SENATE BILL NO. 243
March 23, 2023, Introduced by Senators SANTANA, CHANG and GEISS and referred to the
Committee on Finance, Insurance, and Consumer Protection.
A bill to amend 2018 PA 57, entitled
"Recodified tax increment financing act,"
by amending sections 203, 303, 404, 618, 715, and 814 (MCL
125.4203, 125.4303, 125.4404, 125.4618, 125.4715, and 125.4814).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 203. (1) When If the governing body of a municipality
2 determines that it is necessary for the best interests of the
3 public to halt property value deterioration and increase property
4 tax valuation where possible in its business district, to eliminate
5 the causes of that deterioration, and to promote economic growth,
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1 the governing body may, by resolution, declare its intention to
2 create and provide for the operation of an authority.
3 (2) In the resolution of intent, the governing body shall set
4 a date for the holding of a public hearing on the adoption of a
5 proposed ordinance creating the authority and designating the
6 boundaries of the downtown district. Notice of the public hearing
7 shall must be published twice in a newspaper of general circulation
8 in the municipality, not less than 20 or more than 40 days before
9 the date of the hearing. Not less than 20 days before the hearing,
10 the governing body proposing to create the authority shall also
11 mail notice of the hearing to the property taxpayers of record in
12 the proposed district and for a public hearing to be held after
13 February 15, 1994 to the governing body of each taxing jurisdiction
14 levying taxes that would be subject to capture if the authority is
15 established and a tax increment financing plan is approved.
16 Beginning June 1, 2005, the notice of hearing within the time frame
17 described in this subsection shall must be mailed by certified mail
18 to the governing body of each taxing jurisdiction levying taxes
19 that would be subject to capture if the authority is established
20 and a tax increment financing plan is approved. Failure of a
21 property taxpayer to receive the notice shall does not invalidate
22 these proceedings. Notice of the hearing shall must be posted in at
23 least 20 conspicuous and public places in the proposed downtown
24 district not less than 20 days before the hearing. The notice shall
25 must state the date, time, and place of the hearing, and shall must
26 describe the boundaries of the proposed downtown district. A
27 citizen, taxpayer, or property owner of the municipality or an
28 official from a taxing jurisdiction with millage that would be
29 subject to capture has the right to be heard in regard to the
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1 establishment of the authority and the boundaries of the proposed
2 downtown district. The governing body of the municipality shall not
3 incorporate land into the downtown district not included in the
4 description contained in the notice of public hearing, but it may
5 eliminate described lands from the downtown district in the final
6 determination of the boundaries.
7 (3) Not more than 60 days after a public hearing held after
8 February 15, 1994, the governing body of a taxing jurisdiction
9 levying ad valorem property taxes that would otherwise be subject
10 to capture may exempt its taxes from capture by adopting a
11 resolution to that effect and filing a copy with the clerk of the
12 municipality proposing to create the authority. The resolution
13 takes effect when filed with that clerk and remains effective until
14 a copy of a resolution rescinding that resolution is filed with
15 that clerk. If a separate millage for public library purposes was
16 levied before January 1, 2017, and all obligations and other
17 protected obligations of the authority are paid, then the levy is
18 exempt from capture under this part, unless the library board or
19 commission allows all or a portion of its taxes levied to be
20 included as tax increment revenues and subject to capture under
21 this part under the terms of a written agreement between the
22 library board or commission and the authority. The written
23 agreement shall must be filed with the clerk of the municipality.
24 However, if a separate millage for public library purposes was
25 levied before January 1, 2017, and the authority alters or amends
26 the boundaries of a downtown district or extends the duration of
27 the existing finance plan, then the library board or commission
28 may, not later than 60 days after a public hearing is held under
29 this subsection, exempt all or a portion of its taxes from capture
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1 by adopting a resolution to that effect and filing a copy with the
2 clerk of the municipality that created the authority. For ad
3 valorem property taxes or specific local taxes attributable to
4 those ad valorem property taxes levied for a separate millage for
5 public library purposes approved by the electors after December 31,
6 2016, a library board or commission may allow all or a portion of
7 its taxes levied to be included as tax increment revenues and
8 subject to capture under this part under the terms of a written
9 agreement between the library board or commission and the
10 authority. The written agreement shall must be filed with the clerk
11 of the municipality. However, if the library was created under
12 section 1 or 10a of 1877 PA 164, MCL 397.201 and 397.210a, or
13 established under 1869 LA 233, then any action of the library board
14 or commission under this subsection shall have the concurrence of
15 the chief executive officer of the city that created the library to
16 be effective, and, if the action of the library board or commission
17 involves any bond issued by this state or a state agency, the
18 concurrence of the state treasurer.
19 (4) Not less than 60 days after the public hearing, if the
20 governing body of the municipality intends to proceed with the
21 establishment of the authority, it shall adopt, by majority vote of
22 its members, an ordinance establishing the authority and
23 designating the boundaries of the downtown district within which
24 the authority shall may exercise its powers. The adoption of the
25 ordinance is subject to any applicable statutory or charter
26 provisions in respect to the approval or disapproval by the chief
27 executive or other officer of the municipality and the adoption of
28 an ordinance over his or her that officer's veto. This ordinance
29 shall must be filed with the secretary of state promptly after its
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1 adoption and shall must be published at least once in a newspaper
2 of general circulation in the municipality.
3 (5) The governing body of the municipality may alter or amend
4 the boundaries of the downtown district to include or exclude lands
5 from the downtown district pursuant to the same requirements for
6 adopting the ordinance creating the authority.
7 (6) A municipality that has created an authority may enter
8 into an agreement with an adjoining municipality that has created
9 an authority to jointly operate and administer those authorities
10 under an interlocal agreement under the urban cooperation act of
11 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.
12 (7) A municipality that has created an authority may enter
13 into an agreement with a qualified township to operate its
14 authority in a downtown district in the qualified township under an
15 interlocal agreement under the urban cooperation act of 1967, 1967
16 (Ex Sess) PA 7, MCL 124.501 to 124.512. The interlocal agreement
17 between the municipality and the qualified township shall must
18 provide for, but is not limited to, all of the following:
19 (a) Size and makeup of the board.
20 (b) Determination and modification of downtown district,
21 business district, and development area.
22 (c) Modification of development area and development plan.
23 (d) Issuance and repayment of obligations.
24 (e) Capture of taxes.
25 (f) Notice, hearing, and exemption of taxes from capture
26 provisions described in this section.
27 Sec. 303. (1) If the governing body of a municipality
28 determines that it is in the best interests of the public to halt a
29 decline in property values, increase property tax valuation,
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1 eliminate the causes of the decline in property values, and to
2 promote growth in an area in the municipality, the governing body
3 of that municipality may declare by resolution its intention to
4 create and provide for the operation of an authority.
5 (2) In the resolution of intent, the governing body shall set
6 a date for the holding of a public hearing on the adoption of a
7 proposed resolution creating the authority and designating the
8 boundaries of the authority district. Notice of the public hearing
9 shall must be published twice in a newspaper of general circulation
10 in the municipality, not less than 20 nor or more than 40 days
11 before the date of the hearing. Notice shall must also be mailed to
12 the property taxpayers of record in the proposed authority district
13 not less than 20 days before the hearing. Beginning June 1, 2005,
14 the notice of hearing within the time frame described in this
15 subsection shall must be mailed by certified mail to the governing
16 body of each taxing jurisdiction levying taxes that would be
17 subject to capture if the authority is established and a tax
18 increment financing plan is approved. Failure to receive the notice
19 shall does not invalidate these proceedings. The notice shall must
20 state the date, time, and place of the hearing, and shall must
21 describe the boundaries of the proposed authority district. At that
22 hearing, a citizen, taxpayer, or property owner of the municipality
23 has the right to be heard in regard to the establishment of the
24 authority and the boundaries of the proposed authority district.
25 The governing body of the municipality shall not incorporate land
26 into the authority district not included in the description
27 contained in the notice of public hearing, but it may eliminate
28 described lands from the authority district in the final
29 determination of the boundaries.
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1 (3) After the public hearing, if the governing body intends to
2 proceed with the establishment of the authority, it shall adopt, by
3 majority vote of its members, a resolution establishing the
4 authority and designating the boundaries of the authority district
5 within which the authority shall may exercise its powers. The
6 adoption of the resolution is subject to any applicable statutory
7 or charter provisions with respect to the approval or disapproval
8 by the chief executive or other officer of the municipality and the
9 adoption of a resolution over his or her that officer's veto. This
10 resolution shall must be filed with the secretary of state promptly
11 after its adoption and shall must be published at least once in a
12 newspaper of general circulation in the municipality.
13 (4) The governing body may alter or amend the boundaries of
14 the authority district to include or exclude lands from the
15 authority district in accordance with the same requirements
16 prescribed for adopting the resolution creating the authority.
17 (5) The validity of the proceedings establishing an authority
18 shall be are conclusive unless contested in a court of competent
19 jurisdiction within not later than 60 days after the last of the
20 following takes place:
21 (a) Publication of the resolution as adopted.
22 (b) Filing of the resolution with the secretary of state.
23 (6) If a separate millage for public library purposes was
24 levied before January 1, 2017, and all obligations and other
25 protected obligations of the authority are paid, then the levy is
26 exempt from capture under this part, unless the library board or
27 commission allows all or a portion of its taxes levied to be
28 included as tax increment revenues and subject to capture under
29 this part under the terms of a written agreement between the
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1 library board or commission and the authority. The written
2 agreement shall must be filed with the clerk of the municipality.
3 However, if a separate millage for public library purposes was
4 levied before January 1, 2017, and the authority alters or amends
5 the boundaries of the authority district or extends the duration of
6 the existing finance plan, then the library board or commission
7 may, not later than 60 days after a public hearing is held under
8 this subsection, exempt all or a portion of its taxes from capture
9 by adopting a resolution to that effect and filing a copy with the
10 clerk of the municipality that created the authority. For ad
11 valorem property taxes or specific local taxes attributable to
12 those ad valorem property taxes levied for a separate millage for
13 public library purposes approved by the electors after December 31,
14 2016, a library board or commission may allow all or a portion of
15 its taxes levied to be included as tax increment revenues and
16 subject to capture under this part under the terms of a written
17 agreement between the library board or commission and the
18 authority. The written agreement shall must be filed with the clerk
19 of the municipality. However, if the library was created under
20 section 1 or 10a of 1877 PA 164, MCL 397.201 and 397.210a, or
21 established under 1869 LA 233, then any action of the library board
22 or commission under this subsection shall have the concurrence of
23 the chief executive officer of the city that created the library to
24 be effective.
25 Sec. 404. (1) The governing body of a municipality may declare
26 by resolution adopted by a majority of its members elected and
27 serving its intention to create and provide for the operation of an
28 authority.
29 (2) In the resolution of intent, the governing body proposing
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1 to create the authority shall set a date for holding a public
2 hearing on the adoption of a proposed resolution creating the
3 authority and designating the boundaries of the authority district
4 or districts. Notice of the public hearing shall must be published
5 twice in a newspaper of general circulation in the municipality,
6 not less than 20 nor or more than 40 days before the date of the
7 hearing. Except as otherwise provided in subsection (8), not less
8 than 20 days before the hearing, the governing body proposing to
9 create the authority shall also mail notice of the hearing to the
10 property taxpayers of record in a proposed authority district and,
11 for a public hearing to be held after February 15, 1994, to the
12 governing body of each taxing jurisdiction levying taxes that would
13 be subject to capture if the authority is established and a tax
14 increment financing plan is approved. Beginning June 1, 2005, the
15 notice of hearing within the time frame described in this
16 subsection shall must be mailed by certified mail to the governing
17 body of each taxing jurisdiction levying taxes that would be
18 subject to capture if the authority is established and a tax
19 increment financing plan is approved. Failure of a property
20 taxpayer to receive the notice shall does not invalidate these
21 proceedings. The notice shall must state the date, time, and place
22 of the hearing, and shall must describe the boundaries of the
23 proposed authority district or districts. At that hearing, a
24 resident, taxpayer, or property owner from a taxing jurisdiction in
25 which the proposed district is located or an official from a taxing
26 jurisdiction with millage that would be subject to capture has the
27 right to be heard in regard to the establishment of the authority
28 and the boundaries of that proposed authority district. The
29 governing body of the municipality in which a proposed district is
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1 to be located shall not incorporate land into an authority district
2 not included in the description contained in the notice of public
3 hearing, but it may eliminate lands described in the notice of
4 public hearing from an authority district in the final
5 determination of the boundaries.
6 (3) Except as otherwise provided in subsection (8), not more
7 than 60 days after a public hearing held after February 15, 1994,
8 the governing body of a taxing jurisdiction with millage that would
9 otherwise be subject to capture may exempt its taxes from capture
10 by adopting a resolution to that effect and filing a copy with the
11 clerk of the municipality proposing to create the authority.
12 However, a resolu