The bill amends the 2018 PA 57, known as the "Recodified Tax Increment Financing Act," specifically section 301, by introducing new definitions and clarifications for key terms such as "advance," "assessed value," "authority," and "development area." It specifies that evidence of intent to repay an advance must include an executed agreement and provisions in a tax increment financing plan. Additionally, the term "governing body" is replaced with "board that supervises and controls an authority," and the definition of "initial assessed value" is refined for clarity. The bill also outlines conditions for municipalities or authorities to issue obligations related to financing public facilities or projects, establishing limits based on tax levies during various fiscal years and expanding the definition of "public facility" to encompass a wider range of structures.

Moreover, the bill clarifies definitions and calculations related to tax increment financing (TIF), specifying that tax increment revenues will include ad valorem property taxes and certain local taxes based on captured assessed value, with exclusions noted. It emphasizes the need for separate calculations for tax increment revenues for the state, local school districts, and intermediate school districts. The bill also modifies existing legal language for clarity by replacing terms like "upon" with "on" and "shall" with "must," and introduces new definitions for "transit-oriented development" and "transit-oriented facility," focusing on infrastructure improvements near transit stations. Overall, these amendments aim to enhance the clarity and functionality of the TIF framework in Michigan.

Statutes affected:
Senate Introduced Bill: 125.4301