Michigan Laws 123.1354 – Municipality not local school district, intermediate school district, or tax increment finance authority; municipality that is county, township, village, city, or authority providing essential service
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Terms Used In Michigan Laws 123.1354
- Authority: means the local community stabilization authority, a metropolitan authority established under section 7. See Michigan Laws 123.1345
- Captured value: means 1 or more of the following:
(i) For a tax increment finance authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125. See Michigan Laws 123.1345Debt loss: means , for a municipality that is not a local school district, intermediate school district, or tax increment finance authority, the amount of ad valorem property taxes and any specific tax levied for the payment of principal and interest of obligations either approved by the voters before January 1, 2013 or incurred before January 1, 2013 pledging the unlimited or limited taxing power of the municipality that are lost as a result of the exemption of industrial personal property and commercial personal property under sections 9m, 9n, and 9o of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345 Department: means the department of treasury. See Michigan Laws 123.1345 Essential services: means all of the following:
(i) Ambulance services. See Michigan Laws 123.1345Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006. Fiscal year: means either an annual period that begins on October 1 and ends on September 30 or the fiscal year for the authority established by the council. See Michigan Laws 123.1345 Increased captured value: means the anticipated increase in captured value for all industrial personal property and commercial personal property in a tax increment finance authority that would have occurred as a result of either the addition of personal property as part of a specific project or the expiration of an exemption under section 7k, 7ff, or 9f of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345 Increased value from expired tax exemptions: means the increase in taxable value subject to tax of industrial personal property and commercial personal property placed in service before 2013 that would have occurred after 2013 if the exemptions under section 9m or 9n of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345 Local authority: means any authority, excluding an authority created under this act or a tax increment finance authority. See Michigan Laws 123.1345 Municipality: includes , but is not limited to, the following:
(i) Counties. See Michigan Laws 123.1345Personal property: All property that is not real property. Personal property exemption loss: means 1 of the following:
(i) For a municipality that is not a local school district, intermediate school district, or tax increment finance authority, the 2013 taxable value of commercial personal property and industrial personal property minus the current year taxable value of commercial personal property and industrial personal property and minus the small taxpayer exemption loss if, for years after 2017, the small taxpayer exemption loss is greater than zero. See Michigan Laws 123.1345Small taxpayer exemption loss: means 1 of the following:
(i) For a municipality, the 2013 taxable value of commercial personal property and industrial personal property minus the 2014 taxable value of commercial personal property and industrial personal property. See Michigan Laws 123.1345state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Tax increment finance authority: means an authority created under 1 or both of the following:
(i) The brownfield redevelopment financing act, 1996 PA 381, MCL 125. See Michigan Laws 123.1345Tax increment small taxpayer loss: means the amount of revenue lost by a municipality that is a tax increment finance authority due to the exemption provided by section 9o of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 123.1345
(1) Not later than November 7, 2017, and each October 7 thereafter, for each municipality that is not a local school district, intermediate school district, or tax increment finance authority, the department shall do all of the following:
(a) Calculate the municipality’s personal property exemption loss.
(b) Multiply the municipality’s personal property exemption loss by the millage rates calculated under section 13(5).
(c) For calendar year 2017 calculations only, adjust the amount calculated under subdivision (b) by the amount required to reflect changes in prior year taxable values that affect any prior year calculation under this subsection and that can be calculated from taxable values reported under section 151(1) of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.
(d) Subtract from the amount calculated under subdivision (b), as adjusted by subdivision (c), the amount calculated under section 16a(2) for captured taxes levied by the municipality not including taxes attributable to increased captured value.
(2) Not later than November 7, 2017, and each October 7 thereafter, for each municipality that is a county, township, village, city, or local authority that provides essential services, the department shall do all of the following:
(a) For calendar year 2016, 2017, 2018, 2019, and 2020 calculations only, add to the amount calculated under subsection (1)(a) any increased value from expired tax exemptions for the current year.
(b) Multiply the millage rate calculated under section 13(5) for general operating millage by the percentage of the municipality’s general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012. The department shall calculate each municipality’s percentage of general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012, unless the municipality includes the calculation in its comprehensive annual financial report for the municipality’s fiscal year ending in either 2014 or 2015 or otherwise reports the calculation to the department in a form and in a manner prescribed by the department.
(c) Multiply the result of the calculation in subdivision (a) by the result of the calculation in subdivision (b).
(d) Multiply the amount calculated under section 16a(2) for captured taxes from the general operating millage levied by the municipality not including taxes attributable to increased captured value by the percentage of the municipality’s general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012 and subtract the resulting amount from the amount calculated under subdivision (c).
(e) Add to the result of the calculation in subdivision (d) an amount calculated by multiplying the millage rate calculated under section 13(5) for each millage that is not general operating millage and that is dedicated in whole or in part for the cost of essential services by 1 or by the portion reported for that millage under section 13(7), as applicable, multiplying the resulting product for each millage by the amount calculated under subdivision (a), and adding the results. A millage levied to fund a pension under the fire fighters and police officers retirement act, 1937 PA 345, MCL 38.551 to 38.562, is dedicated for the cost of essential services.
(f) Subtract from the result of the calculation in subdivision (e) the amount calculated under section 16a(2) for captured taxes from the portion of millage dedicated for the cost of essential services levied by the municipality not including taxes attributable to increased captured value.
(3) Not later than May 24, 2016, for each municipality that is a city, the department shall do all of the following:
(a) Calculate the municipality’s 2014 and 2015 small taxpayer exemption loss.
(b) Multiply the 2014 small taxpayer exemption loss if greater than zero by the millage rates calculated under section 13(5) for 2014, excluding debt millage.
(c) Multiply the 2015 small taxpayer exemption loss if greater than zero by the millage rates calculated under section 13(5) for 2015, excluding debt millage.
(d) Add the amounts calculated under subdivisions (b) and (c).
(e) Calculate the sum of the municipality’s debt loss for 2014 and 2015 reimbursed under section 17(1)(a) for millages used to calculate the amounts under subdivisions (b) and (c).
(f) Calculate the amount of any tax increment small taxpayer loss for captured taxes levied by the municipality in 2014 and 2015 for millages used to calculate the amounts under subdivisions (b) and (c).
(4) Not later than November 7, 2017, and each October 7 thereafter, for each municipality that is not a local school district, intermediate school district, or tax increment finance authority, the department shall do all of the following:
(a) Calculate the municipality’s 2015 small taxpayer exemption loss.
(b) Multiply the municipality’s 2015 small taxpayer exemption loss by the millage rates calculated under section 13(5).
(c) For calendar year 2017 calculations only, adjust the amount calculated under subdivision (b) by the amount required to reflect changes in prior year taxable values that affect any prior year calculation under this subsection and that can be calculated from taxable values reported under section 151(1) of the state school aid act of 1979, 1979 PA 94, MCL 388.1751.
(d) Subtract from the amount calculated under subdivision (b), as adjusted by subdivision (c), the amount calculated under section 16a(2) for captured taxes levied by the municipality not including taxes attributable to increased captured value. The subtraction under this subdivision shall only be made to the extent that the subtraction made under subsection (1)(d) did not fully account for all captured taxes levied by the municipality not including taxes attributable to increased captured value.