturity date, allowing payments through 2025 at legally permissible interest rates. It clarifies that qualified refunding obligations are only valid if the repayment revenues do not exceed $750,000 and exempts these obligations from certain requirements of the revised municipal finance act. The bill introduces definitions for "qualified township," "specific local tax," and "tax increment revenues," specifying that tax increment revenues must be calculated separately for state and local school district levies. Overall, these amendments aim to enhance the efficiency and clarity of tax increment financing mechanisms for municipalities in Michigan.

Statutes affected:
Senate Introduced Bill: 125.4201