| 1 | 1 | | SENATE BILL NO. 784 A bill to amend 2018 PA 57, entitled "Recodified tax increment financing act," by amending sections 201, 301, 402, 523, 603, 703, and 803 (MCL 125.4201, 125.4301, 125.4402, 125.4523, 125.4603, 125.4703, and 125.4803), section 402 as amended by 2023 PA 312. the people of the state of michigan enact: Sec. 201. As used in this part: (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority in anticipation of repayment by the authority. Evidence of the intent to repay an advance may include, includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved prior to before the advance, or a resolution of the authority or the municipality. (b) "Assessed value" means 1 of the following: (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) For valuations made after December 31, 1994, the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. (c) "Authority" means a downtown development authority created pursuant to under this part. (d) "Board" means the governing body of an authority. (e) "Business district" means an area in the downtown of a municipality zoned and used principally for business. (f) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the project area, including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in subdivision (aa), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. (g) "Catalyst development project" means a project that is located in a municipality with a population greater than 600,000, is designated by the authority as a catalyst development project, and is expected to result in at least not less than $300,000,000.00 of capital investment. There shall must not be no more than 1 catalyst development project designated within each authority. (h) "Chief executive officer" means the mayor or city manager of a city, the president or village manager of a village, or the supervisor of a township or, if designated by the township board for purposes of this part, the township superintendent or township manager of a township. (i) "Development area" means that area to which a development plan is applicable. (j) "Development plan" means that information and those requirements for a development plan set forth in section 217. (k) "Development program" means the implementation of the development plan. (l) "Downtown district" means that part of an area in a business district that is specifically designated by ordinance of the governing body of the municipality pursuant to under this part. A downtown district may include 1 or more separate and distinct geographic areas in a business district as determined by the municipality if the municipality enters into an agreement with a qualified township under section 203(7) or if the municipality is a city that surrounds another city and that other city lies between the 2 separate and distinct geographic areas. If the downtown district contains more than 1 separate and distinct geographic area in the downtown district, the separate and distinct geographic areas shall be are considered 1 downtown district. (m) "Eligible advance" means an advance made before August 19, 1993. (n) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. (o) "Fire alarm system" means a system designed to detect and annunciate the presence of fire, or by-products of fire. Fire alarm system includes smoke detectors. (p) "Fiscal year" means the fiscal year of the authority. (q) "Governing body of a municipality" means the elected body of a municipality having legislative powers. (r) "Initial assessed value" means the assessed value, as equalized, of all the taxable property within the boundaries of the development area at the time when the ordinance establishing the tax increment financing plan is approved, as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time when the resolution is adopted. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered to be property that is exempt from taxation. The initial assessed value of property for which a specific local tax was paid in lieu of a property tax shall must be determined as provided in subdivision (aa). In the case of If a municipality having a population of less than 35,000 that established an authority prior to before 1985, created a district or districts, and approved a development plan or tax increment financing plan or amendments amendment to a plan , and which plan or tax increment financing plan or amendments to a plan, and which plan that expired by its terms December 31, 1991, the initial assessed value for the purpose of any plan or plan amendment adopted as an extension of the expired plan shall must be determined as if the plan had not expired December 31, 1991. For a development area designated before 1997 in which a renaissance zone has subsequently been designated pursuant to under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, the initial assessed value of the development area otherwise determined under this subdivision shall must be reduced by the amount by which the current assessed value of the development area was reduced in 1997 due to the exemption of property under section 7ff of the general property tax act, 1893 PA 206, MCL 211.7ff, but in no case shall the initial assessed value must not be less than zero. (s) "Municipality" means a city, village, or township. (t) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default upon on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. (ii) A management contract or a contract for professional services. (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. (u) "On behalf of an authority", in relation to an eligible advance made by a municipality, or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by the municipality, or eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: (i) A reimbursement agreement between the municipality and an authority it established. (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. (iii) A resolution of the authority agreeing to make payments to the incorporating unit. (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. (v) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. (w) "Other protected obligation" means any of the following: (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii), (iii), or (iv), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before December 31, 1993, for which a contract for final design is entered into by or on behalf of the municipality or authority before March 1, 1994 or for which a written agreement with a developer, titled preferred development agreement, was entered into by or on behalf of the municipality or authority in July 1993. (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. (iv) An obligation incurred by the authority evidenced by or to finance a contract to purchase real property within a development area or a contract to develop that property within the development area, or both, if all of the following requirements are met: (A) The authority purchased the real property in 1993. (B) Before June 30, 1995, the authority enters a contract for the development of the real property located within the development area. (C) In 1993, the authority or municipality on behalf of the authority received approval for a grant from both of the following: (I) The department of natural resources for site reclamation of the real property. (II) The department of consumer and industry services for development of the real property. (v) An ongoing management or professional services contract with the governing body of a county which that was entered into before March 1, 1994 and which that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. (vi) A loan from a municipality to an authority if the loan was approved by the legislative body of the municipality on April 18, 1994. (vii) Funds expended to match a grant received by a municipality on behalf of an authority for sidewalk improvements from the Michigan department of transportation if the legislative body of the municipality approved the grant application on April 5, 1993 and the grant was received by the municipality in June 1993. (viii) For taxes captured in 1994, an obligation described in this subparagraph issued or incurred to finance a project. An obligation is considered issued or incurred to finance a project described in this subparagraph only if all of the following are met: (A) The obligation requires raising capital for the project or paying for the project, whether or not a borrowing is involved. (B) The obligation was part of a development plan and the tax increment financing plan was approved by a municipality on May 6, 1991. (C) The obligation is in the form of a written memorandum of understanding between a municipality and a public utility dated October 27, 1994. (D) The authority or municipality captured school taxes during 1994. (ix) An obligation incurred after July 31, 2012 by an authority, municipality, or other governmental unit to pay for costs associated with a catalyst development project. (x) "Public facility" means a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, building, and access routes to any of the foregoing, these places, designed and dedicated to use by the public generally, or used by a public agency. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. Public facility also includes the acquisition, construction, improvement, and operation of a building owned or leased by the authority to be used as a retail business incubator. (y) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if 1 or more of the following apply: (i) The obligation is issued to refund a qualified refunding obligation issued in November 1997 and any subsequent refundings of that obligation issued before January 1, 2010 or the obligation is issued to refund a qualified refunding obligation issued on May 15, 1997 and any subsequent refundings of that obligation issued before January 1, 2010 in an authority in which 1 parcel or group of parcels under common ownership represents 50% or more of the taxable value captured within the tax increment finance district and that will ultimately provide for at least not less than a 40% reduction in the taxable value of the property as part of a negotiated settlement as a result of an appeal filed with the state tax tribunal. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2611, if issued before January 1, 2010. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is hereby extended to 1 year after the final date of maturity of the qualified refunding obligations. (ii) The refunding obligation meets both of the following: (A) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. (B) The net present value of the sum of the tax increment revenues described in subdivision (cc)(ii) and the distributions under section 213b to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (cc)(ii) and the distributions under section 213b to repay the obligation being refunded, as calculated using a method approved by the department of treasury. (iii) The obligation is issued to refund an other protected obligation issued as a capital appreciation bond delivered to the Michigan municipal bond authority on December 21, 1994 and any subsequent refundings of that obligation issued before January 1, 2012. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 305(2), (3), (5), and (6), section 501, section 503, or section 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611, if issued before January 1, 2012. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is extended to 1 year after the final date of maturity of the qualified refunding obligations. The obligation may be payable through the year 2025 at an interest rate not exceeding the maximum rate permitted by law, notwithstanding the bond maturity dates contained in the notice of intent to issue bonds published by the municipality. An obligation issued under this subparagraph is a qualified refunding obligation only to the extent that revenues described in subdivision (cc)(ii) and distributions under section 213b to repay the qualified refunding obligation do not exceed $750,000.00. (iv) The obligation is issued to refund a qualified refunding obligation issued on February 13, 2008, and any subsequent refundings of that obligation, issued before December 31, 2018. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 305(2), (3), (5), and (6), 501, 503, or 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is extended to 1 year after the final date of maturity of the qualified refunding obligations. Revenues described in subdivision (cc)(ii) and distributions made under section 213b in excess of the amount needed for current year debt service on an obligation issued under this subparagraph may be paid to the authority to the extent necessary to pay future years' debt service on the obligation as determined by the board. (z) "Qualified township" means a township that meets all of the following requirements: (i) Was not eligible to create an authority prior to before January 3, 2005. (ii) Adjoins a municipality that previously created an authority. (iii) Along with the adjoining municipality that previously created an authority, is a member of the same joint planning commission under the joint municipal planning act, 2003 PA 226, MCL 125.131 to 125.143. (aa) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (bb) "State fiscal year" means the annual period commencing October 1 of each year. (cc) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area, subject to the following requirements: (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions other than the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), to repay eligible advances, eligible obligations, and other protected obligations. (iii) Tax increment revenues do not include any of the following: (A) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to such those ad valorem property taxes. (B) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to such those ad valorem property taxes. (C) Ad valorem property taxes exempted from capture under section 203(3) or specific local taxes attributable to such those ad valorem property taxes. (D) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (III) Except as otherwise provided in section 203(3), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (E) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii) or (v), and required to be transmitted to the authority under section 214(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, a local school district or an intermediate school district upon on the captured assessed value of real and personal property in a development area shall must be determined separately for the levy by the this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): (A) The percentage that the total ad valorem taxes and specific local taxes available for distribution by law to the this state, a local school district, or an intermediate school district, respectively, bears to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to the this state, each local school district, and each intermediate school district. (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii) or (v). (v) Tax increment revenues include ad valorem property taxes and specific local taxes, in an annual amount and for each year approved by the state treasurer, attributable to the levy by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and by local or intermediate school districts, upon on the captured assessed value of real and personal property in the development area of an authority established in a city with a population of 600,000 or more to pay for, or reimburse an advance for, not more than $8,000,000.00 for the demolition of buildings or structures on public or privately owned property within a development area that commences in 2005, or to pay the annual principal of or interest on an obligation, the terms of which are approved by the state treasurer, issued by an authority, or by a city on behalf of an authority, to pay not more than $8,000,000.00 of the costs to demolish buildings or structures on public or privately owned property within a development area that commences in 2005. (vi) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the levy by this state under the state education tax act, 1993 PA 331, MCL 211.201 211.901 to 211.906, and by local or intermediate school districts which that were levied on or after July 1, 2010, upon on the captured assessed value of real and personal property in the development area of an authority established in a city with a population of 600,000 or more to pay for, or reimburse an advance for, costs associated with the land acquisition, preliminary site work, and construction of a catalyst development project. Sec. 301. As used in this part: (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority. Evidence of the intent to repay an advance is required and may include, includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved before the advance or before August 14, 1993, or a resolution of the authority or the municipality. (b) "Assessed value" means 1 of the following: (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) For valuations made after December 31, 1994, taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. (c) "Authority" means a tax increment finance authority created under this part. (d) "Authority district" means that area within which an authority exercises its powers and within which 1 or more development areas may exist. (e) "Board" means the governing body of an authority. (f) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the development area, including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in subdivision (w), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. (g) "Chief executive officer" means the mayor or city manager of a city, the president of a village, or the supervisor of a township. (h) "Development area" means that area to which a development plan is applicable. (i) "Development area citizens council" or "council" means that advisory body established pursuant to under section 20.320. (j) "Development plan" means that information and those requirements for a development set forth in section 16.316. (k) "Development program" means the implementation of the development plan. (l) "Eligible advance" means an advance made before August 19, 1993. (m) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. Eligible obligation also includes an ongoing management contract or contract for professional services or development services that was entered into by the authority or a municipality on behalf of the authority in 1991, and related similar written agreements executed before 1984, if the 1991 agreement both provides for automatic annual renewal and incorporates by reference the prior related agreements. ; however, However, receipt by an authority of tax increment revenues authorized under subdivision (aa)(ii) in order to pay costs arising under those contracts shall be is limited to the following: (i) For taxes levied before July 1, 2005, the amount permitted to be received by an authority for an eligible obligation as provided in this part. (ii) For taxes levied after June 30, 2005 and before July 1, 2006, $3,000,000.00. (iii) For taxes levied after June 30, 2006 and before July 1, 2007, $3,000,000.00. (iv) For taxes levied after June 30, 2007 and before July 1, 2008, $3,000,000.00. (v) For taxes levied after June 30, 2008 and before July 1, 2009, $3,000,000.00. (vi) For taxes levied after June 30, 2009 and before July 1, 2010, $3,000,000.00. (vii) For taxes levied after June 30, 2010 and before July 1, 2011, $2,650,000.00. (viii) For taxes levied after June 30, 2011 and before July 1, 2012, $2,400,000.00. (ix) For taxes levied after June 30, 2012 and before July 1, 2013, $2,125,000.00. (x) For taxes levied after June 30, 2013 and before July 1, 2014, $1,500,000.00. (xi) For taxes levied after June 30, 2014 and before July 1, 2015, $1,150,000.00. (xii) For taxes levied after June 30, 2015, $0.00. (n) "Fiscal year" means the fiscal year of the authority. (o) "Governing body" means the elected body of a municipality having legislative powers. (p) "Initial assessed value" means the assessed value, as equalized, of all the taxable property within the boundaries of the development area at the time when the resolution establishing the tax increment financing plan is approved as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time when the resolution is adopted. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered property that is exempt from taxation. The initial assessed value of property for which a specific tax was paid in lieu of a property tax shall must be determined as provided in subdivision (w). (q) "Municipality" means a city. (r) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default upon on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. (ii) A management contract or a contract for professional services. (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. (s) "On behalf of an authority", in relation to an eligible advance made by a municipality, or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by a municipality, or the eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: (i) A reimbursement agreement between the municipality and an authority it established. (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. (iii) A resolution of the authority agreeing to make payments to the incorporating unit. (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. (t) "Other protected obligation" means any of the following: (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii) or (iii), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before December 31, 1993, for which a contract for final design is entered into by the municipality or authority before March 1, 1994. (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. (iv) An obligation issued or incurred by an authority or by a municipality on behalf of an authority to implement a project described in a tax increment finance plan approved by the municipality in accordance with this part before August 19, 1993, that is located on land owned by a public university on the date the tax increment financing plan is approved, and for which a contract for final design is entered into before December 31, 1993. (v) An ongoing management or professional services contract with the governing body of a county which that was entered into before March 1, 1994 and which that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. (vi) An obligation issued or incurred by a municipality under a contract executed on December 19, 1994 as subsequently amended between the municipality and the authority to implement a project described in a tax increment finance plan approved by the municipality under this part before August 19, 1993 for which a contract for final design was entered into by the municipality before March 1, 1994 provided that if final payment by the municipality is made on or before December 31, 2001. (vii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority that meets all of the following qualifications: (A) The obligation is issued or incurred to finance a project described in a tax increment financing plan approved before August 19, 1993 by a municipality in accordance with this part. (B) The obligation qualifies as an other protected obligation under subparagraph (ii) and was issued or incurred by the authority before December 31, 1994 for the purpose of financing the project. (C) A portion of the obligation issued or incurred by the authority before December 31, 1994 for the purpose of financing the project was retired prior to before December 31, 1996. (D) The obligation does not exceed the dollar amount of the portion of the obligation retired prior to before December 31, 1996. (viii) An obligation incurred by an authority that meets both of the following qualifications: (A) The obligation is a contract of lease originally executed on December 20, 1994 between the municipality and the authority to partially implement the authority's development plan and tax increment financing plan. (B) The obligation qualifies as an obligation under subparagraph (ii). The obligation described in this subparagraph may be amended to extend cash rental payments for a period not to exceed 30 years through the year 2039. The duration of the development plan and tax increment financing plan described in this subparagraph is extended to 1 year after the final date that the extended cash rental payments are due. (u) "Public facility" means 1 or more of the following: (i) A street, plaza, or pedestrian mall, and any improvements to a street, plaza, boulevard, alley, or pedestrian mall, including street furniture and beautification, a park, parking facility, recreation facility, playground, school, library, public institution or administration building, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipeline, transit-oriented development, transit-oriented facility, and other similar facilities and necessary easements of these facilities designed and dedicated to use by the public generally or used by a public agency. As used in this subparagraph, public "public institution or administration building building" includes, but is not limited to, a police station, fire station, court building, or other public safety facility. (ii) The acquisition and disposal of real and personal property or interests in real and personal property, demolition of structures, site preparation, relocation costs, building rehabilitation, and all associated administrative costs, including, but not limited to, architect's, engineer's, legal, and accounting fees as contained in the resolution establishing the district's development plan. (iii) An improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. (v) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if 1 of the following applies: (i) The refunding obligation meets both of the following: (A) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. (B) The net present value of the sum of the tax increment revenues described in subdivision (aa)(ii) and the distributions under section 12a 312a to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (aa)(ii) and the distributions under section 312a to repay the obligation being refunded, as calculated using a method approved by the department of treasury. (ii) The refunding obligation is a tax increment refunding bond issued to refund a refunding bond that is an other protected obligation issued as a capital appreciation bond delivered to the Michigan municipal bond authority on December 21, 1994, or bonds issued to refund that bond, and the authority, by resolution of its board, authorized issuance of the refunding obligation before December 31, 2019 with a final maturity not later than 2039. The municipality by majority vote of the members of its governing body may pledge its full faith and credit for the payment of the principal of and interest on the refunding obligation. A refunding obligation issued under this subparagraph is not subject to the requirements of section 305(2), (3), (5), or (6), 501, 503, or 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611. The duration of the development plan and the tax increment financing plan relating to the refunding obligations described in this subparagraph is extended to 1 year after the final date of maturity of the refunding obligation. (w) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (x) "State fiscal year" means the annual period commencing October 1 of each year. (y) "Tax increment district" or "district" means that area to which the tax increment finance plan pertains. (z) "Tax increment financing plan" means that information and those requirements set forth in sections 313 to 315. (aa) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area, subject to the following requirements: (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions other than the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), to repay eligible advances, eligible obligations, and other protected obligations. (iii) Tax increment revenues do not include any of the following: (A) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to such those ad valorem property taxes. (B) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to such those ad valorem property taxes. (C) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (III) Except as otherwise provided in section 303(6), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (D) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii), and required to be transmitted to the authority under section 314(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, a local school district or an intermediate school district upon on the captured assessed value of real and personal property in a development area shall must be determined separately for the levy by the this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): (A) The percentage which the total ad valorem taxes and specific local taxes available for distribution by law to the this state, a local school district, or an intermediate school district, respectively, bear to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to the this state, each local school district, and each intermediate school district. (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii). (bb) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. (cc) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. Sec. 402. As used in this part: (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority in anticipation of repayment by the authority. Evidence of the intent to repay an advance includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved before the advance, or a resolution of the authority or the municipality. (b) "Alternative energy technology" means equipment, component parts, materials, electronic devices, testing equipment, and related systems that are specifically designed, specifically fabricated, and used primarily for 1 or more of the following: (i) The storage, generation, reformation, or distribution of clean fuels integrated within an alternative energy system or alternative energy vehicle, not including an anaerobic digester energy system or a hydroelectric energy system, for use within the alternative energy system or alternative energy vehicle. (ii) The process of generating and putting into a usable form the energy generated by an alternative energy system. Alternative energy technology does not include those component parts of an alternative energy system that are required regardless of the energy source. (iii) Research and development of an alternative energy vehicle. (iv) Research, development, and manufacturing of an alternative energy system. (v) Research, development, and manufacturing of an anaerobic digester energy system. (vi) Research, development, and manufacturing of a hydroelectric energy system. (c) "Alternative energy technology business" means a business engaged in the research, development, or manufacturing of alternative energy technology or a business located in an authority district that includes a military installation that was operated by the United States Department of Defense and closed after 1980. (d) "Assessed value" means 1 of the following: (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) For valuations made after December 31, 1994, the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. (e) "Authority" means a local development finance authority created under this part. (f) "Authority district" means an area or areas within which an authority exercises its powers. (g) "Board" means the governing body of an authority. (h) "Business development area" means an area designated as a certified industrial park under this part before June 29, 2000, or an area designated in the tax increment financing plan that meets all of the following requirements: (i) The area is zoned to allow its use for eligible property. (ii) The area has a site plan or plat approved by the city, village, or township in which the area is located. (i) "Business incubator" means real and personal property that meets all of the following requirements: (i) Is located in a certified technology park or a certified alternative energy park. (ii) Is subject to an agreement under section 412a or 412c. (iii) Is developed for the primary purpose of attracting 1 or more owners or tenants who will engage in activities that would each separately qualify the property as eligible property under subdivision (s)(iii). (j) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the eligible property identified in the tax increment financing plan or, for a certified technology park, a certified alternative energy park, or a next Michigan development area, the real and personal property included in the tax increment financing plan, including the current assessed value of property for which specific local taxes are paid in lieu of property taxes as determined pursuant to subdivision (hh), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. Except as otherwise provided in this part, tax abated property in a renaissance zone as defined under section 3 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2683, must be excluded from the calculation of captured assessed value to the extent that the property is exempt from ad valorem property taxes or specific local taxes. (k) "Certified alternative energy park" means that portion of an authority district designated by a written agreement entered into under section 412c between the authority, the municipality or municipalities, and the Michigan economic development corporation. (l) "Certified business park" means a business development area that has been designated by the Michigan economic development corporation as meeting criteria established by the Michigan economic development corporation. The criteria shall establish standards for business development areas including, but not limited to, use, types of building materials, landscaping, setbacks, parking, storage areas, and management. (m) "Certified technology park" means that portion of the authority district designated by a written agreement entered into under section 412a between the authority, the municipality, and the Michigan economic development corporation. (n) "Chief executive officer" means the mayor or city manager of a city, the president of a village, or, for other local units of government or school districts, the person charged by law with the supervision of the functions of the local unit of government or school district. (o) "Development plan" means that information and those requirements for a development set forth in section 415. (p) "Development program" means the implementation of a development plan. (q) "Eligible advance" means an advance made before August 19, 1993. (r) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. (s) "Eligible property" means land improvements, buildings, structures, and other real property, and machinery, equipment, furniture, and fixtures, or any part or accessory of these items whether completed or in the process of construction comprising an integrated whole, located within an authority district, of which the primary purpose and use is or will be 1 of the following: (i) The manufacture of goods or materials or the processing of goods or materials by physical or chemical change. (ii) Agricultural processing. (iii) A high technology activity. (iv) The production of energy by the processing of goods or materials by physical or chemical change by a small power production facility as defined by the Federal Energy Regulatory Commission under the public utility regulatory policies act of 1978, Public Law 95-617, which facility is fueled primarily by biomass or wood waste. This part does not affect a person's rights or liabilities under law with respect to groundwater contamination described in this subparagraph. This subparagraph applies only if all of the following requirements are met: (A) Tax increment revenues captured from the eligible property will be used to finance, or will be pledged for debt service on tax increment bonds used to finance, a public facility in or near the authority district designed to reduce, eliminate, or prevent the spread of identified soil and groundwater contamination, pursuant to law. (B) The board of the authority exercising powers within the authority district where the eligible property is located adopted an initial tax increment financing plan between January 1, 1991 and May 1, 1991. (C) The municipality that created the authority establishes a special assessment district whereby not less than 50% of the operating expenses of the public facility described in this subparagraph will be paid for by special assessments. Not less than 50% of the amount specially assessed against all parcels in the special assessment district must be assessed against parcels owned by parties potentially responsible for the identified groundwater contamination pursuant to law. (v) A business incubator. (vi) An alternative energy technology business. (vii) A transit-oriented facility. (viii) A transit-oriented development. (ix) An eligible next Michigan business, as that term is defined in section 3 of the Michigan economic growth authority act, 1995 PA 24, MCL 207.803, and other businesses within a next Michigan development area, but only to the extent designated as eligible property within a development plan approved by a next Michigan development corporation. (t) "Fiscal year" means the fiscal year of the authority. (u) "Governing body" means, except as otherwise provided in this subdivision, the elected body having legislative powers of a municipality creating an authority under this part. For a next Michigan development corporation, governing body means the executive committee of the next Michigan development corporation, unless otherwise provided in the interlocal agreement or articles of incorporation creating the next Michigan development corporation or the governing body of an eligible urban entity or its designee as provided in the next Michigan development act, 2010 PA 275, MCL 125.2951 to 125.2959. (v) "High-technology activity" means that term as defined in section 3 of the Michigan economic growth authority act, 1995 PA 24, MCL 207.803. (w) "Initial assessed value" means the assessed value of the eligible property identified in the tax increment financing plan or, for a certified technology park, a certified alternative energy park, or a next Michigan development area, the assessed value of any real and personal property included in the tax increment financing plan, when the resolution establishing the tax increment financing plan is approved as shown by the most recent assessment roll for which equalization has been completed when the resolution is adopted or, for property that becomes eligible property in other than a certified technology park or a certified alternative energy park after the date the plan is approved, when the property becomes eligible property. Property exempt from taxation when the initial assessed value is determined must be included as zero. Property for which a specific local tax is paid in lieu of property tax is not considered exempt from taxation. The initial assessed value of property for which a specific local tax was paid in lieu of property tax is determined as provided in subdivision (hh). (x) "Michigan economic development corporation" means the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999 between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund. If the Michigan economic development corporation is unable for any reason to perform its duties under this part, those duties may be exercised by the Michigan strategic fund. (y) "Michigan strategic fund" means the Michigan strategic fund as described in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094. (z) "Municipality" means a city, village, or urban township. However, for purposes of creating and operating a certified alternative energy park or a certified technology park, municipality includes townships that are not urban townships. (aa) "Next Michigan development area" means a portion of an authority district designated by a next Michigan development corporation under section 412e to which a development plan is applicable. (bb) "Next Michigan development corporation" means that term as defined in section 3 of the next Michigan development act, 2010 PA 275, MCL 125.2953. (cc) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. (ii) A management contract or a contract for professional services. (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. (dd) "On behalf of an authority", in relation to an eligible advance made by a municipality or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by a municipality, or eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: (i) A reimbursement agreement between the municipality and an authority it established. (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. (iii) A resolution of the authority agreeing to make payments to the incorporating unit. (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. (ee) "Other protected obligation" means: (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii) or (iii), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before August 19, 1993, for which a contract for final design is entered into by the municipality or authority before March 1, 1994. (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. (iv) An ongoing management or professional services contract with the governing body of a county that was entered into before March 1, 1994 and that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. (ff) "Public facility" means 1 or more of the following: (i) A street, road, bridge, storm water or sanitary sewer, sewage treatment facility, facility designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, retention basin, pretreatment facility, waterway, waterline, water storage facility, rail line, electric, gas, telephone or other communications, or any other type of utility line or pipeline, transit-oriented facility, transit-oriented development, or other similar or related structure or improvement, together with necessary easements for the structure or improvement. Except for rail lines, utility lines, or pipelines, the structures or improvements described in this subparagraph must be either owned or used by a public agency, functionally connected to similar or supporting facilities owned or used by a public agency, or designed and dedicated to use by, for the benefit of, or for the protection of the health, welfare, or safety of the public generally, whether or not used by a single business entity. Any road, street, or bridge must be continuously open to public access. A public facility must be located on public property or in a public, utility, or transportation easement or right-of-way. (ii) The acquisition and disposal of land that is proposed or intended to be used in the development of eligible property or an interest in that land, demolition of structures, site preparation, and relocation costs. (iii) All administrative and real and personal property acquisition and disposal costs related to a public facility described in subparagraphs (i) and (iv), including, but not limited to, architect's, engineer's, legal, and accounting fees as permitted by the district's development plan. (iv) An improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. (v) All of the following costs approved by the Michigan economic development corporation: (A) Operational costs and the costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that are or may become eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for a business incubator located in a certified technology park or certified alternative energy park. (B) Costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that, if privately owned, would be eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for laboratory facilities, research and development facilities, conference facilities, teleconference facilities, testing, training facilities, and quality control facilities that are or that support eligible property under subdivision (s)(iii), that are owned by a public entity, and that are located within a certified technology park. (C) Costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that, if privately owned, would be eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for facilities that are or that will support eligible property under subdivision (s)(vi), that have been or will be owned by a public entity when the costs are incurred, that are located within a certified alternative energy park, and that have been or will be conveyed, by gift or sale, by the public entity to an alternative energy technology business. (vi) Operating and planning costs included in a plan under section 412(1)(f), including costs of marketing property within the district and attracting development of eligible property within the district. (gg) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if the refunding obligation meets both of the following: (i) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. (ii) The net present value of the sum of the tax increment revenues described in subdivision (jj)(ii) and the distributions under section 411a to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (jj)(ii) and the distributions under section 411a to repay the obligation being refunded, as calculated using a method approved by the department of treasury. (hh) "Specific local taxes" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123, 1953 PA 189, MCL 211.181 to 211.182, and the technology park development act, 1984 PA 385, MCL 207.701 to 207.718. The initial assessed value or current assessed value of property subject to a specific local tax is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (ii) "State fiscal year" means the annual period commencing October 1 of each year. (jj) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions on the captured assessed value of eligible property within the district or, for purposes of a certified technology park, a next Michigan development area, or a certified alternative energy park, real or personal property that is located within the certified technology park, a next Michigan development area, or a certified alternative energy park and included within the tax increment financing plan, subject to the following requirements: (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions, other than this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts, on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), for the following purposes: (A) To repay eligible advances, eligible obligations, and other protected obligations. (B) To fund or to repay an advance or obligation issued by or on behalf of an authority to fund the cost of public facilities related to or for the benefit of eligible property located within a certified technology park or a certified alternative energy park to the extent the public facilities have been included in an agreement under section 412a(3), 412b, or 412c(3), not to exceed 50%, as determined by the state treasurer, of the amounts levied by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local and intermediate school districts for a period, except as otherwise provided in this sub-subparagraph, not to exceed 15 years, as determined by the state treasurer, if the state treasurer determines that the capture under this sub-subparagraph is necessary to reduce unemployment, promote economic growth, and increase capital investment in the municipality. However, if approved by the state treasurer and the president of the Michigan economic development corporation, a certified technology park may capture under this sub-subparagraph for an additional period of 5 years if, before that capture, the authority agrees to additional reporting requirements and modifies its tax increment financing plan to include regional collaboration as determined by the state treasurer and the president of the Michigan economic development corporation. The retroactive approval of an additional period of 5 years may occur after a capture under this sub-subparagraph for that additional period, if the other requirements of this sub-subparagraph are satisfied. In addition, on approval of the state treasurer and the president of the Michigan economic development corporation, if a municipality that has created a certified technology park that has entered into an agreement with another authority that does not contain a certified technology park to designate a distinct geographic area under section 412b, that authority that has created the certified technology park and the associated distinct geographic area may both capture under this sub-subparagraph for an additional period of 15 years as determined by the state treasurer and the president of the Michigan economic development corporation. (C) To fund the cost of public facilities related to or for the benefit of eligible property located within a next Michigan development area to the extent that the public facilities have been included in a development plan, not to exceed 50%, as determined by the state treasurer, of the amounts levied by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local and intermediate school districts for a period not to exceed 15 years, as determined by the state treasurer, if the state treasurer determines that the capture under this sub-subparagraph is necessary to reduce unemployment, promote economic growth, and increase capital investment in the authority district. (iii) Tax increment revenues do not include any of the following: (A) Ad valorem property taxes or specific local taxes that are excluded from and not made part of the tax increment financing plan. Ad valorem personal property taxes or specific local taxes associated with personal property may be excluded from and may not be part of the tax increment financing plan. (B) Ad valorem property taxes and specific local taxes attributable to ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority. (C) Ad valorem property taxes exempted from capture under section 404(3) or specific local taxes attributable to those ad valorem property taxes. (D) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific local taxes attributable to those ad valorem property taxes. (E) The amount of ad valorem property taxes or specific taxes captured by a downtown development authority under part 2, tax increment finance authority under part 3, or brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, if those taxes were captured by these other authorities on the date that the initial assessed value of a parcel of property was established under this part. (F) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (III) Except as otherwise provided in section 404(3), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (G) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii), and required to be transmitted to the authority under section 413(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, or a local school district or an intermediate school district on the captured assessed value of real and personal property in a development area must be determined separately for the levy by this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): (A) The percentage that the total ad valorem taxes and specific local taxes available for distribution by law to this state, a local school district, or an intermediate school district, respectively, bears to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to this state, each local school district, and each intermediate school district. (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii). (kk) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. (ll) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. (mm) "Urban township" means a township that meets 1 or more of the following: (i) Meets all of the following requirements: (A) Has a population of 20,000 or more, or has a population of 10,000 or more but is located in a county with a population of 400,000 or more. (B) Adopted a master zoning plan before February 1, 1987. (C) Provides sewer, water, and other public services to all or a part of the township. (ii) Meets all of the following requirements: (A) Has a population of less than 20,000. (B) Is located in a county with a population of 250,000 or more but less than 400,000, and that county is located in a metropolitan statistical area. (C) Has within its boundaries a parcel of property under common ownership that is 800 acres or larger and is capable of being served by a railroad, and located within 3 miles of a limited access highway. (D) Establishes an authority before December 31, 1998. (iii) Meets all of the following requirements: (A) Has a population of less than 20,000. (B) Has a state equalized valuation for all real and personal property located in the township of more than $200,000,000.00. (C) Adopted a master zoning plan before February 1, 1987. (D) Is a charter township under the charter township act, 1947 PA 359, MCL 42.1 to 42.34. (E) Has within its boundaries a combination of parcels under common ownership that is 800 acres or larger, is immediately adjacent to a limited access highway, is capable of being served by a railroad, and is immediately adjacent to an existing sewer line. (F) Establishes an authority before March 1, 1999. (iv) Meets all of the following requirements: (A) Has a population of 13,000 or more. (B) Is located in a county with a population of 150,000 or more. (C) Adopted a master zoning plan before February 1, 1987. (v) Meets all of the following requirements: (A) Is located in a county with a population of 1,000,000 or more. (B) Has a written agreement with an adjoining township to develop 1 or more public facilities on contiguous property located in both townships. (C) Has a master plan in effect. (vi) Meets all of the following requirements: (A) Has a population of less than 10,000. (B) Has a state equalized valuation for all real and personal property located in the township of more than $280,000,000.00. (C) Adopted a master zoning plan before February 1, 1987. (D) Has within its boundaries a combination of parcels under common ownership that is 199 acres or larger, is located within 1 mile of a limited access highway, and is located within 1 mile of an existing sewer line. (E) Has rail service. (F) Establishes an authority before May 7, 2009. (vii) Has joined an authority under section 403(2) that is seeking or has entered into an agreement for a certified technology park. (viii) Has established an authority that is seeking or has entered into an agreement for a certified alternative energy park. Sec. 523. (1) At the request of a street railway, and with the consent of the department, a city, village, or township in which a street railway system is located may establish a transit operations finance zone for a street railway system if the city, village, or township and the department determine that it is necessary for the best interests of the public to promote and finance transit operations in a zone. A parcel shall must not be included in more than 1 zone created under this section. (2) The boundaries of a zone shall be established by the city, village, or township and may include parcels that are in whole or in part up to 1/4 mile in distance from the street railway system. Before establishing a zone, the city, village, or township shall consult with the street railway, the department, affected taxing jurisdictions, and any other person or entity that the city, village, or township considers necessary. The city, village, or township may conduct a planning study and may designate a zone before implementation of street railway system service within the zone. (3) If the city, village, or township and the department determine that it is necessary for the best interests of the public to promote and finance transit operations in a zone under subsection (1), the city, village, or township shall enter into an agreement with the street railway and the department for the creation of a zone. The agreement shall must include, but is not be limited to, all of the following: (a) The geographic boundaries of the zone, including both of the following: (i) The designation of boundaries of the zone in relation to highways, streets, streams, lakes, other bodies of water, or otherwise. (ii) The location and extent of existing streets and other public facilities within the zone, designating the location, character, and extent of the categories of public and private land uses then existing in the zone, including residential, recreational, commercial, industrial, educational, and other uses, and including a legal description of the zone. (b) A tax increment financing plan for the zone as provided under subsection (4). (c) A description of specific actions to be taken by the parties under the agreement to help establish the zone. (d) The requirement that amendments to the agreement must be approved by the city, village, or township, the department, and the street railway. (e) Any other material that the city, village, or township, the department, or the street railway consider necessary or appropriate. (4) A tax increment financing plan for a zone established under this section shall must include a description of the tax increment financing procedure, the distribution of tax increment financing revenue to the street railway, and a statement of the estimated impact of tax increment financing on the assessed value of property in each taxing jurisdiction in the zone. The plan may exclude from captured assessed value growth in property value resulting solely from inflation and, if so, shall must include the method for excluding that growth. The plan shall must require that tax increment revenue received by a street railway under the plan be used only for the expenses of operating the street railway system. If the street railway subject to an agreement designating a zone under this section ceases to operate a street railway system in the city, village, or township that established the zone, the plan shall terminate terminates and the zone shall be is abolished. The plan shall must restrict the revenue distributed to a street railway for any tax year to the lesser of 25% of any operating deficit of the street railway for the prior fiscal year or $4,000,000.00. Before including a tax increment financing plan in an agreement, the city, village, or township shall provide taxing jurisdictions in the zone levying taxes subject to capture under the plan an opportunity to meet with the city, village, or township. The city, village, or township shall fully inform the taxing jurisdictions of the fiscal and economic implications of the plan and the taxing jurisdictions may present recommendations to the city, village, or township on the tax increment financing plan. (5) Before entering into an agreement for the creation of a zone under this section, the city, village, or township shall must conduct a public hearing on the proposed agreement. Notice of the public hearing shall must be published twice in a newspaper of general circulation in the city, village, or township, not less than 20 or more than 40 days before the date of the hearing. The notice shall must state the date, time, and place of the hearing and shall must describe the proposed boundaries of the zone. A citizen, taxpayer, or property owner of the city, village, or township, or an official from a taxing jurisdiction within the zone has the right to be heard on the agreement and the proposed boundaries of the zone. The agreement shall must not include in the zone land not included in the description contained in the notice of public hearing, but the agreement may exclude described land from the zone in the final determination of the boundaries of the zone. A city, village, or township shall not execute an agreement for the creation of a zone under this section unless the city, village, or township finds that it is necessary for the best interests of the public to promote and finance transit operations in a zone. (6) An agreement designating a zone and establishing its boundaries under this section and any amendments to the agreement shall must be filed by the city, village, or township with the secretary of state. (7) The municipal and county treasurers shall transmit tax increment revenues to the treasurer for the city, village, or township in which the street railway system is located for distribution to the street railway according to the tax increment financing plan and the agreement. The street railway shall expend the tax increment revenues only under the terms of the tax increment financing plan and the agreement under this section. Unused funds shall revert proportionately to the respective taxing jurisdictions. Tax increment revenues shall must not be used to circumvent existing property tax limitations. The city, village, or township and the department may abolish the zone if the city, village, or township and the department find that the purposes for which the zone was established are accomplished. Annually, the city, village, or township, with assistance from the street railway, shall submit to the department and the state tax commission a report on the status of the tax increment financing revenue. The report shall must include all of the following: (a) The amount and source of tax increment revenue received by the street railway. (b) The amount and purpose of expenditures from tax increment revenue. (c) The initial assessed value of the zone. (d) The captured assessed value retained within the zone. (e) A description of operating expenditures of the street railway. (8) The state tax commission may institute proceedings to compel enforcement of this section. The state tax commission may promulgate rules necessary for the administration of this section under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. (9) As used in this section: (a) "Assessed value" means the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. (b) "Captured assessed value" means the amount in any 1 year by which the current assessed value of a zone, including the assessed value of property for which specific local taxes are paid in lieu of property taxes, exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. (c) "Initial assessed value" means the assessed value of all the taxable property within the boundaries of a zone at the time when the tax increment financing plan is approved, as shown by the most recent equalized assessment roll of the city, village, or township at the time when an agreement is approved under this section. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered to be property that is exempt from taxation. (d) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. (e) "Specific local tax" means a tax levied under 1974 PA 198, 1976 PA 430, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, the commercial rehabilitation act, 2005 PA 210, MCL 207.841 to 207.856, the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786, the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (f) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the zone. Tax increment revenues do not include any of the following: (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. (ii) Taxes levied by local or intermediate school districts. (iii) Taxes levied by a library established by 1901 LA 359. (iv) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. (v) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. (vi) Ad valorem property taxes exempted from capture under this section or specific local taxes attributable to the ad valorem property taxes. (vii) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. (viii) Ad valorem taxes captured on property in a zone by any of the following authorities if the taxes were captured on the date that the property became subject to a tax increment financing plan under this section by any of the following authorities: (A) A downtown development authority created under 1975 PA 197, MCL 125.1651 to 125.1681.under part 2. (B) A water resource improvement tax increment finance authority created under the water resource improvement tax increment finance authority act, 2008 PA 94, MCL 125.1771 to 125.1794.under part 7. (C) A tax increment finance authority under the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830.part 3. (D) A local development finance authority created under the local development finance authority act, 1986 PA 281, MCL 125.2151 to 125.2174.under part 4. (E) A brownfield redevelopment finance authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672.125.2670. (F) A historical neighborhood tax increment finance authority created under the historical neighborhood tax increment finance authority act, under former 2004 PA 530. , MCL 125.2841 to 125.2866. (G) A corridor improvement authority created under the corridor improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.under part 6. (H) A neighborhood improvement authority created under the neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to 125.2932.under part 8. (ix) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (x) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (g) "Zone" means a transit operations finance zone established under this section. Sec. 603. As used in this part: (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. (c) "Public facility" means a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, sidewalk, trail, lighting, traffic flow modification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, transit-oriented development, transit-oriented facility, or building, including access routes, that are either designed and dedicated to use by the public generally or used by a public agency, or that are located in a qualified development area and are for the benefit of or for the protection of the health, welfare, or safety of the public generally, whether or not used by 1 or more business entities, provided that if any road, street, or bridge shall be is continuously open to public access and that other property shall be is located in public easements or rights-of-way and designed to accommodate foreseeable development of public facilities in adjoining areas. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier-free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. (d) "Qualified development area" means a development area that meets 1 of the following: (i) All of the following: (A) Is located within a city with a population of 700,000 or more. (B) Contains at least not less than 30 contiguous acres. (C) Was owned by this state on December 31, 2003 and was conveyed to a private owner before June 30, 2004. (D) Is zoned to allow for mixed use that includes commercial use and that may include residential use. (E) Otherwise complies with the requirements of section 605(a), (d), (e), and (g). (F) Construction within the qualified development area begins on or before the date 2 years after the effective date of the amendatory act that added this subdivision. (G) Is located in a distressed area. (ii) Contains transit-oriented development or a transit-oriented facility. (e) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (f) "State fiscal year" means the annual period commencing October 1 of each year. (g) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Except as otherwise provided in section 29, 629, tax increment revenues do not include any of the following: (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. (ii) Taxes levied by local or intermediate school districts. (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. (v) Ad valorem property taxes exempted from capture under section 618(5) or specific local taxes attributable to the ad valorem property taxes. (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (C) Except as otherwise provided in section 618(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (h) "Transit-oriented development" means infrastructional improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. (i) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. (j) "Distressed area" means a local governmental unit that meets all of the following: (i) Has a population of 700,000 or more. (ii) Shows a negative population change from 1970 to the date of the most recent federal decennial census. (iii) Shows an overall increase in the state equalized value of real and personal property of less than the statewide average increase since 1972. (iv) Has a poverty rate, as defined by the most recent federal decennial census, greater than the statewide average. (v) Has had an unemployment rate higher than the statewide average. Sec. 703. As used in this part: (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. (c) "Public facility" means a street, and any improvements to a street, including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, or building, including access routes designed and dedicated to use by the public generally, or used by a public agency, that is related to access to inland lakes or a water resource improvement, or means a water resource improvement. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. (d) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (e) "State fiscal year" means the annual period commencing October 1 of each year. (f) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Tax increment revenues do not include any of the following: (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. (ii) Taxes levied by local or intermediate school districts. (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. (v) Ad valorem property taxes exempted from capture under section 815(5) 715(5) or specific local taxes attributable to the ad valorem property taxes. (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (C) Except as otherwise provided in section 715(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. (g) "Water resource improvement" means enhancement of water quality and water dependent natural resources, including, but not limited to, the following: (i) The elimination of the causes and the proliferation of aquatic nuisance species, as defined in section 3101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.3101. (ii) Sewer systems that service existing structures that have failing on-site disposal systems. (iii) Storm water systems that service existing infrastructure. (iv) Dredging, removal of spoils, or other improvements or maintenance activities that enhance navigability of a waterway. (h) "Water resource improvement district" or "district" means 1 or more of the following: (i) An inland body of water and land that is up to 1 mile from the shoreline of an inland lake that contains 1 or more public access points. (ii) An inland body of water and parcels of land that are contiguous to the shoreline of an inland lake that does not contain a public access point. (iii) The shoreline of a harbor on a Great Lake and 1 or more of the following: (A) Land up to 1 mile from the shoreline of the harbor. (B) A tributary to that Great Lake harbor up to 5 miles upstream from the shoreline of the Great Lake harbor. (C) Land up to 1 mile from each bank of the tributary described in sub-subparagraph (B). Sec. 803. As used in this part: (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. (c) "Public facility" means housing, a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, or building, including access routes designed and dedicated to use by the public generally, or used by a public agency. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. (d) "Residential district" means an area of a municipality where 75% or more of the area is zoned for residential housing. (e) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, 1953 PA 189, MCL 211.181 to 211.182, the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786, or the commercial rehabilitation act, 2005 PA 210, MCL 207.841 to 207.856. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. (f) "State fiscal year" means the annual period commencing October 1 of each year. (g) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Tax increment revenues do not include any of the following: (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. (ii) Taxes levied by local or intermediate school districts. (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. (v) Ad valorem property taxes exempted from capture under section 814(5) or specific local taxes attributable to those ad valorem property taxes. (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. (C) Except as otherwise provided in section 814(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
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| 25 | 25 | | SENATE BILL NO. 784 |
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| 29 | 29 | | A bill to amend 2018 PA 57, entitled |
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| 31 | 31 | | "Recodified tax increment financing act," |
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| 33 | 33 | | by amending sections 201, 301, 402, 523, 603, 703, and 803 (MCL 125.4201, 125.4301, 125.4402, 125.4523, 125.4603, 125.4703, and 125.4803), section 402 as amended by 2023 PA 312. |
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| 35 | 35 | | the people of the state of michigan enact: |
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| 37 | 37 | | Sec. 201. As used in this part: |
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| 39 | 39 | | (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority in anticipation of repayment by the authority. Evidence of the intent to repay an advance may include, includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved prior to before the advance, or a resolution of the authority or the municipality. |
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| 41 | 41 | | (b) "Assessed value" means 1 of the following: |
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| 43 | 43 | | (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. |
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| 45 | 45 | | (ii) For valuations made after December 31, 1994, the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. |
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| 47 | 47 | | (c) "Authority" means a downtown development authority created pursuant to under this part. |
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| 48 | 48 | | |
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| 49 | 49 | | (d) "Board" means the governing body of an authority. |
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| 50 | 50 | | |
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| 51 | 51 | | (e) "Business district" means an area in the downtown of a municipality zoned and used principally for business. |
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| 52 | 52 | | |
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| 53 | 53 | | (f) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the project area, including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in subdivision (aa), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. |
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| 54 | 54 | | |
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| 55 | 55 | | (g) "Catalyst development project" means a project that is located in a municipality with a population greater than 600,000, is designated by the authority as a catalyst development project, and is expected to result in at least not less than $300,000,000.00 of capital investment. There shall must not be no more than 1 catalyst development project designated within each authority. |
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| 56 | 56 | | |
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| 57 | 57 | | (h) "Chief executive officer" means the mayor or city manager of a city, the president or village manager of a village, or the supervisor of a township or, if designated by the township board for purposes of this part, the township superintendent or township manager of a township. |
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| 58 | 58 | | |
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| 59 | 59 | | (i) "Development area" means that area to which a development plan is applicable. |
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| 60 | 60 | | |
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| 61 | 61 | | (j) "Development plan" means that information and those requirements for a development plan set forth in section 217. |
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| 62 | 62 | | |
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| 63 | 63 | | (k) "Development program" means the implementation of the development plan. |
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| 64 | 64 | | |
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| 65 | 65 | | (l) "Downtown district" means that part of an area in a business district that is specifically designated by ordinance of the governing body of the municipality pursuant to under this part. A downtown district may include 1 or more separate and distinct geographic areas in a business district as determined by the municipality if the municipality enters into an agreement with a qualified township under section 203(7) or if the municipality is a city that surrounds another city and that other city lies between the 2 separate and distinct geographic areas. If the downtown district contains more than 1 separate and distinct geographic area in the downtown district, the separate and distinct geographic areas shall be are considered 1 downtown district. |
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| 66 | 66 | | |
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| 67 | 67 | | (m) "Eligible advance" means an advance made before August 19, 1993. |
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| 68 | 68 | | |
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| 69 | 69 | | (n) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. |
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| 70 | 70 | | |
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| 71 | 71 | | (o) "Fire alarm system" means a system designed to detect and annunciate the presence of fire, or by-products of fire. Fire alarm system includes smoke detectors. |
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| 72 | 72 | | |
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| 73 | 73 | | (p) "Fiscal year" means the fiscal year of the authority. |
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| 74 | 74 | | |
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| 75 | 75 | | (q) "Governing body of a municipality" means the elected body of a municipality having legislative powers. |
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| 76 | 76 | | |
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| 77 | 77 | | (r) "Initial assessed value" means the assessed value, as equalized, of all the taxable property within the boundaries of the development area at the time when the ordinance establishing the tax increment financing plan is approved, as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time when the resolution is adopted. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered to be property that is exempt from taxation. The initial assessed value of property for which a specific local tax was paid in lieu of a property tax shall must be determined as provided in subdivision (aa). In the case of If a municipality having a population of less than 35,000 that established an authority prior to before 1985, created a district or districts, and approved a development plan or tax increment financing plan or amendments amendment to a plan , and which plan or tax increment financing plan or amendments to a plan, and which plan that expired by its terms December 31, 1991, the initial assessed value for the purpose of any plan or plan amendment adopted as an extension of the expired plan shall must be determined as if the plan had not expired December 31, 1991. For a development area designated before 1997 in which a renaissance zone has subsequently been designated pursuant to under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, the initial assessed value of the development area otherwise determined under this subdivision shall must be reduced by the amount by which the current assessed value of the development area was reduced in 1997 due to the exemption of property under section 7ff of the general property tax act, 1893 PA 206, MCL 211.7ff, but in no case shall the initial assessed value must not be less than zero. |
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| 78 | 78 | | |
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| 79 | 79 | | (s) "Municipality" means a city, village, or township. |
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| 80 | 80 | | |
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| 81 | 81 | | (t) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default upon on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: |
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| 82 | 82 | | |
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| 83 | 83 | | (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. |
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| 84 | 84 | | |
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| 85 | 85 | | (ii) A management contract or a contract for professional services. |
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| 86 | 86 | | |
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| 87 | 87 | | (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. |
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| 88 | 88 | | |
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| 89 | 89 | | (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. |
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| 90 | 90 | | |
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| 91 | 91 | | (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. |
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| 92 | 92 | | |
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| 93 | 93 | | (u) "On behalf of an authority", in relation to an eligible advance made by a municipality, or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by the municipality, or eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: |
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| 94 | 94 | | |
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| 95 | 95 | | (i) A reimbursement agreement between the municipality and an authority it established. |
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| 96 | 96 | | |
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| 97 | 97 | | (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. |
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| 98 | 98 | | |
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| 99 | 99 | | (iii) A resolution of the authority agreeing to make payments to the incorporating unit. |
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| 100 | 100 | | |
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| 101 | 101 | | (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. |
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| 102 | 102 | | |
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| 103 | 103 | | (v) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. |
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| 104 | 104 | | |
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| 105 | 105 | | (w) "Other protected obligation" means any of the following: |
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| 106 | 106 | | |
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| 107 | 107 | | (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii), (iii), or (iv), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. |
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| 108 | 108 | | |
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| 109 | 109 | | (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before December 31, 1993, for which a contract for final design is entered into by or on behalf of the municipality or authority before March 1, 1994 or for which a written agreement with a developer, titled preferred development agreement, was entered into by or on behalf of the municipality or authority in July 1993. |
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| 110 | 110 | | |
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| 111 | 111 | | (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. |
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| 112 | 112 | | |
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| 113 | 113 | | (iv) An obligation incurred by the authority evidenced by or to finance a contract to purchase real property within a development area or a contract to develop that property within the development area, or both, if all of the following requirements are met: |
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| 114 | 114 | | |
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| 115 | 115 | | (A) The authority purchased the real property in 1993. |
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| 116 | 116 | | |
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| 117 | 117 | | (B) Before June 30, 1995, the authority enters a contract for the development of the real property located within the development area. |
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| 118 | 118 | | |
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| 119 | 119 | | (C) In 1993, the authority or municipality on behalf of the authority received approval for a grant from both of the following: |
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| 120 | 120 | | |
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| 121 | 121 | | (I) The department of natural resources for site reclamation of the real property. |
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| 122 | 122 | | |
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| 123 | 123 | | (II) The department of consumer and industry services for development of the real property. |
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| 124 | 124 | | |
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| 125 | 125 | | (v) An ongoing management or professional services contract with the governing body of a county which that was entered into before March 1, 1994 and which that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. |
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| 126 | 126 | | |
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| 127 | 127 | | (vi) A loan from a municipality to an authority if the loan was approved by the legislative body of the municipality on April 18, 1994. |
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| 128 | 128 | | |
|---|
| 129 | 129 | | (vii) Funds expended to match a grant received by a municipality on behalf of an authority for sidewalk improvements from the Michigan department of transportation if the legislative body of the municipality approved the grant application on April 5, 1993 and the grant was received by the municipality in June 1993. |
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| 130 | 130 | | |
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| 131 | 131 | | (viii) For taxes captured in 1994, an obligation described in this subparagraph issued or incurred to finance a project. An obligation is considered issued or incurred to finance a project described in this subparagraph only if all of the following are met: |
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| 132 | 132 | | |
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| 133 | 133 | | (A) The obligation requires raising capital for the project or paying for the project, whether or not a borrowing is involved. |
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| 134 | 134 | | |
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| 135 | 135 | | (B) The obligation was part of a development plan and the tax increment financing plan was approved by a municipality on May 6, 1991. |
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| 136 | 136 | | |
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| 137 | 137 | | (C) The obligation is in the form of a written memorandum of understanding between a municipality and a public utility dated October 27, 1994. |
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| 138 | 138 | | |
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| 139 | 139 | | (D) The authority or municipality captured school taxes during 1994. |
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| 140 | 140 | | |
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| 141 | 141 | | (ix) An obligation incurred after July 31, 2012 by an authority, municipality, or other governmental unit to pay for costs associated with a catalyst development project. |
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| 142 | 142 | | |
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| 143 | 143 | | (x) "Public facility" means a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, building, and access routes to any of the foregoing, these places, designed and dedicated to use by the public generally, or used by a public agency. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. Public facility also includes the acquisition, construction, improvement, and operation of a building owned or leased by the authority to be used as a retail business incubator. |
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| 144 | 144 | | |
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| 145 | 145 | | (y) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if 1 or more of the following apply: |
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| 146 | 146 | | |
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| 147 | 147 | | (i) The obligation is issued to refund a qualified refunding obligation issued in November 1997 and any subsequent refundings of that obligation issued before January 1, 2010 or the obligation is issued to refund a qualified refunding obligation issued on May 15, 1997 and any subsequent refundings of that obligation issued before January 1, 2010 in an authority in which 1 parcel or group of parcels under common ownership represents 50% or more of the taxable value captured within the tax increment finance district and that will ultimately provide for at least not less than a 40% reduction in the taxable value of the property as part of a negotiated settlement as a result of an appeal filed with the state tax tribunal. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2611, if issued before January 1, 2010. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is hereby extended to 1 year after the final date of maturity of the qualified refunding obligations. |
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| 148 | 148 | | |
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| 149 | 149 | | (ii) The refunding obligation meets both of the following: |
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| 150 | 150 | | |
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| 151 | 151 | | (A) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. |
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| 152 | 152 | | |
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| 153 | 153 | | (B) The net present value of the sum of the tax increment revenues described in subdivision (cc)(ii) and the distributions under section 213b to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (cc)(ii) and the distributions under section 213b to repay the obligation being refunded, as calculated using a method approved by the department of treasury. |
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| 154 | 154 | | |
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| 155 | 155 | | (iii) The obligation is issued to refund an other protected obligation issued as a capital appreciation bond delivered to the Michigan municipal bond authority on December 21, 1994 and any subsequent refundings of that obligation issued before January 1, 2012. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 305(2), (3), (5), and (6), section 501, section 503, or section 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611, if issued before January 1, 2012. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is extended to 1 year after the final date of maturity of the qualified refunding obligations. The obligation may be payable through the year 2025 at an interest rate not exceeding the maximum rate permitted by law, notwithstanding the bond maturity dates contained in the notice of intent to issue bonds published by the municipality. An obligation issued under this subparagraph is a qualified refunding obligation only to the extent that revenues described in subdivision (cc)(ii) and distributions under section 213b to repay the qualified refunding obligation do not exceed $750,000.00. |
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| 156 | 156 | | |
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| 157 | 157 | | (iv) The obligation is issued to refund a qualified refunding obligation issued on February 13, 2008, and any subsequent refundings of that obligation, issued before December 31, 2018. Qualified refunding obligations issued under this subparagraph are not subject to the requirements of section 305(2), (3), (5), and (6), 501, 503, or 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611. The duration of the development program described in the tax increment financing plan relating to the qualified refunding obligations issued under this subparagraph is extended to 1 year after the final date of maturity of the qualified refunding obligations. Revenues described in subdivision (cc)(ii) and distributions made under section 213b in excess of the amount needed for current year debt service on an obligation issued under this subparagraph may be paid to the authority to the extent necessary to pay future years' debt service on the obligation as determined by the board. |
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| 158 | 158 | | |
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| 159 | 159 | | (z) "Qualified township" means a township that meets all of the following requirements: |
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| 160 | 160 | | |
|---|
| 161 | 161 | | (i) Was not eligible to create an authority prior to before January 3, 2005. |
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| 162 | 162 | | |
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| 163 | 163 | | (ii) Adjoins a municipality that previously created an authority. |
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| 164 | 164 | | |
|---|
| 165 | 165 | | (iii) Along with the adjoining municipality that previously created an authority, is a member of the same joint planning commission under the joint municipal planning act, 2003 PA 226, MCL 125.131 to 125.143. |
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| 166 | 166 | | |
|---|
| 167 | 167 | | (aa) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
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| 168 | 168 | | |
|---|
| 169 | 169 | | (bb) "State fiscal year" means the annual period commencing October 1 of each year. |
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| 170 | 170 | | |
|---|
| 171 | 171 | | (cc) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area, subject to the following requirements: |
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| 172 | 172 | | |
|---|
| 173 | 173 | | (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions other than the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. |
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| 174 | 174 | | |
|---|
| 175 | 175 | | (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), to repay eligible advances, eligible obligations, and other protected obligations. |
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| 176 | 176 | | |
|---|
| 177 | 177 | | (iii) Tax increment revenues do not include any of the following: |
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| 178 | 178 | | |
|---|
| 179 | 179 | | (A) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to such those ad valorem property taxes. |
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| 180 | 180 | | |
|---|
| 181 | 181 | | (B) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to such those ad valorem property taxes. |
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| 182 | 182 | | |
|---|
| 183 | 183 | | (C) Ad valorem property taxes exempted from capture under section 203(3) or specific local taxes attributable to such those ad valorem property taxes. |
|---|
| 184 | 184 | | |
|---|
| 185 | 185 | | (D) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 186 | 186 | | |
|---|
| 187 | 187 | | (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 188 | 188 | | |
|---|
| 189 | 189 | | (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
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| 190 | 190 | | |
|---|
| 191 | 191 | | (III) Except as otherwise provided in section 203(3), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
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| 192 | 192 | | |
|---|
| 193 | 193 | | (E) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
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| 194 | 194 | | |
|---|
| 195 | 195 | | (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii) or (v), and required to be transmitted to the authority under section 214(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, a local school district or an intermediate school district upon on the captured assessed value of real and personal property in a development area shall must be determined separately for the levy by the this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): |
|---|
| 196 | 196 | | |
|---|
| 197 | 197 | | (A) The percentage that the total ad valorem taxes and specific local taxes available for distribution by law to the this state, a local school district, or an intermediate school district, respectively, bears to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to the this state, each local school district, and each intermediate school district. |
|---|
| 198 | 198 | | |
|---|
| 199 | 199 | | (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii) or (v). |
|---|
| 200 | 200 | | |
|---|
| 201 | 201 | | (v) Tax increment revenues include ad valorem property taxes and specific local taxes, in an annual amount and for each year approved by the state treasurer, attributable to the levy by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and by local or intermediate school districts, upon on the captured assessed value of real and personal property in the development area of an authority established in a city with a population of 600,000 or more to pay for, or reimburse an advance for, not more than $8,000,000.00 for the demolition of buildings or structures on public or privately owned property within a development area that commences in 2005, or to pay the annual principal of or interest on an obligation, the terms of which are approved by the state treasurer, issued by an authority, or by a city on behalf of an authority, to pay not more than $8,000,000.00 of the costs to demolish buildings or structures on public or privately owned property within a development area that commences in 2005. |
|---|
| 202 | 202 | | |
|---|
| 203 | 203 | | (vi) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the levy by this state under the state education tax act, 1993 PA 331, MCL 211.201 211.901 to 211.906, and by local or intermediate school districts which that were levied on or after July 1, 2010, upon on the captured assessed value of real and personal property in the development area of an authority established in a city with a population of 600,000 or more to pay for, or reimburse an advance for, costs associated with the land acquisition, preliminary site work, and construction of a catalyst development project. |
|---|
| 204 | 204 | | |
|---|
| 205 | 205 | | Sec. 301. As used in this part: |
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| 206 | 206 | | |
|---|
| 207 | 207 | | (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority. Evidence of the intent to repay an advance is required and may include, includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved before the advance or before August 14, 1993, or a resolution of the authority or the municipality. |
|---|
| 208 | 208 | | |
|---|
| 209 | 209 | | (b) "Assessed value" means 1 of the following: |
|---|
| 210 | 210 | | |
|---|
| 211 | 211 | | (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. |
|---|
| 212 | 212 | | |
|---|
| 213 | 213 | | (ii) For valuations made after December 31, 1994, taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. |
|---|
| 214 | 214 | | |
|---|
| 215 | 215 | | (c) "Authority" means a tax increment finance authority created under this part. |
|---|
| 216 | 216 | | |
|---|
| 217 | 217 | | (d) "Authority district" means that area within which an authority exercises its powers and within which 1 or more development areas may exist. |
|---|
| 218 | 218 | | |
|---|
| 219 | 219 | | (e) "Board" means the governing body of an authority. |
|---|
| 220 | 220 | | |
|---|
| 221 | 221 | | (f) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the development area, including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in subdivision (w), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. |
|---|
| 222 | 222 | | |
|---|
| 223 | 223 | | (g) "Chief executive officer" means the mayor or city manager of a city, the president of a village, or the supervisor of a township. |
|---|
| 224 | 224 | | |
|---|
| 225 | 225 | | (h) "Development area" means that area to which a development plan is applicable. |
|---|
| 226 | 226 | | |
|---|
| 227 | 227 | | (i) "Development area citizens council" or "council" means that advisory body established pursuant to under section 20.320. |
|---|
| 228 | 228 | | |
|---|
| 229 | 229 | | (j) "Development plan" means that information and those requirements for a development set forth in section 16.316. |
|---|
| 230 | 230 | | |
|---|
| 231 | 231 | | (k) "Development program" means the implementation of the development plan. |
|---|
| 232 | 232 | | |
|---|
| 233 | 233 | | (l) "Eligible advance" means an advance made before August 19, 1993. |
|---|
| 234 | 234 | | |
|---|
| 235 | 235 | | (m) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. Eligible obligation also includes an ongoing management contract or contract for professional services or development services that was entered into by the authority or a municipality on behalf of the authority in 1991, and related similar written agreements executed before 1984, if the 1991 agreement both provides for automatic annual renewal and incorporates by reference the prior related agreements. ; however, However, receipt by an authority of tax increment revenues authorized under subdivision (aa)(ii) in order to pay costs arising under those contracts shall be is limited to the following: |
|---|
| 236 | 236 | | |
|---|
| 237 | 237 | | (i) For taxes levied before July 1, 2005, the amount permitted to be received by an authority for an eligible obligation as provided in this part. |
|---|
| 238 | 238 | | |
|---|
| 239 | 239 | | (ii) For taxes levied after June 30, 2005 and before July 1, 2006, $3,000,000.00. |
|---|
| 240 | 240 | | |
|---|
| 241 | 241 | | (iii) For taxes levied after June 30, 2006 and before July 1, 2007, $3,000,000.00. |
|---|
| 242 | 242 | | |
|---|
| 243 | 243 | | (iv) For taxes levied after June 30, 2007 and before July 1, 2008, $3,000,000.00. |
|---|
| 244 | 244 | | |
|---|
| 245 | 245 | | (v) For taxes levied after June 30, 2008 and before July 1, 2009, $3,000,000.00. |
|---|
| 246 | 246 | | |
|---|
| 247 | 247 | | (vi) For taxes levied after June 30, 2009 and before July 1, 2010, $3,000,000.00. |
|---|
| 248 | 248 | | |
|---|
| 249 | 249 | | (vii) For taxes levied after June 30, 2010 and before July 1, 2011, $2,650,000.00. |
|---|
| 250 | 250 | | |
|---|
| 251 | 251 | | (viii) For taxes levied after June 30, 2011 and before July 1, 2012, $2,400,000.00. |
|---|
| 252 | 252 | | |
|---|
| 253 | 253 | | (ix) For taxes levied after June 30, 2012 and before July 1, 2013, $2,125,000.00. |
|---|
| 254 | 254 | | |
|---|
| 255 | 255 | | (x) For taxes levied after June 30, 2013 and before July 1, 2014, $1,500,000.00. |
|---|
| 256 | 256 | | |
|---|
| 257 | 257 | | (xi) For taxes levied after June 30, 2014 and before July 1, 2015, $1,150,000.00. |
|---|
| 258 | 258 | | |
|---|
| 259 | 259 | | (xii) For taxes levied after June 30, 2015, $0.00. |
|---|
| 260 | 260 | | |
|---|
| 261 | 261 | | (n) "Fiscal year" means the fiscal year of the authority. |
|---|
| 262 | 262 | | |
|---|
| 263 | 263 | | (o) "Governing body" means the elected body of a municipality having legislative powers. |
|---|
| 264 | 264 | | |
|---|
| 265 | 265 | | (p) "Initial assessed value" means the assessed value, as equalized, of all the taxable property within the boundaries of the development area at the time when the resolution establishing the tax increment financing plan is approved as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time when the resolution is adopted. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered property that is exempt from taxation. The initial assessed value of property for which a specific tax was paid in lieu of a property tax shall must be determined as provided in subdivision (w). |
|---|
| 266 | 266 | | |
|---|
| 267 | 267 | | (q) "Municipality" means a city. |
|---|
| 268 | 268 | | |
|---|
| 269 | 269 | | (r) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default upon on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: |
|---|
| 270 | 270 | | |
|---|
| 271 | 271 | | (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. |
|---|
| 272 | 272 | | |
|---|
| 273 | 273 | | (ii) A management contract or a contract for professional services. |
|---|
| 274 | 274 | | |
|---|
| 275 | 275 | | (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. |
|---|
| 276 | 276 | | |
|---|
| 277 | 277 | | (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. |
|---|
| 278 | 278 | | |
|---|
| 279 | 279 | | (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. |
|---|
| 280 | 280 | | |
|---|
| 281 | 281 | | (s) "On behalf of an authority", in relation to an eligible advance made by a municipality, or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by a municipality, or the eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: |
|---|
| 282 | 282 | | |
|---|
| 283 | 283 | | (i) A reimbursement agreement between the municipality and an authority it established. |
|---|
| 284 | 284 | | |
|---|
| 285 | 285 | | (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. |
|---|
| 286 | 286 | | |
|---|
| 287 | 287 | | (iii) A resolution of the authority agreeing to make payments to the incorporating unit. |
|---|
| 288 | 288 | | |
|---|
| 289 | 289 | | (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. |
|---|
| 290 | 290 | | |
|---|
| 291 | 291 | | (t) "Other protected obligation" means any of the following: |
|---|
| 292 | 292 | | |
|---|
| 293 | 293 | | (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii) or (iii), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. |
|---|
| 294 | 294 | | |
|---|
| 295 | 295 | | (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before December 31, 1993, for which a contract for final design is entered into by the municipality or authority before March 1, 1994. |
|---|
| 296 | 296 | | |
|---|
| 297 | 297 | | (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. |
|---|
| 298 | 298 | | |
|---|
| 299 | 299 | | (iv) An obligation issued or incurred by an authority or by a municipality on behalf of an authority to implement a project described in a tax increment finance plan approved by the municipality in accordance with this part before August 19, 1993, that is located on land owned by a public university on the date the tax increment financing plan is approved, and for which a contract for final design is entered into before December 31, 1993. |
|---|
| 300 | 300 | | |
|---|
| 301 | 301 | | (v) An ongoing management or professional services contract with the governing body of a county which that was entered into before March 1, 1994 and which that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. |
|---|
| 302 | 302 | | |
|---|
| 303 | 303 | | (vi) An obligation issued or incurred by a municipality under a contract executed on December 19, 1994 as subsequently amended between the municipality and the authority to implement a project described in a tax increment finance plan approved by the municipality under this part before August 19, 1993 for which a contract for final design was entered into by the municipality before March 1, 1994 provided that if final payment by the municipality is made on or before December 31, 2001. |
|---|
| 304 | 304 | | |
|---|
| 305 | 305 | | (vii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority that meets all of the following qualifications: |
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| 306 | 306 | | |
|---|
| 307 | 307 | | (A) The obligation is issued or incurred to finance a project described in a tax increment financing plan approved before August 19, 1993 by a municipality in accordance with this part. |
|---|
| 308 | 308 | | |
|---|
| 309 | 309 | | (B) The obligation qualifies as an other protected obligation under subparagraph (ii) and was issued or incurred by the authority before December 31, 1994 for the purpose of financing the project. |
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| 310 | 310 | | |
|---|
| 311 | 311 | | (C) A portion of the obligation issued or incurred by the authority before December 31, 1994 for the purpose of financing the project was retired prior to before December 31, 1996. |
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| 312 | 312 | | |
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| 313 | 313 | | (D) The obligation does not exceed the dollar amount of the portion of the obligation retired prior to before December 31, 1996. |
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| 314 | 314 | | |
|---|
| 315 | 315 | | (viii) An obligation incurred by an authority that meets both of the following qualifications: |
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| 316 | 316 | | |
|---|
| 317 | 317 | | (A) The obligation is a contract of lease originally executed on December 20, 1994 between the municipality and the authority to partially implement the authority's development plan and tax increment financing plan. |
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| 318 | 318 | | |
|---|
| 319 | 319 | | (B) The obligation qualifies as an obligation under subparagraph (ii). The obligation described in this subparagraph may be amended to extend cash rental payments for a period not to exceed 30 years through the year 2039. The duration of the development plan and tax increment financing plan described in this subparagraph is extended to 1 year after the final date that the extended cash rental payments are due. |
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| 320 | 320 | | |
|---|
| 321 | 321 | | (u) "Public facility" means 1 or more of the following: |
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| 322 | 322 | | |
|---|
| 323 | 323 | | (i) A street, plaza, or pedestrian mall, and any improvements to a street, plaza, boulevard, alley, or pedestrian mall, including street furniture and beautification, a park, parking facility, recreation facility, playground, school, library, public institution or administration building, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipeline, transit-oriented development, transit-oriented facility, and other similar facilities and necessary easements of these facilities designed and dedicated to use by the public generally or used by a public agency. As used in this subparagraph, public "public institution or administration building building" includes, but is not limited to, a police station, fire station, court building, or other public safety facility. |
|---|
| 324 | 324 | | |
|---|
| 325 | 325 | | (ii) The acquisition and disposal of real and personal property or interests in real and personal property, demolition of structures, site preparation, relocation costs, building rehabilitation, and all associated administrative costs, including, but not limited to, architect's, engineer's, legal, and accounting fees as contained in the resolution establishing the district's development plan. |
|---|
| 326 | 326 | | |
|---|
| 327 | 327 | | (iii) An improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. |
|---|
| 328 | 328 | | |
|---|
| 329 | 329 | | (v) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if 1 of the following applies: |
|---|
| 330 | 330 | | |
|---|
| 331 | 331 | | (i) The refunding obligation meets both of the following: |
|---|
| 332 | 332 | | |
|---|
| 333 | 333 | | (A) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. |
|---|
| 334 | 334 | | |
|---|
| 335 | 335 | | (B) The net present value of the sum of the tax increment revenues described in subdivision (aa)(ii) and the distributions under section 12a 312a to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (aa)(ii) and the distributions under section 312a to repay the obligation being refunded, as calculated using a method approved by the department of treasury. |
|---|
| 336 | 336 | | |
|---|
| 337 | 337 | | (ii) The refunding obligation is a tax increment refunding bond issued to refund a refunding bond that is an other protected obligation issued as a capital appreciation bond delivered to the Michigan municipal bond authority on December 21, 1994, or bonds issued to refund that bond, and the authority, by resolution of its board, authorized issuance of the refunding obligation before December 31, 2019 with a final maturity not later than 2039. The municipality by majority vote of the members of its governing body may pledge its full faith and credit for the payment of the principal of and interest on the refunding obligation. A refunding obligation issued under this subparagraph is not subject to the requirements of section 305(2), (3), (5), or (6), 501, 503, or 611 of the revised municipal finance act, 2001 PA 34, MCL 141.2305, 141.2501, 141.2503, and 141.2611. The duration of the development plan and the tax increment financing plan relating to the refunding obligations described in this subparagraph is extended to 1 year after the final date of maturity of the refunding obligation. |
|---|
| 338 | 338 | | |
|---|
| 339 | 339 | | (w) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
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| 340 | 340 | | |
|---|
| 341 | 341 | | (x) "State fiscal year" means the annual period commencing October 1 of each year. |
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| 342 | 342 | | |
|---|
| 343 | 343 | | (y) "Tax increment district" or "district" means that area to which the tax increment finance plan pertains. |
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| 344 | 344 | | |
|---|
| 345 | 345 | | (z) "Tax increment financing plan" means that information and those requirements set forth in sections 313 to 315. |
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| 346 | 346 | | |
|---|
| 347 | 347 | | (aa) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area, subject to the following requirements: |
|---|
| 348 | 348 | | |
|---|
| 349 | 349 | | (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions other than the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. |
|---|
| 350 | 350 | | |
|---|
| 351 | 351 | | (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), to repay eligible advances, eligible obligations, and other protected obligations. |
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| 352 | 352 | | |
|---|
| 353 | 353 | | (iii) Tax increment revenues do not include any of the following: |
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| 354 | 354 | | |
|---|
| 355 | 355 | | (A) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to such those ad valorem property taxes. |
|---|
| 356 | 356 | | |
|---|
| 357 | 357 | | (B) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to such those ad valorem property taxes. |
|---|
| 358 | 358 | | |
|---|
| 359 | 359 | | (C) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 360 | 360 | | |
|---|
| 361 | 361 | | (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 362 | 362 | | |
|---|
| 363 | 363 | | (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
|---|
| 364 | 364 | | |
|---|
| 365 | 365 | | (III) Except as otherwise provided in section 303(6), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
|---|
| 366 | 366 | | |
|---|
| 367 | 367 | | (D) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
|---|
| 368 | 368 | | |
|---|
| 369 | 369 | | (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii), and required to be transmitted to the authority under section 314(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, a local school district or an intermediate school district upon on the captured assessed value of real and personal property in a development area shall must be determined separately for the levy by the this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): |
|---|
| 370 | 370 | | |
|---|
| 371 | 371 | | (A) The percentage which the total ad valorem taxes and specific local taxes available for distribution by law to the this state, a local school district, or an intermediate school district, respectively, bear to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to the this state, each local school district, and each intermediate school district. |
|---|
| 372 | 372 | | |
|---|
| 373 | 373 | | (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii). |
|---|
| 374 | 374 | | |
|---|
| 375 | 375 | | (bb) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. |
|---|
| 376 | 376 | | |
|---|
| 377 | 377 | | (cc) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. |
|---|
| 378 | 378 | | |
|---|
| 379 | 379 | | Sec. 402. As used in this part: |
|---|
| 380 | 380 | | |
|---|
| 381 | 381 | | (a) "Advance" means a transfer of funds made by a municipality to an authority or to another person on behalf of the authority in anticipation of repayment by the authority. Evidence of the intent to repay an advance includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan approved before the advance, or a resolution of the authority or the municipality. |
|---|
| 382 | 382 | | |
|---|
| 383 | 383 | | (b) "Alternative energy technology" means equipment, component parts, materials, electronic devices, testing equipment, and related systems that are specifically designed, specifically fabricated, and used primarily for 1 or more of the following: |
|---|
| 384 | 384 | | |
|---|
| 385 | 385 | | (i) The storage, generation, reformation, or distribution of clean fuels integrated within an alternative energy system or alternative energy vehicle, not including an anaerobic digester energy system or a hydroelectric energy system, for use within the alternative energy system or alternative energy vehicle. |
|---|
| 386 | 386 | | |
|---|
| 387 | 387 | | (ii) The process of generating and putting into a usable form the energy generated by an alternative energy system. Alternative energy technology does not include those component parts of an alternative energy system that are required regardless of the energy source. |
|---|
| 388 | 388 | | |
|---|
| 389 | 389 | | (iii) Research and development of an alternative energy vehicle. |
|---|
| 390 | 390 | | |
|---|
| 391 | 391 | | (iv) Research, development, and manufacturing of an alternative energy system. |
|---|
| 392 | 392 | | |
|---|
| 393 | 393 | | (v) Research, development, and manufacturing of an anaerobic digester energy system. |
|---|
| 394 | 394 | | |
|---|
| 395 | 395 | | (vi) Research, development, and manufacturing of a hydroelectric energy system. |
|---|
| 396 | 396 | | |
|---|
| 397 | 397 | | (c) "Alternative energy technology business" means a business engaged in the research, development, or manufacturing of alternative energy technology or a business located in an authority district that includes a military installation that was operated by the United States Department of Defense and closed after 1980. |
|---|
| 398 | 398 | | |
|---|
| 399 | 399 | | (d) "Assessed value" means 1 of the following: |
|---|
| 400 | 400 | | |
|---|
| 401 | 401 | | (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. |
|---|
| 402 | 402 | | |
|---|
| 403 | 403 | | (ii) For valuations made after December 31, 1994, the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. |
|---|
| 404 | 404 | | |
|---|
| 405 | 405 | | (e) "Authority" means a local development finance authority created under this part. |
|---|
| 406 | 406 | | |
|---|
| 407 | 407 | | (f) "Authority district" means an area or areas within which an authority exercises its powers. |
|---|
| 408 | 408 | | |
|---|
| 409 | 409 | | (g) "Board" means the governing body of an authority. |
|---|
| 410 | 410 | | |
|---|
| 411 | 411 | | (h) "Business development area" means an area designated as a certified industrial park under this part before June 29, 2000, or an area designated in the tax increment financing plan that meets all of the following requirements: |
|---|
| 412 | 412 | | |
|---|
| 413 | 413 | | (i) The area is zoned to allow its use for eligible property. |
|---|
| 414 | 414 | | |
|---|
| 415 | 415 | | (ii) The area has a site plan or plat approved by the city, village, or township in which the area is located. |
|---|
| 416 | 416 | | |
|---|
| 417 | 417 | | (i) "Business incubator" means real and personal property that meets all of the following requirements: |
|---|
| 418 | 418 | | |
|---|
| 419 | 419 | | (i) Is located in a certified technology park or a certified alternative energy park. |
|---|
| 420 | 420 | | |
|---|
| 421 | 421 | | (ii) Is subject to an agreement under section 412a or 412c. |
|---|
| 422 | 422 | | |
|---|
| 423 | 423 | | (iii) Is developed for the primary purpose of attracting 1 or more owners or tenants who will engage in activities that would each separately qualify the property as eligible property under subdivision (s)(iii). |
|---|
| 424 | 424 | | |
|---|
| 425 | 425 | | (j) "Captured assessed value" means the amount in any 1 year by which the current assessed value of the eligible property identified in the tax increment financing plan or, for a certified technology park, a certified alternative energy park, or a next Michigan development area, the real and personal property included in the tax increment financing plan, including the current assessed value of property for which specific local taxes are paid in lieu of property taxes as determined pursuant to subdivision (hh), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. Except as otherwise provided in this part, tax abated property in a renaissance zone as defined under section 3 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2683, must be excluded from the calculation of captured assessed value to the extent that the property is exempt from ad valorem property taxes or specific local taxes. |
|---|
| 426 | 426 | | |
|---|
| 427 | 427 | | (k) "Certified alternative energy park" means that portion of an authority district designated by a written agreement entered into under section 412c between the authority, the municipality or municipalities, and the Michigan economic development corporation. |
|---|
| 428 | 428 | | |
|---|
| 429 | 429 | | (l) "Certified business park" means a business development area that has been designated by the Michigan economic development corporation as meeting criteria established by the Michigan economic development corporation. The criteria shall establish standards for business development areas including, but not limited to, use, types of building materials, landscaping, setbacks, parking, storage areas, and management. |
|---|
| 430 | 430 | | |
|---|
| 431 | 431 | | (m) "Certified technology park" means that portion of the authority district designated by a written agreement entered into under section 412a between the authority, the municipality, and the Michigan economic development corporation. |
|---|
| 432 | 432 | | |
|---|
| 433 | 433 | | (n) "Chief executive officer" means the mayor or city manager of a city, the president of a village, or, for other local units of government or school districts, the person charged by law with the supervision of the functions of the local unit of government or school district. |
|---|
| 434 | 434 | | |
|---|
| 435 | 435 | | (o) "Development plan" means that information and those requirements for a development set forth in section 415. |
|---|
| 436 | 436 | | |
|---|
| 437 | 437 | | (p) "Development program" means the implementation of a development plan. |
|---|
| 438 | 438 | | |
|---|
| 439 | 439 | | (q) "Eligible advance" means an advance made before August 19, 1993. |
|---|
| 440 | 440 | | |
|---|
| 441 | 441 | | (r) "Eligible obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority before August 19, 1993 and its subsequent refunding by a qualified refunding obligation. Eligible obligation includes an authority's written agreement entered into before August 19, 1993 to pay an obligation issued after August 18, 1993 and before December 31, 1996 by another entity on behalf of the authority. |
|---|
| 442 | 442 | | |
|---|
| 443 | 443 | | (s) "Eligible property" means land improvements, buildings, structures, and other real property, and machinery, equipment, furniture, and fixtures, or any part or accessory of these items whether completed or in the process of construction comprising an integrated whole, located within an authority district, of which the primary purpose and use is or will be 1 of the following: |
|---|
| 444 | 444 | | |
|---|
| 445 | 445 | | (i) The manufacture of goods or materials or the processing of goods or materials by physical or chemical change. |
|---|
| 446 | 446 | | |
|---|
| 447 | 447 | | (ii) Agricultural processing. |
|---|
| 448 | 448 | | |
|---|
| 449 | 449 | | (iii) A high technology activity. |
|---|
| 450 | 450 | | |
|---|
| 451 | 451 | | (iv) The production of energy by the processing of goods or materials by physical or chemical change by a small power production facility as defined by the Federal Energy Regulatory Commission under the public utility regulatory policies act of 1978, Public Law 95-617, which facility is fueled primarily by biomass or wood waste. This part does not affect a person's rights or liabilities under law with respect to groundwater contamination described in this subparagraph. This subparagraph applies only if all of the following requirements are met: |
|---|
| 452 | 452 | | |
|---|
| 453 | 453 | | (A) Tax increment revenues captured from the eligible property will be used to finance, or will be pledged for debt service on tax increment bonds used to finance, a public facility in or near the authority district designed to reduce, eliminate, or prevent the spread of identified soil and groundwater contamination, pursuant to law. |
|---|
| 454 | 454 | | |
|---|
| 455 | 455 | | (B) The board of the authority exercising powers within the authority district where the eligible property is located adopted an initial tax increment financing plan between January 1, 1991 and May 1, 1991. |
|---|
| 456 | 456 | | |
|---|
| 457 | 457 | | (C) The municipality that created the authority establishes a special assessment district whereby not less than 50% of the operating expenses of the public facility described in this subparagraph will be paid for by special assessments. Not less than 50% of the amount specially assessed against all parcels in the special assessment district must be assessed against parcels owned by parties potentially responsible for the identified groundwater contamination pursuant to law. |
|---|
| 458 | 458 | | |
|---|
| 459 | 459 | | (v) A business incubator. |
|---|
| 460 | 460 | | |
|---|
| 461 | 461 | | (vi) An alternative energy technology business. |
|---|
| 462 | 462 | | |
|---|
| 463 | 463 | | (vii) A transit-oriented facility. |
|---|
| 464 | 464 | | |
|---|
| 465 | 465 | | (viii) A transit-oriented development. |
|---|
| 466 | 466 | | |
|---|
| 467 | 467 | | (ix) An eligible next Michigan business, as that term is defined in section 3 of the Michigan economic growth authority act, 1995 PA 24, MCL 207.803, and other businesses within a next Michigan development area, but only to the extent designated as eligible property within a development plan approved by a next Michigan development corporation. |
|---|
| 468 | 468 | | |
|---|
| 469 | 469 | | (t) "Fiscal year" means the fiscal year of the authority. |
|---|
| 470 | 470 | | |
|---|
| 471 | 471 | | (u) "Governing body" means, except as otherwise provided in this subdivision, the elected body having legislative powers of a municipality creating an authority under this part. For a next Michigan development corporation, governing body means the executive committee of the next Michigan development corporation, unless otherwise provided in the interlocal agreement or articles of incorporation creating the next Michigan development corporation or the governing body of an eligible urban entity or its designee as provided in the next Michigan development act, 2010 PA 275, MCL 125.2951 to 125.2959. |
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| 472 | 472 | | |
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| 473 | 473 | | (v) "High-technology activity" means that term as defined in section 3 of the Michigan economic growth authority act, 1995 PA 24, MCL 207.803. |
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| 474 | 474 | | |
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| 475 | 475 | | (w) "Initial assessed value" means the assessed value of the eligible property identified in the tax increment financing plan or, for a certified technology park, a certified alternative energy park, or a next Michigan development area, the assessed value of any real and personal property included in the tax increment financing plan, when the resolution establishing the tax increment financing plan is approved as shown by the most recent assessment roll for which equalization has been completed when the resolution is adopted or, for property that becomes eligible property in other than a certified technology park or a certified alternative energy park after the date the plan is approved, when the property becomes eligible property. Property exempt from taxation when the initial assessed value is determined must be included as zero. Property for which a specific local tax is paid in lieu of property tax is not considered exempt from taxation. The initial assessed value of property for which a specific local tax was paid in lieu of property tax is determined as provided in subdivision (hh). |
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| 476 | 476 | | |
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| 477 | 477 | | (x) "Michigan economic development corporation" means the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999 between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund. If the Michigan economic development corporation is unable for any reason to perform its duties under this part, those duties may be exercised by the Michigan strategic fund. |
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| 478 | 478 | | |
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| 479 | 479 | | (y) "Michigan strategic fund" means the Michigan strategic fund as described in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094. |
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| 480 | 480 | | |
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| 481 | 481 | | (z) "Municipality" means a city, village, or urban township. However, for purposes of creating and operating a certified alternative energy park or a certified technology park, municipality includes townships that are not urban townships. |
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| 482 | 482 | | |
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| 483 | 483 | | (aa) "Next Michigan development area" means a portion of an authority district designated by a next Michigan development corporation under section 412e to which a development plan is applicable. |
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| 484 | 484 | | |
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| 485 | 485 | | (bb) "Next Michigan development corporation" means that term as defined in section 3 of the next Michigan development act, 2010 PA 275, MCL 125.2953. |
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| 486 | 486 | | |
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| 487 | 487 | | (cc) "Obligation" means a written promise to pay, whether evidenced by a contract, agreement, lease, sublease, bond, or note, or a requirement to pay imposed by law. An obligation does not include a payment required solely because of default on an obligation, employee salaries, or consideration paid for the use of municipal offices. An obligation does not include those bonds that have been economically defeased by refunding bonds issued under this part. Obligation includes, but is not limited to, the following: |
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| 488 | 488 | | |
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| 489 | 489 | | (i) A requirement to pay proceeds derived from ad valorem property taxes or taxes levied in lieu of ad valorem property taxes. |
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| 490 | 490 | | |
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| 491 | 491 | | (ii) A management contract or a contract for professional services. |
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| 492 | 492 | | |
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| 493 | 493 | | (iii) A payment required on a contract, agreement, bond, or note if the requirement to make or assume the payment arose before August 19, 1993. |
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| 494 | 494 | | |
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| 495 | 495 | | (iv) A requirement to pay or reimburse a person for the cost of insurance for, or to maintain, property subject to a lease, land contract, purchase agreement, or other agreement. |
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| 496 | 496 | | |
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| 497 | 497 | | (v) A letter of credit, paying agent, transfer agent, bond registrar, or trustee fee associated with a contract, agreement, bond, or note. |
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| 498 | 498 | | |
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| 499 | 499 | | (dd) "On behalf of an authority", in relation to an eligible advance made by a municipality or an eligible obligation or other protected obligation issued or incurred by a municipality, means in anticipation that an authority would transfer tax increment revenues or reimburse the municipality from tax increment revenues in an amount sufficient to fully make payment required by the eligible advance made by a municipality, or eligible obligation or other protected obligation issued or incurred by the municipality, if the anticipation of the transfer or receipt of tax increment revenues from the authority is pursuant to or evidenced by 1 or more of the following: |
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| 500 | 500 | | |
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| 501 | 501 | | (i) A reimbursement agreement between the municipality and an authority it established. |
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| 502 | 502 | | |
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| 503 | 503 | | (ii) A requirement imposed by law that the authority transfer tax increment revenues to the municipality. |
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| 504 | 504 | | |
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| 505 | 505 | | (iii) A resolution of the authority agreeing to make payments to the incorporating unit. |
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| 506 | 506 | | |
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| 507 | 507 | | (iv) Provisions in a tax increment financing plan describing the project for which the obligation was incurred. |
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| 508 | 508 | | |
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| 509 | 509 | | (ee) "Other protected obligation" means: |
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| 510 | 510 | | |
|---|
| 511 | 511 | | (i) A qualified refunding obligation issued to refund an obligation described in subparagraph (ii) or (iii), an obligation that is not a qualified refunding obligation that is issued to refund an eligible obligation, or a qualified refunding obligation issued to refund an obligation described in this subparagraph. |
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| 512 | 512 | | |
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| 513 | 513 | | (ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before August 19, 1993, for which a contract for final design is entered into by the municipality or authority before March 1, 1994. |
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| 514 | 514 | | |
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| 515 | 515 | | (iii) An obligation incurred by an authority or municipality after August 19, 1993, to reimburse a party to a development agreement entered into by a municipality or authority before August 19, 1993, for a project described in a tax increment financing plan approved in accordance with this part before August 19, 1993, and undertaken and installed by that party in accordance with the development agreement. |
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| 516 | 516 | | |
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| 517 | 517 | | (iv) An ongoing management or professional services contract with the governing body of a county that was entered into before March 1, 1994 and that was preceded by a series of limited term management or professional services contracts with the governing body of the county, the last of which was entered into before August 19, 1993. |
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| 518 | 518 | | |
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| 519 | 519 | | (ff) "Public facility" means 1 or more of the following: |
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| 520 | 520 | | |
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| 521 | 521 | | (i) A street, road, bridge, storm water or sanitary sewer, sewage treatment facility, facility designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, retention basin, pretreatment facility, waterway, waterline, water storage facility, rail line, electric, gas, telephone or other communications, or any other type of utility line or pipeline, transit-oriented facility, transit-oriented development, or other similar or related structure or improvement, together with necessary easements for the structure or improvement. Except for rail lines, utility lines, or pipelines, the structures or improvements described in this subparagraph must be either owned or used by a public agency, functionally connected to similar or supporting facilities owned or used by a public agency, or designed and dedicated to use by, for the benefit of, or for the protection of the health, welfare, or safety of the public generally, whether or not used by a single business entity. Any road, street, or bridge must be continuously open to public access. A public facility must be located on public property or in a public, utility, or transportation easement or right-of-way. |
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| 522 | 522 | | |
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| 523 | 523 | | (ii) The acquisition and disposal of land that is proposed or intended to be used in the development of eligible property or an interest in that land, demolition of structures, site preparation, and relocation costs. |
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| 524 | 524 | | |
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| 525 | 525 | | (iii) All administrative and real and personal property acquisition and disposal costs related to a public facility described in subparagraphs (i) and (iv), including, but not limited to, architect's, engineer's, legal, and accounting fees as permitted by the district's development plan. |
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| 526 | 526 | | |
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| 527 | 527 | | (iv) An improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, which improvement is made to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. |
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| 528 | 528 | | |
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| 529 | 529 | | (v) All of the following costs approved by the Michigan economic development corporation: |
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| 530 | 530 | | |
|---|
| 531 | 531 | | (A) Operational costs and the costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that are or may become eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for a business incubator located in a certified technology park or certified alternative energy park. |
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| 532 | 532 | | |
|---|
| 533 | 533 | | (B) Costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that, if privately owned, would be eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for laboratory facilities, research and development facilities, conference facilities, teleconference facilities, testing, training facilities, and quality control facilities that are or that support eligible property under subdivision (s)(iii), that are owned by a public entity, and that are located within a certified technology park. |
|---|
| 534 | 534 | | |
|---|
| 535 | 535 | | (C) Costs related to the acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of land and other assets that, if privately owned, would be eligible for depreciation under the internal revenue code of 1986, 26 USC 1 to 9834, for facilities that are or that will support eligible property under subdivision (s)(vi), that have been or will be owned by a public entity when the costs are incurred, that are located within a certified alternative energy park, and that have been or will be conveyed, by gift or sale, by the public entity to an alternative energy technology business. |
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| 536 | 536 | | |
|---|
| 537 | 537 | | (vi) Operating and planning costs included in a plan under section 412(1)(f), including costs of marketing property within the district and attracting development of eligible property within the district. |
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| 538 | 538 | | |
|---|
| 539 | 539 | | (gg) "Qualified refunding obligation" means an obligation issued or incurred by an authority or by a municipality on behalf of an authority to refund an obligation if the refunding obligation meets both of the following: |
|---|
| 540 | 540 | | |
|---|
| 541 | 541 | | (i) The net present value of the principal and interest to be paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury. |
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| 542 | 542 | | |
|---|
| 543 | 543 | | (ii) The net present value of the sum of the tax increment revenues described in subdivision (jj)(ii) and the distributions under section 411a to repay the refunding obligation will not be greater than the net present value of the sum of the tax increment revenues described in subdivision (jj)(ii) and the distributions under section 411a to repay the obligation being refunded, as calculated using a method approved by the department of treasury. |
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| 544 | 544 | | |
|---|
| 545 | 545 | | (hh) "Specific local taxes" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123, 1953 PA 189, MCL 211.181 to 211.182, and the technology park development act, 1984 PA 385, MCL 207.701 to 207.718. The initial assessed value or current assessed value of property subject to a specific local tax is the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
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| 546 | 546 | | |
|---|
| 547 | 547 | | (ii) "State fiscal year" means the annual period commencing October 1 of each year. |
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| 548 | 548 | | |
|---|
| 549 | 549 | | (jj) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions on the captured assessed value of eligible property within the district or, for purposes of a certified technology park, a next Michigan development area, or a certified alternative energy park, real or personal property that is located within the certified technology park, a next Michigan development area, or a certified alternative energy park and included within the tax increment financing plan, subject to the following requirements: |
|---|
| 550 | 550 | | |
|---|
| 551 | 551 | | (i) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions, other than this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts, on the captured assessed value of real and personal property in the development area for any purpose authorized by this part. |
|---|
| 552 | 552 | | |
|---|
| 553 | 553 | | (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), for the following purposes: |
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| 554 | 554 | | |
|---|
| 555 | 555 | | (A) To repay eligible advances, eligible obligations, and other protected obligations. |
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| 556 | 556 | | |
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| 557 | 557 | | (B) To fund or to repay an advance or obligation issued by or on behalf of an authority to fund the cost of public facilities related to or for the benefit of eligible property located within a certified technology park or a certified alternative energy park to the extent the public facilities have been included in an agreement under section 412a(3), 412b, or 412c(3), not to exceed 50%, as determined by the state treasurer, of the amounts levied by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local and intermediate school districts for a period, except as otherwise provided in this sub-subparagraph, not to exceed 15 years, as determined by the state treasurer, if the state treasurer determines that the capture under this sub-subparagraph is necessary to reduce unemployment, promote economic growth, and increase capital investment in the municipality. However, if approved by the state treasurer and the president of the Michigan economic development corporation, a certified technology park may capture under this sub-subparagraph for an additional period of 5 years if, before that capture, the authority agrees to additional reporting requirements and modifies its tax increment financing plan to include regional collaboration as determined by the state treasurer and the president of the Michigan economic development corporation. The retroactive approval of an additional period of 5 years may occur after a capture under this sub-subparagraph for that additional period, if the other requirements of this sub-subparagraph are satisfied. In addition, on approval of the state treasurer and the president of the Michigan economic development corporation, if a municipality that has created a certified technology park that has entered into an agreement with another authority that does not contain a certified technology park to designate a distinct geographic area under section 412b, that authority that has created the certified technology park and the associated distinct geographic area may both capture under this sub-subparagraph for an additional period of 15 years as determined by the state treasurer and the president of the Michigan economic development corporation. |
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| 558 | 558 | | |
|---|
| 559 | 559 | | (C) To fund the cost of public facilities related to or for the benefit of eligible property located within a next Michigan development area to the extent that the public facilities have been included in a development plan, not to exceed 50%, as determined by the state treasurer, of the amounts levied by this state under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local and intermediate school districts for a period not to exceed 15 years, as determined by the state treasurer, if the state treasurer determines that the capture under this sub-subparagraph is necessary to reduce unemployment, promote economic growth, and increase capital investment in the authority district. |
|---|
| 560 | 560 | | |
|---|
| 561 | 561 | | (iii) Tax increment revenues do not include any of the following: |
|---|
| 562 | 562 | | |
|---|
| 563 | 563 | | (A) Ad valorem property taxes or specific local taxes that are excluded from and not made part of the tax increment financing plan. Ad valorem personal property taxes or specific local taxes associated with personal property may be excluded from and may not be part of the tax increment financing plan. |
|---|
| 564 | 564 | | |
|---|
| 565 | 565 | | (B) Ad valorem property taxes and specific local taxes attributable to ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority. |
|---|
| 566 | 566 | | |
|---|
| 567 | 567 | | (C) Ad valorem property taxes exempted from capture under section 404(3) or specific local taxes attributable to those ad valorem property taxes. |
|---|
| 568 | 568 | | |
|---|
| 569 | 569 | | (D) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific local taxes attributable to those ad valorem property taxes. |
|---|
| 570 | 570 | | |
|---|
| 571 | 571 | | (E) The amount of ad valorem property taxes or specific taxes captured by a downtown development authority under part 2, tax increment finance authority under part 3, or brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, if those taxes were captured by these other authorities on the date that the initial assessed value of a parcel of property was established under this part. |
|---|
| 572 | 572 | | |
|---|
| 573 | 573 | | (F) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 574 | 574 | | |
|---|
| 575 | 575 | | (I) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 576 | 576 | | |
|---|
| 577 | 577 | | (II) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
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| 578 | 578 | | |
|---|
| 579 | 579 | | (III) Except as otherwise provided in section 404(3), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
|---|
| 580 | 580 | | |
|---|
| 581 | 581 | | (G) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this sub-subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
|---|
| 582 | 582 | | |
|---|
| 583 | 583 | | (iv) The amount of tax increment revenues authorized to be included under subparagraph (ii), and required to be transmitted to the authority under section 413(1), from ad valorem property taxes and specific local taxes attributable to the application of the levy of the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, or a local school district or an intermediate school district on the captured assessed value of real and personal property in a development area must be determined separately for the levy by this state, each school district, and each intermediate school district as the product of sub-subparagraphs (A) and (B): |
|---|
| 584 | 584 | | |
|---|
| 585 | 585 | | (A) The percentage that the total ad valorem taxes and specific local taxes available for distribution by law to this state, a local school district, or an intermediate school district, respectively, bears to the aggregate amount of ad valorem millage taxes and specific taxes available for distribution by law to this state, each local school district, and each intermediate school district. |
|---|
| 586 | 586 | | |
|---|
| 587 | 587 | | (B) The maximum amount of ad valorem property taxes and specific local taxes considered tax increment revenues under subparagraph (ii). |
|---|
| 588 | 588 | | |
|---|
| 589 | 589 | | (kk) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. |
|---|
| 590 | 590 | | |
|---|
| 591 | 591 | | (ll) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. |
|---|
| 592 | 592 | | |
|---|
| 593 | 593 | | (mm) "Urban township" means a township that meets 1 or more of the following: |
|---|
| 594 | 594 | | |
|---|
| 595 | 595 | | (i) Meets all of the following requirements: |
|---|
| 596 | 596 | | |
|---|
| 597 | 597 | | (A) Has a population of 20,000 or more, or has a population of 10,000 or more but is located in a county with a population of 400,000 or more. |
|---|
| 598 | 598 | | |
|---|
| 599 | 599 | | (B) Adopted a master zoning plan before February 1, 1987. |
|---|
| 600 | 600 | | |
|---|
| 601 | 601 | | (C) Provides sewer, water, and other public services to all or a part of the township. |
|---|
| 602 | 602 | | |
|---|
| 603 | 603 | | (ii) Meets all of the following requirements: |
|---|
| 604 | 604 | | |
|---|
| 605 | 605 | | (A) Has a population of less than 20,000. |
|---|
| 606 | 606 | | |
|---|
| 607 | 607 | | (B) Is located in a county with a population of 250,000 or more but less than 400,000, and that county is located in a metropolitan statistical area. |
|---|
| 608 | 608 | | |
|---|
| 609 | 609 | | (C) Has within its boundaries a parcel of property under common ownership that is 800 acres or larger and is capable of being served by a railroad, and located within 3 miles of a limited access highway. |
|---|
| 610 | 610 | | |
|---|
| 611 | 611 | | (D) Establishes an authority before December 31, 1998. |
|---|
| 612 | 612 | | |
|---|
| 613 | 613 | | (iii) Meets all of the following requirements: |
|---|
| 614 | 614 | | |
|---|
| 615 | 615 | | (A) Has a population of less than 20,000. |
|---|
| 616 | 616 | | |
|---|
| 617 | 617 | | (B) Has a state equalized valuation for all real and personal property located in the township of more than $200,000,000.00. |
|---|
| 618 | 618 | | |
|---|
| 619 | 619 | | (C) Adopted a master zoning plan before February 1, 1987. |
|---|
| 620 | 620 | | |
|---|
| 621 | 621 | | (D) Is a charter township under the charter township act, 1947 PA 359, MCL 42.1 to 42.34. |
|---|
| 622 | 622 | | |
|---|
| 623 | 623 | | (E) Has within its boundaries a combination of parcels under common ownership that is 800 acres or larger, is immediately adjacent to a limited access highway, is capable of being served by a railroad, and is immediately adjacent to an existing sewer line. |
|---|
| 624 | 624 | | |
|---|
| 625 | 625 | | (F) Establishes an authority before March 1, 1999. |
|---|
| 626 | 626 | | |
|---|
| 627 | 627 | | (iv) Meets all of the following requirements: |
|---|
| 628 | 628 | | |
|---|
| 629 | 629 | | (A) Has a population of 13,000 or more. |
|---|
| 630 | 630 | | |
|---|
| 631 | 631 | | (B) Is located in a county with a population of 150,000 or more. |
|---|
| 632 | 632 | | |
|---|
| 633 | 633 | | (C) Adopted a master zoning plan before February 1, 1987. |
|---|
| 634 | 634 | | |
|---|
| 635 | 635 | | (v) Meets all of the following requirements: |
|---|
| 636 | 636 | | |
|---|
| 637 | 637 | | (A) Is located in a county with a population of 1,000,000 or more. |
|---|
| 638 | 638 | | |
|---|
| 639 | 639 | | (B) Has a written agreement with an adjoining township to develop 1 or more public facilities on contiguous property located in both townships. |
|---|
| 640 | 640 | | |
|---|
| 641 | 641 | | (C) Has a master plan in effect. |
|---|
| 642 | 642 | | |
|---|
| 643 | 643 | | (vi) Meets all of the following requirements: |
|---|
| 644 | 644 | | |
|---|
| 645 | 645 | | (A) Has a population of less than 10,000. |
|---|
| 646 | 646 | | |
|---|
| 647 | 647 | | (B) Has a state equalized valuation for all real and personal property located in the township of more than $280,000,000.00. |
|---|
| 648 | 648 | | |
|---|
| 649 | 649 | | (C) Adopted a master zoning plan before February 1, 1987. |
|---|
| 650 | 650 | | |
|---|
| 651 | 651 | | (D) Has within its boundaries a combination of parcels under common ownership that is 199 acres or larger, is located within 1 mile of a limited access highway, and is located within 1 mile of an existing sewer line. |
|---|
| 652 | 652 | | |
|---|
| 653 | 653 | | (E) Has rail service. |
|---|
| 654 | 654 | | |
|---|
| 655 | 655 | | (F) Establishes an authority before May 7, 2009. |
|---|
| 656 | 656 | | |
|---|
| 657 | 657 | | (vii) Has joined an authority under section 403(2) that is seeking or has entered into an agreement for a certified technology park. |
|---|
| 658 | 658 | | |
|---|
| 659 | 659 | | (viii) Has established an authority that is seeking or has entered into an agreement for a certified alternative energy park. |
|---|
| 660 | 660 | | |
|---|
| 661 | 661 | | Sec. 523. (1) At the request of a street railway, and with the consent of the department, a city, village, or township in which a street railway system is located may establish a transit operations finance zone for a street railway system if the city, village, or township and the department determine that it is necessary for the best interests of the public to promote and finance transit operations in a zone. A parcel shall must not be included in more than 1 zone created under this section. |
|---|
| 662 | 662 | | |
|---|
| 663 | 663 | | (2) The boundaries of a zone shall be established by the city, village, or township and may include parcels that are in whole or in part up to 1/4 mile in distance from the street railway system. Before establishing a zone, the city, village, or township shall consult with the street railway, the department, affected taxing jurisdictions, and any other person or entity that the city, village, or township considers necessary. The city, village, or township may conduct a planning study and may designate a zone before implementation of street railway system service within the zone. |
|---|
| 664 | 664 | | |
|---|
| 665 | 665 | | (3) If the city, village, or township and the department determine that it is necessary for the best interests of the public to promote and finance transit operations in a zone under subsection (1), the city, village, or township shall enter into an agreement with the street railway and the department for the creation of a zone. The agreement shall must include, but is not be limited to, all of the following: |
|---|
| 666 | 666 | | |
|---|
| 667 | 667 | | (a) The geographic boundaries of the zone, including both of the following: |
|---|
| 668 | 668 | | |
|---|
| 669 | 669 | | (i) The designation of boundaries of the zone in relation to highways, streets, streams, lakes, other bodies of water, or otherwise. |
|---|
| 670 | 670 | | |
|---|
| 671 | 671 | | (ii) The location and extent of existing streets and other public facilities within the zone, designating the location, character, and extent of the categories of public and private land uses then existing in the zone, including residential, recreational, commercial, industrial, educational, and other uses, and including a legal description of the zone. |
|---|
| 672 | 672 | | |
|---|
| 673 | 673 | | (b) A tax increment financing plan for the zone as provided under subsection (4). |
|---|
| 674 | 674 | | |
|---|
| 675 | 675 | | (c) A description of specific actions to be taken by the parties under the agreement to help establish the zone. |
|---|
| 676 | 676 | | |
|---|
| 677 | 677 | | (d) The requirement that amendments to the agreement must be approved by the city, village, or township, the department, and the street railway. |
|---|
| 678 | 678 | | |
|---|
| 679 | 679 | | (e) Any other material that the city, village, or township, the department, or the street railway consider necessary or appropriate. |
|---|
| 680 | 680 | | |
|---|
| 681 | 681 | | (4) A tax increment financing plan for a zone established under this section shall must include a description of the tax increment financing procedure, the distribution of tax increment financing revenue to the street railway, and a statement of the estimated impact of tax increment financing on the assessed value of property in each taxing jurisdiction in the zone. The plan may exclude from captured assessed value growth in property value resulting solely from inflation and, if so, shall must include the method for excluding that growth. The plan shall must require that tax increment revenue received by a street railway under the plan be used only for the expenses of operating the street railway system. If the street railway subject to an agreement designating a zone under this section ceases to operate a street railway system in the city, village, or township that established the zone, the plan shall terminate terminates and the zone shall be is abolished. The plan shall must restrict the revenue distributed to a street railway for any tax year to the lesser of 25% of any operating deficit of the street railway for the prior fiscal year or $4,000,000.00. Before including a tax increment financing plan in an agreement, the city, village, or township shall provide taxing jurisdictions in the zone levying taxes subject to capture under the plan an opportunity to meet with the city, village, or township. The city, village, or township shall fully inform the taxing jurisdictions of the fiscal and economic implications of the plan and the taxing jurisdictions may present recommendations to the city, village, or township on the tax increment financing plan. |
|---|
| 682 | 682 | | |
|---|
| 683 | 683 | | (5) Before entering into an agreement for the creation of a zone under this section, the city, village, or township shall must conduct a public hearing on the proposed agreement. Notice of the public hearing shall must be published twice in a newspaper of general circulation in the city, village, or township, not less than 20 or more than 40 days before the date of the hearing. The notice shall must state the date, time, and place of the hearing and shall must describe the proposed boundaries of the zone. A citizen, taxpayer, or property owner of the city, village, or township, or an official from a taxing jurisdiction within the zone has the right to be heard on the agreement and the proposed boundaries of the zone. The agreement shall must not include in the zone land not included in the description contained in the notice of public hearing, but the agreement may exclude described land from the zone in the final determination of the boundaries of the zone. A city, village, or township shall not execute an agreement for the creation of a zone under this section unless the city, village, or township finds that it is necessary for the best interests of the public to promote and finance transit operations in a zone. |
|---|
| 684 | 684 | | |
|---|
| 685 | 685 | | (6) An agreement designating a zone and establishing its boundaries under this section and any amendments to the agreement shall must be filed by the city, village, or township with the secretary of state. |
|---|
| 686 | 686 | | |
|---|
| 687 | 687 | | (7) The municipal and county treasurers shall transmit tax increment revenues to the treasurer for the city, village, or township in which the street railway system is located for distribution to the street railway according to the tax increment financing plan and the agreement. The street railway shall expend the tax increment revenues only under the terms of the tax increment financing plan and the agreement under this section. Unused funds shall revert proportionately to the respective taxing jurisdictions. Tax increment revenues shall must not be used to circumvent existing property tax limitations. The city, village, or township and the department may abolish the zone if the city, village, or township and the department find that the purposes for which the zone was established are accomplished. Annually, the city, village, or township, with assistance from the street railway, shall submit to the department and the state tax commission a report on the status of the tax increment financing revenue. The report shall must include all of the following: |
|---|
| 688 | 688 | | |
|---|
| 689 | 689 | | (a) The amount and source of tax increment revenue received by the street railway. |
|---|
| 690 | 690 | | |
|---|
| 691 | 691 | | (b) The amount and purpose of expenditures from tax increment revenue. |
|---|
| 692 | 692 | | |
|---|
| 693 | 693 | | (c) The initial assessed value of the zone. |
|---|
| 694 | 694 | | |
|---|
| 695 | 695 | | (d) The captured assessed value retained within the zone. |
|---|
| 696 | 696 | | |
|---|
| 697 | 697 | | (e) A description of operating expenditures of the street railway. |
|---|
| 698 | 698 | | |
|---|
| 699 | 699 | | (8) The state tax commission may institute proceedings to compel enforcement of this section. The state tax commission may promulgate rules necessary for the administration of this section under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. |
|---|
| 700 | 700 | | |
|---|
| 701 | 701 | | (9) As used in this section: |
|---|
| 702 | 702 | | |
|---|
| 703 | 703 | | (a) "Assessed value" means the taxable value as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a. |
|---|
| 704 | 704 | | |
|---|
| 705 | 705 | | (b) "Captured assessed value" means the amount in any 1 year by which the current assessed value of a zone, including the assessed value of property for which specific local taxes are paid in lieu of property taxes, exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. |
|---|
| 706 | 706 | | |
|---|
| 707 | 707 | | (c) "Initial assessed value" means the assessed value of all the taxable property within the boundaries of a zone at the time when the tax increment financing plan is approved, as shown by the most recent equalized assessment roll of the city, village, or township at the time when an agreement is approved under this section. Property exempt from taxation at the time of the determination of when the initial assessed value shall is determined must be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall is not be considered to be property that is exempt from taxation. |
|---|
| 708 | 708 | | |
|---|
| 709 | 709 | | (d) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. |
|---|
| 710 | 710 | | |
|---|
| 711 | 711 | | (e) "Specific local tax" means a tax levied under 1974 PA 198, 1976 PA 430, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, the commercial rehabilitation act, 2005 PA 210, MCL 207.841 to 207.856, the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786, the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
|---|
| 712 | 712 | | |
|---|
| 713 | 713 | | (f) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the zone. Tax increment revenues do not include any of the following: |
|---|
| 714 | 714 | | |
|---|
| 715 | 715 | | (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. |
|---|
| 716 | 716 | | |
|---|
| 717 | 717 | | (ii) Taxes levied by local or intermediate school districts. |
|---|
| 718 | 718 | | |
|---|
| 719 | 719 | | (iii) Taxes levied by a library established by 1901 LA 359. |
|---|
| 720 | 720 | | |
|---|
| 721 | 721 | | (iv) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 722 | 722 | | |
|---|
| 723 | 723 | | (v) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 724 | 724 | | |
|---|
| 725 | 725 | | (vi) Ad valorem property taxes exempted from capture under this section or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 726 | 726 | | |
|---|
| 727 | 727 | | (vii) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. |
|---|
| 728 | 728 | | |
|---|
| 729 | 729 | | (viii) Ad valorem taxes captured on property in a zone by any of the following authorities if the taxes were captured on the date that the property became subject to a tax increment financing plan under this section by any of the following authorities: |
|---|
| 730 | 730 | | |
|---|
| 731 | 731 | | (A) A downtown development authority created under 1975 PA 197, MCL 125.1651 to 125.1681.under part 2. |
|---|
| 732 | 732 | | |
|---|
| 733 | 733 | | (B) A water resource improvement tax increment finance authority created under the water resource improvement tax increment finance authority act, 2008 PA 94, MCL 125.1771 to 125.1794.under part 7. |
|---|
| 734 | 734 | | |
|---|
| 735 | 735 | | (C) A tax increment finance authority under the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830.part 3. |
|---|
| 736 | 736 | | |
|---|
| 737 | 737 | | (D) A local development finance authority created under the local development finance authority act, 1986 PA 281, MCL 125.2151 to 125.2174.under part 4. |
|---|
| 738 | 738 | | |
|---|
| 739 | 739 | | (E) A brownfield redevelopment finance authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672.125.2670. |
|---|
| 740 | 740 | | |
|---|
| 741 | 741 | | (F) A historical neighborhood tax increment finance authority created under the historical neighborhood tax increment finance authority act, under former 2004 PA 530. , MCL 125.2841 to 125.2866. |
|---|
| 742 | 742 | | |
|---|
| 743 | 743 | | (G) A corridor improvement authority created under the corridor improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.under part 6. |
|---|
| 744 | 744 | | |
|---|
| 745 | 745 | | (H) A neighborhood improvement authority created under the neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to 125.2932.under part 8. |
|---|
| 746 | 746 | | |
|---|
| 747 | 747 | | (ix) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 748 | 748 | | |
|---|
| 749 | 749 | | (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 750 | 750 | | |
|---|
| 751 | 751 | | (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
|---|
| 752 | 752 | | |
|---|
| 753 | 753 | | (x) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
|---|
| 754 | 754 | | |
|---|
| 755 | 755 | | (g) "Zone" means a transit operations finance zone established under this section. |
|---|
| 756 | 756 | | |
|---|
| 757 | 757 | | Sec. 603. As used in this part: |
|---|
| 758 | 758 | | |
|---|
| 759 | 759 | | (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. |
|---|
| 760 | 760 | | |
|---|
| 761 | 761 | | (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. |
|---|
| 762 | 762 | | |
|---|
| 763 | 763 | | (c) "Public facility" means a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, sidewalk, trail, lighting, traffic flow modification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, transit-oriented development, transit-oriented facility, or building, including access routes, that are either designed and dedicated to use by the public generally or used by a public agency, or that are located in a qualified development area and are for the benefit of or for the protection of the health, welfare, or safety of the public generally, whether or not used by 1 or more business entities, provided that if any road, street, or bridge shall be is continuously open to public access and that other property shall be is located in public easements or rights-of-way and designed to accommodate foreseeable development of public facilities in adjoining areas. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier-free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. |
|---|
| 764 | 764 | | |
|---|
| 765 | 765 | | (d) "Qualified development area" means a development area that meets 1 of the following: |
|---|
| 766 | 766 | | |
|---|
| 767 | 767 | | (i) All of the following: |
|---|
| 768 | 768 | | |
|---|
| 769 | 769 | | (A) Is located within a city with a population of 700,000 or more. |
|---|
| 770 | 770 | | |
|---|
| 771 | 771 | | (B) Contains at least not less than 30 contiguous acres. |
|---|
| 772 | 772 | | |
|---|
| 773 | 773 | | (C) Was owned by this state on December 31, 2003 and was conveyed to a private owner before June 30, 2004. |
|---|
| 774 | 774 | | |
|---|
| 775 | 775 | | (D) Is zoned to allow for mixed use that includes commercial use and that may include residential use. |
|---|
| 776 | 776 | | |
|---|
| 777 | 777 | | (E) Otherwise complies with the requirements of section 605(a), (d), (e), and (g). |
|---|
| 778 | 778 | | |
|---|
| 779 | 779 | | (F) Construction within the qualified development area begins on or before the date 2 years after the effective date of the amendatory act that added this subdivision. |
|---|
| 780 | 780 | | |
|---|
| 781 | 781 | | (G) Is located in a distressed area. |
|---|
| 782 | 782 | | |
|---|
| 783 | 783 | | (ii) Contains transit-oriented development or a transit-oriented facility. |
|---|
| 784 | 784 | | |
|---|
| 785 | 785 | | (e) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
|---|
| 786 | 786 | | |
|---|
| 787 | 787 | | (f) "State fiscal year" means the annual period commencing October 1 of each year. |
|---|
| 788 | 788 | | |
|---|
| 789 | 789 | | (g) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Except as otherwise provided in section 29, 629, tax increment revenues do not include any of the following: |
|---|
| 790 | 790 | | |
|---|
| 791 | 791 | | (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. |
|---|
| 792 | 792 | | |
|---|
| 793 | 793 | | (ii) Taxes levied by local or intermediate school districts. |
|---|
| 794 | 794 | | |
|---|
| 795 | 795 | | (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 796 | 796 | | |
|---|
| 797 | 797 | | (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 798 | 798 | | |
|---|
| 799 | 799 | | (v) Ad valorem property taxes exempted from capture under section 618(5) or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 800 | 800 | | |
|---|
| 801 | 801 | | (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. |
|---|
| 802 | 802 | | |
|---|
| 803 | 803 | | (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 804 | 804 | | |
|---|
| 805 | 805 | | (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 806 | 806 | | |
|---|
| 807 | 807 | | (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
|---|
| 808 | 808 | | |
|---|
| 809 | 809 | | (C) Except as otherwise provided in section 618(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
|---|
| 810 | 810 | | |
|---|
| 811 | 811 | | (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
|---|
| 812 | 812 | | |
|---|
| 813 | 813 | | (h) "Transit-oriented development" means infrastructional improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. |
|---|
| 814 | 814 | | |
|---|
| 815 | 815 | | (i) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. |
|---|
| 816 | 816 | | |
|---|
| 817 | 817 | | (j) "Distressed area" means a local governmental unit that meets all of the following: |
|---|
| 818 | 818 | | |
|---|
| 819 | 819 | | (i) Has a population of 700,000 or more. |
|---|
| 820 | 820 | | |
|---|
| 821 | 821 | | (ii) Shows a negative population change from 1970 to the date of the most recent federal decennial census. |
|---|
| 822 | 822 | | |
|---|
| 823 | 823 | | (iii) Shows an overall increase in the state equalized value of real and personal property of less than the statewide average increase since 1972. |
|---|
| 824 | 824 | | |
|---|
| 825 | 825 | | (iv) Has a poverty rate, as defined by the most recent federal decennial census, greater than the statewide average. |
|---|
| 826 | 826 | | |
|---|
| 827 | 827 | | (v) Has had an unemployment rate higher than the statewide average. |
|---|
| 828 | 828 | | |
|---|
| 829 | 829 | | Sec. 703. As used in this part: |
|---|
| 830 | 830 | | |
|---|
| 831 | 831 | | (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. |
|---|
| 832 | 832 | | |
|---|
| 833 | 833 | | (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. |
|---|
| 834 | 834 | | |
|---|
| 835 | 835 | | (c) "Public facility" means a street, and any improvements to a street, including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, or building, including access routes designed and dedicated to use by the public generally, or used by a public agency, that is related to access to inland lakes or a water resource improvement, or means a water resource improvement. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. |
|---|
| 836 | 836 | | |
|---|
| 837 | 837 | | (d) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 211.182. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
|---|
| 838 | 838 | | |
|---|
| 839 | 839 | | (e) "State fiscal year" means the annual period commencing October 1 of each year. |
|---|
| 840 | 840 | | |
|---|
| 841 | 841 | | (f) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Tax increment revenues do not include any of the following: |
|---|
| 842 | 842 | | |
|---|
| 843 | 843 | | (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. |
|---|
| 844 | 844 | | |
|---|
| 845 | 845 | | (ii) Taxes levied by local or intermediate school districts. |
|---|
| 846 | 846 | | |
|---|
| 847 | 847 | | (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 848 | 848 | | |
|---|
| 849 | 849 | | (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 850 | 850 | | |
|---|
| 851 | 851 | | (v) Ad valorem property taxes exempted from capture under section 815(5) 715(5) or specific local taxes attributable to the ad valorem property taxes. |
|---|
| 852 | 852 | | |
|---|
| 853 | 853 | | (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. |
|---|
| 854 | 854 | | |
|---|
| 855 | 855 | | (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
|---|
| 856 | 856 | | |
|---|
| 857 | 857 | | (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
|---|
| 858 | 858 | | |
|---|
| 859 | 859 | | (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
|---|
| 860 | 860 | | |
|---|
| 861 | 861 | | (C) Except as otherwise provided in section 715(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
|---|
| 862 | 862 | | |
|---|
| 863 | 863 | | (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
|---|
| 864 | 864 | | |
|---|
| 865 | 865 | | (g) "Water resource improvement" means enhancement of water quality and water dependent natural resources, including, but not limited to, the following: |
|---|
| 866 | 866 | | |
|---|
| 867 | 867 | | (i) The elimination of the causes and the proliferation of aquatic nuisance species, as defined in section 3101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.3101. |
|---|
| 868 | 868 | | |
|---|
| 869 | 869 | | (ii) Sewer systems that service existing structures that have failing on-site disposal systems. |
|---|
| 870 | 870 | | |
|---|
| 871 | 871 | | (iii) Storm water systems that service existing infrastructure. |
|---|
| 872 | 872 | | |
|---|
| 873 | 873 | | (iv) Dredging, removal of spoils, or other improvements or maintenance activities that enhance navigability of a waterway. |
|---|
| 874 | 874 | | |
|---|
| 875 | 875 | | (h) "Water resource improvement district" or "district" means 1 or more of the following: |
|---|
| 876 | 876 | | |
|---|
| 877 | 877 | | (i) An inland body of water and land that is up to 1 mile from the shoreline of an inland lake that contains 1 or more public access points. |
|---|
| 878 | 878 | | |
|---|
| 879 | 879 | | (ii) An inland body of water and parcels of land that are contiguous to the shoreline of an inland lake that does not contain a public access point. |
|---|
| 880 | 880 | | |
|---|
| 881 | 881 | | (iii) The shoreline of a harbor on a Great Lake and 1 or more of the following: |
|---|
| 882 | 882 | | |
|---|
| 883 | 883 | | (A) Land up to 1 mile from the shoreline of the harbor. |
|---|
| 884 | 884 | | |
|---|
| 885 | 885 | | (B) A tributary to that Great Lake harbor up to 5 miles upstream from the shoreline of the Great Lake harbor. |
|---|
| 886 | 886 | | |
|---|
| 887 | 887 | | (C) Land up to 1 mile from each bank of the tributary described in sub-subparagraph (B). |
|---|
| 888 | 888 | | |
|---|
| 889 | 889 | | Sec. 803. As used in this part: |
|---|
| 890 | 890 | | |
|---|
| 891 | 891 | | (a) "Operations" means office maintenance, including salaries and expenses of employees, office supplies, consultation fees, design costs, and other expenses incurred in the daily management of the authority and planning of its activities. |
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| 892 | 892 | | |
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| 893 | 893 | | (b) "Parcel" means an identifiable unit of land that is treated as separate for valuation or zoning purposes. |
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| 894 | 894 | | |
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| 895 | 895 | | (c) "Public facility" means housing, a street, plaza, pedestrian mall, and any improvements to a street, plaza, or pedestrian mall including street furniture and beautification, park, parking facility, recreational facility, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipe, or building, including access routes designed and dedicated to use by the public generally, or used by a public agency. Public facility includes an improvement to a facility used by the public or a public facility as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, if the improvement complies with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. |
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| 896 | 896 | | |
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| 897 | 897 | | (d) "Residential district" means an area of a municipality where 75% or more of the area is zoned for residential housing. |
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| 898 | 898 | | |
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| 899 | 899 | | (e) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, 1953 PA 189, MCL 211.181 to 211.182, the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786, or the commercial rehabilitation act, 2005 PA 210, MCL 207.841 to 207.856. The initial assessed value or current assessed value of property subject to a specific local tax shall be is the quotient of the specific local tax paid divided by the ad valorem millage rate. The state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. |
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| 900 | 900 | | |
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| 901 | 901 | | (f) "State fiscal year" means the annual period commencing October 1 of each year. |
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| 902 | 902 | | |
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| 903 | 903 | | (g) "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon on the captured assessed value of real and personal property in the development area. Tax increment revenues do not include any of the following: |
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| 904 | 904 | | |
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| 905 | 905 | | (i) Taxes under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906. |
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| 906 | 906 | | |
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| 907 | 907 | | (ii) Taxes levied by local or intermediate school districts. |
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| 908 | 908 | | |
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| 909 | 909 | | (iii) Ad valorem property taxes attributable either to a portion of the captured assessed value shared with taxing jurisdictions within the jurisdictional area of the authority or to a portion of value of property that may be excluded from captured assessed value or specific local taxes attributable to the ad valorem property taxes. |
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| 910 | 910 | | |
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| 911 | 911 | | (iv) Ad valorem property taxes excluded by the tax increment financing plan of the authority from the determination of the amount of tax increment revenues to be transmitted to the authority or specific local taxes attributable to the ad valorem property taxes. |
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| 912 | 912 | | |
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| 913 | 913 | | (v) Ad valorem property taxes exempted from capture under section 814(5) or specific local taxes attributable to those ad valorem property taxes. |
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| 914 | 914 | | |
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| 915 | 915 | | (vi) Ad valorem property taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific taxes attributable to those ad valorem property taxes. |
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| 916 | 916 | | |
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| 917 | 917 | | (vii) Ad valorem property taxes levied under 1 or more of the following or specific local taxes attributable to those ad valorem property taxes: |
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| 918 | 918 | | |
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| 919 | 919 | | (A) The zoological authorities act, 2008 PA 49, MCL 123.1161 to 123.1183. |
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| 920 | 920 | | |
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| 921 | 921 | | (B) The art institute authorities act, 2010 PA 296, MCL 123.1201 to 123.1229. |
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| 922 | 922 | | |
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| 923 | 923 | | (C) Except as otherwise provided in section 814(5), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016. |
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| 924 | 924 | | |
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| 925 | 925 | | (viii) Ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for fire department purposes. As used in this subparagraph, "fire department" means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1. |
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