Relating to the implementation of a project plan or financing plan for a reinvestment zone under the Tax Increment Financing Act and the granting of exemptions from ad valorem taxes imposed on real property in a reinvestment zone under that Act.
Impact
The bill impacts the state's tax code by amending sections that govern reinvestment zones. It allows local governments greater flexibility in managing tax increments and facilitating projects aimed at public benefit, such as educational facilities, affordable housing, and public infrastructure. The provisions enable municipalities to dedicate revenue generated within these zones for necessary projects that improve local communities and stimulate economic activity.
Summary
Senate Bill 576 relates to the implementation of project plans or financing plans for reinvestment zones under the Tax Increment Financing Act. It aims to enhance the authority of municipalities and counties to create agreements that will assist in the development and financing of projects within designated reinvestment zones. The bill seeks to streamline the process for entering into agreements that regulate land use within these zones and ensures these agreements align with local economic development goals.
Contention
Notable points of contention surrounding SB576 include concerns about how local governments will manage the exemptions from ad valorem taxes. Critics may argue that while these incentives can promote economic growth, they could also lead to decreased funding for essential public services if not properly regulated. Furthermore, the extent to which municipalities can control land use through these agreements has raised questions about potential overreach and impacts on community character and standards.
Identical
Relating to the implementation of a project plan or financing plan for a reinvestment zone under the Tax Increment Financing Act and the granting of exemptions from ad valorem taxes imposed on real property in a reinvestment zone under that Act.
Relating to the authority of the board of directors of a tax increment financing reinvestment zone to use money in the tax increment fund established for the zone to compensate certain homeowners for the increase in taxes associated with the zone.
Relating to the calculation of ad valorem tax rates by certain taxing units that participate in one or more reinvestment zones for tax increment financing.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Proposing a constitutional amendment authorizing the legislature to provide that the officials responsible for appraising property for ad valorem taxation in a county may exclude from consideration the value of new or substantially remodeled residential property when determining the market value of an older residence homestead located in or near a tax increment financing reinvestment zone.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relative to the New Orleans City Park Taxing District, provides with respect to procedures relative to use of state sales tax increments for tax increment financing (EN DECREASE GF RV See Note)
Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).
Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).