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SENATE BILL NO. 918
A bill to amend 2018 PA 57, entitled
"Recodified tax increment financing act,"
by amending section 703 (MCL 125.4703).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 703. As used in this part: 1
(a) "Operations" means office maintenance, including salaries 2
and expenses of employees, office supplies, consultation fees, 3
design costs, and other expenses incurred in the daily management 4
of the authority and planning of its activities. 5
(b) "Parcel" means an identifiable unit of land that is 6
April 23, 2026, Introduced by Senator HOITENGA and referred to Committee on Local
Government.
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treated as separate for valuation or zoning purposes. 1
(c) "Public facility" means a street, and any improvements to 2
a street, including street furniture and beautification, park, 3
parking facility, recreational facility, right-of-way, structure, 4
waterway, bridge, lake, pond, canal, utility line or pipe, or 5
building, including access routes designed and dedicated to use by 6
the public generally, or used by a public agency, that is related 7
to access to inland lakes or a water resource improvement, or means 8
a water resource improvement. Public facility includes an 9
improvement to a facility used by the public or a public facility 10
as those terms are defined in section 1 of 1966 PA 1, MCL 125.1351, 11
if the improvement complies with the barrier free design 12
requirements of the state construction code promulgated under the 13
Stille-DeRossett-Hale single state construction code act, 1972 PA 14
230, MCL 125.1501 to 125.1531. 15
(d) "Specific local tax" means a tax levied under 1974 PA 198, 16
MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 17
255, MCL 207.651 to 207.668, the technology park development act, 18
1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to 19
211.182. The initial assessed value or current assessed value of 20
property subject to a specific local tax shall be is the quotient 21
of the specific local tax paid divided by the ad valorem millage 22
rate. The state tax commission shall prescribe the method for 23
calculating the initial assessed value and current assessed value 24
of property for which a specific local tax was paid in lieu of a 25
property tax. 26
(e) "State fiscal year" means the annual period commencing 27
October 1 of each year. 28
(f) "Tax increment revenues" means the amount of ad valorem 29
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property taxes and specific local taxes attributable to the 1
application of the levy of all taxing jurisdictions upon on the 2
captured assessed value of real and personal property in the 3
development area. Tax increment revenues do not include any of the 4
following: 5
(i) Taxes under the state education tax act, 1993 PA 331, MCL 6
211.901 to 211.906. 7
(ii) Taxes levied by local or intermediate school districts. 8
(iii) Ad valorem property taxes attributable either to a portion 9
of the captured assessed value shared with taxing jurisdictions 10
within the jurisdictional area of the authority or to a portion of 11
value of property that may be excluded from captured assessed value 12
or specific local taxes attributable to the ad valorem property 13
taxes. 14
(iv) Ad valorem property taxes excluded by the tax increment 15
financing plan of the authority from the determination of the 16
amount of tax increment revenues to be transmitted to the authority 17
or specific local taxes attributable to the ad valorem property 18
taxes. 19
(v) Ad valorem property taxes exempted from capture under 20
section 815(5) 715(5) or specific local taxes attributable to the 21
ad valorem property taxes. 22
(vi) Ad valorem property taxes specifically levied for the 23
payment of principal and interest of obligations approved by the 24
electors or obligations pledging the unlimited taxing power of the 25
local governmental unit or specific taxes attributable to those ad 26
valorem property taxes. 27
(vii) Ad valorem property taxes levied under 1 or more of the 28
following or specific local taxes attributable to those ad valorem 29
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property taxes: 1
(A) The zoological authorities act, 2008 PA 49, MCL 123.1161 2
to 123.1183. 3
(B) The art institute authorities act, 2010 PA 296, MCL 4
123.1201 to 123.1229. 5
(viii) (C) Except as otherwise provided in section 715(5), ad 6
valorem property taxes or specific local taxes attributable to 7
those ad valorem property taxes levied for a separate millage for 8
public library purposes approved by the electors after December 31, 9
2016. 10
(g) "Water resource improvement" means enhancement of water 11
quality and water dependent natural resources, including, but not 12
limited to, the following: 13
(i) The elimination of the causes and the proliferation of 14
aquatic nuisance species, as defined in section 3101 of the natural 15
resources and environmental protection act, 1994 PA 451, MCL 16
324.3101. 17
(ii) Sewer systems that service existing structures that have 18
failing on-site disposal systems. 19
(iii) Storm water systems that service existing infrastructure. 20
(iv) Dredging, removal of spoils, or other improvements or 21
maintenance activities that enhance navigability of a waterway. 22
(v) Dam maintenance and repairs. 23
(h) "Water resource improvement district" or "district" means 24
1 or more of the following: 25
(i) An inland body of water and land that is up to 1 mile from 26
the shoreline of an inland lake that contains 1 or more public 27
access points. 28
(ii) An inland body of water and parcels of land that are 29
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contiguous to the shoreline of an inland lake that does not contain 1
a public access point. 2
(iii) The shoreline of a harbor on a Great Lake and 1 or more of 3
the following: 4
(A) Land up to 1 mile from the shoreline of the harbor. 5
(B) A tributary to that Great Lake harbor up to 5 miles 6
upstream from the shoreline of the Great Lake harbor. 7
(C) Land up to 1 mile from each bank of the tributary 8
described in sub-subparagraph (B). 9