The bill amends Michigan's existing laws regarding tax increment finance authorities, focusing on clarifying key definitions and terms such as "advance," "assessed value," "authority," "business district," and introducing the new term "catalyst development project." This new designation pertains to significant investment projects in municipalities with populations exceeding 600,000, requiring a minimum capital investment of $300 million. The bill also outlines the criteria for designating downtown districts and determining initial and captured assessed values, thereby enhancing the clarity and functionality of tax increment financing mechanisms.

Furthermore, the bill specifies the obligations of municipalities and authorities concerning tax increment financing, including the management of advances and the criteria for "eligible obligations." It defines "specific local tax" and "state fiscal year," and details the calculation of assessed values for properties subject to these taxes. Tax increment revenues are defined to include ad valorem property taxes and specific local taxes, with exclusions for certain taxes like those for public libraries. The bill allows these revenues to fund specific purposes, including building demolitions and costs associated with catalyst development projects, with a cap of $8,000,000 and requiring state treasurer approval for related obligations. The enactment of this bill is contingent upon the passage of House Bill No. 5455 from the 103rd Legislature.

Statutes affected:
Substitute (H-1): 125.4201
Senate Introduced Bill: 125.4201
As Passed by the Senate: 125.4201
As Passed by the House: 125.4201
Senate Concurred Bill: 125.4201
Public Act: 125.4201
Senate Enrolled Bill: 125.4201