Michigan House Bill HB4351

Michigan 2023-2024 Regular Session

• Introduced: 4/11/23
• Refer: 4/11/23

Caption

Property tax: millage; fund for matching state grant program for certain local millages; create. Creates new act. TIE BAR WITH: HB 4350'23

Impact

The introduction of HB4351 is expected to have significant implications on local taxation policies in Michigan. By providing state matching funds, the bill aims to incentivize municipalities to adopt more favorable property tax rates, thereby improving fiscal conditions for local residents and businesses. The potential for increased funding through this grant program could lead to more equitable financial resources across the municipalities, especially benefiting those that might struggle with budget constraints.

Summary

House Bill 4351 establishes the 'Raise Up Local Grant Fund', aimed at providing matching state grants for property taxes and special assessments levied by certain municipalities. This initiative seeks to support local governments financially, allowing them to reduce their tax burdens while promoting economic stability and growth within communities. The fund will be administered by the Department of Treasury, which will oversee the investment and distribution of funds from the account created specifically for this purpose.

Contention

While the bill is generally viewed favorably as a means to empower local governments, some points of contention may arise regarding the eligibility criteria for municipalities and the scope of funded projects. Discussions may center around whether the matching state grants are equitable across different regions, and how the fund's management will ensure that all municipalities have equal access to the benefits. Additionally, there is potential concern about the connections and dependencies created between state and local funding decisions, which could impact local autonomy.