Michigan Laws 123.1356a – Municipality that is tax increment finance authority; calculation of municipality’s tax increment small taxpayer loss; duties of municipality; report
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Terms Used In Michigan Laws 123.1356a
- Authority: means the local community stabilization authority, a metropolitan authority established under section 7. See Michigan Laws 123.1345
- Captured value: means 1 or more of the following:
(i) For a tax increment finance authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125. See Michigan Laws 123.1345Commercial personal property: means , except as otherwise provided in subparagraph (iii), all of the following:
(i) Personal property classified as commercial personal property under section 34c of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345Department: means the department of treasury. See Michigan Laws 123.1345 Increased captured value: means the anticipated increase in captured value for all industrial personal property and commercial personal property in a tax increment finance authority that would have occurred as a result of either the addition of personal property as part of a specific project or the expiration of an exemption under section 7k, 7ff, or 9f of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345 Industrial personal property: means , except as otherwise provided in subparagraph (iii), all of the following:
(i) Personal property classified as industrial personal property under section 34c of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345Municipality: includes , but is not limited to, the following:
(i) Counties. See Michigan Laws 123.1345Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Personal property: All property that is not real property. state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Tax increment finance authority: means an authority created under 1 or both of the following:
(i) The brownfield redevelopment financing act, 1996 PA 381, MCL 125. See Michigan Laws 123.1345Tax increment small taxpayer loss: means the amount of revenue lost by a municipality that is a tax increment finance authority due to the exemption provided by section 9o of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345
(1) Not later than June 15, 2014 and June 15, 2015, each municipality that is a tax increment finance authority shall calculate and report to the department the municipality’s tax increment small taxpayer loss for the current calendar year.
(2) Not later than June 15, 2016, and each June 15 thereafter, each municipality that is a tax increment finance authority shall do all of the following for each of its tax increment financing plans:
(a) Calculate separately for each category of property the captured value of all industrial personal property and commercial personal property in the municipality that is a tax increment finance authority in 2013 and add any increased captured value for the current year.
(b) For the 2016, 2017, 2018, 2019, and 2020 calendar years’ calculations, from each amount calculated in subdivision (a), subtract the captured value of all industrial personal property and commercial personal property in the municipality that is a tax increment finance authority in the current year for that category of property and multiply the resulting amount by each individual millage rate calculated under section 13(5), to the extent the millage is subject to capture by that tax increment finance authority for that category of property. For the calendar year 2021 and subsequent years’ calculations, from each amount calculated in subdivision (a), subtract the captured value of all industrial personal property and commercial personal property in the municipality that is a tax increment finance authority in the current year for that category of property and multiply the resulting amount by each individual millage rate calculated under section 13(4) and (5) and the state education tax levied under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, to the extent the millage is subject to capture by that tax increment finance authority for that category of property.
(c) Add all of the amounts calculated under subdivision (b). If the estimated amount of tax increment revenue for the current year for all property in the municipality that is a tax increment finance authority is negative, the sum of the subdivision (b) amounts calculated under this subdivision shall be reduced by that negative amount.
(d) For calendar year 2017 calculations only, adjust the amount calculated under subdivision (c) by the amount required to reflect changes in prior year taxable values that affect any prior year calculation under this section and that can be calculated from taxable values reported under section 151(1) of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.
(e) For an obligation refinanced after 2012, estimate for the term of the obligation:
(i) The cumulative school district operating tax and state education tax that would have been captured to repay the obligation had the obligation not been refinanced.
(ii) The cumulative amount calculated under subdivision (c), as adjusted by subdivision (d), for school district operating tax and state education tax for the obligation had it not been refinanced.
(f) Once the amount included in subdivision (c), as adjusted by subdivision (d), for the current and prior years for school operating tax and state education tax for the refinanced obligation equals the amount estimated in subdivision (e)(ii), subtract from the amount calculated under subdivision (c), as adjusted by subdivision (d), the amount calculated under subdivision (c), as adjusted by subdivision (d), for school district operating tax and state education tax for the refinanced obligation.
(g) Once the amount of school district operating tax and state education tax captured for the current and prior years to pay the refinanced obligation equals the amount estimated under subdivision (e)(i), subtract from the amount calculated in subdivision (c), as adjusted by subdivision (d), the amount of school operating tax and state education tax captured to repay the refinanced obligation.
(3) Not later than June 15, 2016, and each June 15 thereafter, each municipality that is a tax increment finance authority shall report to the department the results of the calculations under subsection (2) for each tax increment financing plan.