The bill amends the Recodified Tax Increment Financing Act (2018 PA 57) by updating definitions and clarifying terms related to tax increment financing. Key changes include a revised definition of "advance," which now requires evidence of intent to repay through an executed agreement or provisions in a tax increment financing plan. The term "board" is redefined to specify its supervisory role over an authority, while the definition of "development area citizens council" is updated to reflect its establishment under a specific section. Additionally, a new category of "other protected obligation" is introduced, encompassing obligations incurred for financing public facilities or projects in municipalities meeting certain population criteria.

The bill further modifies the definitions of "initial assessed value" and "specific local tax," ensuring clarity in their determination and calculation. It specifies that the initial assessed value must treat properties exempt from taxation as zero and outlines the calculation method for properties subject to specific local taxes. The duration of certain obligations and development plans is also extended, providing more flexibility for financing public projects. Moreover, the bill clarifies that tax increment revenues include ad valorem property taxes and specific local taxes based on captured assessed values, while introducing exclusions for certain taxes related to public library purposes approved after December 31, 2016. New definitions for "transit-oriented development" and "transit-oriented facility" are included to emphasize infrastructure improvements that support transit ridership near transit stations, enhancing the overall effectiveness and clarity of tax increment financing mechanisms in Michigan.

Statutes affected:
Senate Introduced Bill: 125.4301