Bill Text: MI SB0090 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Revenue sharing; other; revenue sharing formula; modify. Amends secs. 11 & 13 of 1971 PA 140 (MCL 141.911 & 141.913).
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2011-01-27 - Referred To Committee On Appropriations [SB0090 Detail]
Download: Michigan-2011-SB0090-Introduced.html
SENATE BILL No. 90
January 27, 2011, Introduced by Senators ROCCA, BRANDENBURG, MARLEAU, SCHUITMAKER, PAVLOV, NOFS and MOOLENAAR and referred to the Committee on Appropriations.
A bill to amend 1971 PA 140, entitled
"Glenn Steil state revenue sharing act of 1971,"
by amending sections 11 and 13 (MCL 141.911 and 141.913), section
11 as amended by 2004 PA 356 and section 13 as amended by 2006 PA
437.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For state fiscal years before the 1996-1997 state
fiscal year, the department of technology, management, and budget
shall cause to be paid during each August, November, February, and
May, to counties on a per capita basis the collections from the
state income tax as certified by the department of treasury for the
quarter periods ending the prior June 30, September 30, December
31, and March 31 that are available for distribution to and
retention by counties.
(2) For state fiscal years beginning after September 30, 1992
and ending before October 1, 1996, the collections from the state
income tax otherwise available for distribution to counties in
November for the quarter period ending the prior September 30 shall
be increased by $35,900,000.00 and the collections from the state
income tax otherwise available for distribution to counties in
August for the quarter period ending the prior June 30 shall be
decreased by $35,900,000.00.
(3) For the 1996-1997 and 1997-1998 state fiscal years, the
department of treasury shall cause to be paid to counties on a per
capita basis an amount equal to 24.5% of the difference between
21.3% of the sales tax collections at a rate of 4% in the 12-month
period ending June 30 of the state fiscal year in which the
payments are made and the total distribution for the state fiscal
year under section 12a. Subject to section 13d, for the 1998-1999
through 2005-2006 state fiscal years and for the period of October
1, 2006 through September 30, 2007, the department of treasury
shall cause to be paid to counties all of the following:
(a) Except as provided in subdivision (c) and subsection (6),
an amount equal to the amount the county was eligible to receive
under section 12a in the 1997-1998 state fiscal year.
(b) Except as provided in subdivision (c) and subsection (6),
an amount equal to 25.06% of 21.3% of the sales tax collections at
a rate of 4% in the 12-month period ending June 30 of the state
fiscal year in which the payments are made minus the amount
determined under subdivision (a) which remainder shall be
distributed on a per capita basis. If the amount appropriated under
this section to counties is less than 25.06% of 21.3% of the sales
tax rate of 4%, any reduction made necessary by this appropriation
in distributions to counties shall first be applied to the
distribution under this subdivision.
(c) For the 2002-2003 state fiscal year only, each county
shall receive the lesser of 96.5%, or the percentage determined
under this subdivision, of the amount that the county would have
received if the total available for distribution under subdivisions
(a) and (b) were $211,549,002.00. The total amount available for
distribution to all counties under this subdivision shall not
exceed $204,144,787.00. For the 2002-2003 state fiscal year, the
percentage under this subdivision shall be determined by dividing
the sum of all payments under section 10 of article IX of the state
constitution of 1963 and $791,070,000.00 by $1,515,644,218.00. For
the 2003-2004 state fiscal year only, each county shall receive the
lesser of 92%, or the percentage determined under this subdivision,
of the amount distributed to the county under this subsection for
the 2002-2003 state fiscal year. For the 2003-2004 state fiscal
year, the percentage under this subdivision shall be determined by
dividing the sum of all payments under section 10 of article IX of
the state constitution of 1963 and $724,800,000.00 by
$1,407,850,000.00 and then subtracting 0.08.
(4) After September 30, 2007 through September 30, 2011 and
subject to the limitations of subsections (3) and (6), 25.06% of
21.3% of the sales tax collections at a rate of 4% shall be
distributed to counties as provided by law. After September 30,
2011 and subject to the limitations of subsections (3) and (6),
25.06% of 21.3% of the sales tax collections at a rate of 4% shall
be distributed to counties on a per capita basis.
(5) The payments under subsection (3) shall be made from
revenues collected during the state fiscal year in which the
payments are made and shall be made during each October, December,
February, April, June, and August. Payments shall be based on
collections from the sales tax at a rate of 4% in the 2-month
period ending the prior August 31, October 31, December 31,
February 28, April 30, and June 30, and for the 1996-1997 and 1997-
1998 state fiscal years only the payments shall be reduced by 1/6
of the total distribution for the state fiscal year under section
12a. For state fiscal years after the 1995-1996 state fiscal year,
the collections from the sales tax otherwise available for
distribution to counties under subsection (3) in December shall be
increased by $17,000,000.00 and the collections from the sales tax
otherwise available for distribution to counties under subsection
(3) in April shall be decreased by $17,000,000.00.
(6) For state fiscal years beginning after September 30, 2004,
the total amount distributed to each county under this section
shall equal the amount by which the balance in its revenue sharing
reserve fund under section 44a of the general property tax act,
1893 PA 206, MCL 211.44a, for the county's most recent fiscal year
that ends prior to the January 1 of the state's fiscal year is less
than the amount calculated under section 44a(13) of the general
property tax act, 1893 PA 206, MCL 211.44a, for the county fiscal
year that begins in the state's fiscal year. Payments under this
subsection shall be adjusted as necessary to reflect partial county
fiscal years and prorated based on the total amount appropriated
for distribution to all counties. Upon the exhaustion of each
county's revenue sharing reserve fund, state revenue sharing within
that county will be fully and permanently restored in an amount
equal to the total payments made to that county under this act in
the state fiscal year ending September 30, 2004, adjusted annually
through the date of restoration by the inflation rate, without
regard to an executive order issued after May 17, 2004, and
prorated based on the amount of the reserve fund used by the county
in the fiscal year during which payments are required to resume
under this subsection. As used in this subsection, "inflation rate"
means that term as defined in section 34d of the general property
tax act, 1893 PA 206, MCL 211.34d.
(7) The department of treasury may withhold all or a portion
of payments under this section to a county that has not timely
furnished the statement required under section 151(1) of the state
school aid act of 1979, 1979 PA 94, MCL 388.1751, or distributed an
industrial facilities tax as required under 1974 PA 198, MCL
207.551 to 207.572, or the specific tax as required under section
21b of the enterprise zone act, 1985 PA 224, MCL 125.2121b. Before
withholding all or a portion of the payments under this section to
a county, the department shall inform the county in writing of the
intent to withhold payments and offer an opportunity for an
informal conference on the matter.
Sec. 13. (1) This subsection and subsection (2) apply to
distributions to cities, villages, and townships during the state
fiscal years before the 1996-1997 state fiscal year of collections
from the state income tax and single business tax. Except as
otherwise provided in subsection (2), the department of treasury
shall cause to be paid to each city, village, and township its
share, computed in accordance with the tax effort formula, of the
following revenues:
(a) During each August, November, February, and May, the
collections from the state income tax for the quarter periods
ending the prior June 30, September 30, December 31, and March 31
that are available for distribution to cities, villages, and
townships under the income tax act of 1967, 1967 PA 281, MCL 206.1
to 206.532.
(b) The amount of the collections from the single business tax
available for distribution to cities, villages, and townships under
former
section 136 of the single
business tax act, former 1975 PA
228.
(2) The amount of collections of the state income tax
otherwise available for distribution to cities, villages, and
townships in November, February, and May, computed in accordance
with the tax effort formula, shall be increased by $22,600,000.00.
The amount of collections otherwise available for distribution to
cities, villages, and townships in August, computed in accordance
with the tax effort formula, shall be decreased by $67,800,000.00.
(3) This subsection applies to distributions to cities,
villages, and townships for the 1996-1997 state fiscal year. The
department of treasury shall cause to be paid in accordance with
the tax effort formula an amount equal to 75.5% of the difference
between 21.3% of the sales tax collections at a rate of 4% in the
12-month period ending June 30 of the state fiscal year in which
the payments are made and the total distribution for the state
fiscal year under section 12a.
(4) The department of treasury shall cause to be paid during
the 1997-1998 state fiscal year an amount equal to 75.5% of the
difference between 21.3% of the sales tax collections at a rate of
4% in the 12-month period ending June 30 of the state fiscal year
in which the payments are made and the total distribution for the
state fiscal year under section 12a, both of the following:
(a) To each city, village, and township, the amount of
collections distributed under subsection (3) to cities, villages,
and townships for the 1996-1997 state fiscal year or its pro rata
share of the collections if the collections are less than the
amount of collections distributed under subsection (3) for the
1996-1997 state fiscal year. A city's, village's, or township's
share of revenues under this subdivision shall be computed using
the tax effort formula.
(b) To each city, village, and township its share of the
collections to the extent the total collections available for
distribution under this subsection exceed the amount distributed to
cities, villages, and townships under subdivision (a) for the
fiscal year. A city's, village's, or township's share of revenues
under this subdivision shall be computed on a per capita basis.
(5) Subject to section 13d, for the 1998-1999 through 2006-
2007 state fiscal years, the department of treasury shall cause
distributions determined under subsections (6) to (13) to be paid
to each city, village, and township from an amount equal to 74.94%
of 21.3% of the sales tax collections at a rate of 4% in the 12-
month period ending June 30 of the state fiscal year in which the
payments are made. After September 30, 2007 through September 30,
2011, 74.94% of 21.3% of sales tax collections at a rate of 4%
shall be distributed to cities, villages, and townships as provided
by law. After September 30, 2011, 74.94% of 21.3% of sales tax
collections at a rate of 4% shall be distributed to cities,
villages, and townships on a per capita basis.
(6) Subject to section 13d, for the 1998-1999 through 2006-
2007 state fiscal years, except for the 2002-2003 through 2006-2007
state fiscal years, and except as otherwise provided in subsection
(15), the department of treasury shall cause to be paid
$333,900,000.00 to a city with a population of 750,000 or more as
the total combined distribution under this act and section 10 of
article IX of the state constitution of 1963 as annualized for any
period of less than 12 months to that city. For the 2002-2003 state
fiscal year only, the total combined distribution under this
subsection and section 10 of article IX of the state constitution
of 1963 shall be the lesser of $322,213,500.00 or $333,900,000.00
multiplied by the percentage as determined under this subsection.
For the 2002-2003 state fiscal year, the percentage under this
subsection shall be determined by dividing the sum of all payments
under section 10 of article IX of the state constitution of 1963
and $791,070,000.00 by $1,515,644,218.00. For the 2003-2004 state
fiscal year only, the total combined distribution under this
subsection and section 10 of article IX of the state constitution
of 1963 shall be the lesser of 92%, or the percentage determined
under this subsection, of the total combined distribution under
this subsection and section 10 of article IX of the state
constitution of 1963 for the 2002-2003 state fiscal year. For the
2003-2004 state fiscal year, the percentage under this subsection
shall be determined by dividing the sum of all payments under
section 10 of article IX of the state constitution of 1963 and
$724,800,000.00 by $1,407,850,000.00 and then subtracting 0.08. For
the 2004-2005 state fiscal year only, the total combined
distribution under this subsection and section 10 of article IX of
the state constitution of 1963 shall be the lesser of 100%, or the
percentage determined under this subsection, of the total combined
distribution under this subsection and section 10 of article IX of
the state constitution of 1963 for the 2003-2004 state fiscal year.
For the 2004-2005 state fiscal year, the percentage under this
subsection shall be determined by dividing the sum of all payments
under section 10 of article IX of the state constitution of 1963
and $445,300,000.00 by $1,126,300,000.00. For the 2005-2006 state
fiscal year only, the total combined distribution under this
subsection and section 10 of article IX of the state constitution
of 1963 shall be the lesser of 100%, or the percentage determined
under this subsection, of the total combined distribution under
this subsection and section 10 of article IX of the state
constitution of 1963 for the 2004-2005 state fiscal year. For the
2005-2006 state fiscal year, the percentage under this subsection
shall be determined by dividing the sum of all payments under
section 10 of article IX of the state constitution of 1963 for the
2005-2006 state fiscal year and $423,350,000.00 by
$1,115,875,000.00. For the 2006-2007 state fiscal year only, the
total combined distribution under this subsection and section 10 of
article IX of the state constitution of 1963 shall be the lesser of
100%, or the percentage determined under this subsection, of the
total combined distribution under this subsection and section 10 of
article IX of the state constitution of 1963 for the 2005-2006
state fiscal year. For the 2006-2007 state fiscal year, the
percentage under this subsection shall be determined by dividing
the sum of all payments under section 10 of article IX of the state
constitution of 1963 for the 2006-2007 state fiscal year and
$407,485,000.00 by $1,106,410,000.00.
(7) Except as otherwise provided in this subsection,
distributions under subsections (8) to (13) to cities, villages,
and townships with populations of less than 750,000 shall be made
from the amount available for distribution under this section that
remains after the distribution under subsection (6) is made. For
the 2002-2003 state fiscal year only, each city, village, and
township with a population of less than 750,000 shall receive the
lesser of 96.5%, or the percentage determined under this
subsection, of the amount that the city, village, or township would
have received if the total available for distribution under
subsections (8) to (13) were $363,069,728.00 and the total
available for distribution under section 10 of article IX of the
state constitution of 1963 were $607,125,488.00. The total amount
available for distribution to all cities, villages, and townships
under this subsection shall not exceed $936,238,383.00. For the
2002-2003 state fiscal year, the percentage under this subsection
shall be determined by dividing the sum of all payments under
section 10 of article IX of the state constitution of 1963 and
$791,070,000.00 by $1,515,644,218.00. For the 2003-2004 state
fiscal year only, each city, village, and township with a
population of less than 750,000 shall receive an amount equal to
the lesser of 92%, or the percentage determined under this
subsection, of the amount distributed to the city, village, or
township under this subsection and section 10 of article IX of the
state constitution of 1963 for the 2002-2003 state fiscal year. For
the 2003-2004 state fiscal year, the percentage under this
subsection shall be determined by dividing the sum of all payments
under section 10 of article IX of the state constitution of 1963
and $724,800,000.00 by $1,407,850,000.00 and then subtracting 0.08.
For the 2004-2005 state fiscal year only, the combined distribution
under this subsection and section 10 of article IX of the state
constitution of 1963 to each city, village, and township with a
population of less than 750,000 shall be the lesser of 100%, or the
percentage determined under this subsection, of the total combined
distribution to that city, village, or township under this
subsection and section 10 of article IX of the state constitution
of 1963 for the 2003-2004 state fiscal year. For the 2004-2005
state fiscal year, the percentage under this subsection shall be
determined by dividing the sum of all payments under section 10 of
article IX of the state constitution of 1963 and $445,300,000.00 by
$1,126,300,000.00. For the 2005-2006 state fiscal year only, the
total combined distribution under this subsection and section 10 of
article IX of the state constitution of 1963 shall be the lesser of
100%, or the percentage determined under this subsection, of the
total combined distribution under this subsection and section 10 of
article IX of the state constitution of 1963 for the 2004-2005
state fiscal year. For the 2005-2006 state fiscal year, the
percentage under this subsection shall be determined by dividing
the sum of all payments under section 10 of article IX of the state
constitution of 1963 for the 2005-2006 state fiscal year and
$423,350,000.00 by $1,115,875,000.00. For the 2006-2007 state
fiscal year only, the total combined distribution under this
subsection and section 10 of article IX of the state constitution
of 1963 shall be the lesser of 100%, or the percentage determined
under this subsection, of the total combined distribution under
this subsection and section 10 of article IX of the state
constitution of 1963 for the 2005-2006 state fiscal year. For the
2006-2007 state fiscal year, the percentage under this subsection
shall be determined by dividing the sum of all payments under
section 10 of article IX of the state constitution of 1963 for the
2006-2007 state fiscal year and $407,485,000.00 by
$1,106,410,000.00. The amount of the adjustment under this
subsection shall be accomplished by reducing the payments under
subsections (8) to (13), and payments under section 10 of article
IX of the state constitution of 1963 shall not be reduced based on
any adjustments made under this subsection.
(8) Subject to section 13d, for the 1998-1999 through 2006-
2007 state fiscal years, for cities, villages, and townships with
populations of less than 750,000, subject to the limitations under
this section, a taxable value payment shall be made to each city,
village, and township determined as follows:
(a) Determine the per capita taxable value for each city,
village, and township by dividing the taxable value of that city,
village, or township by the population of that city, village, or
township.
(b) Determine the statewide per capita taxable value by
dividing the total taxable value of all cities, villages, and
townships by the total population of all cities, villages, and
townships.
(c) Determine the per capita taxable value ratio for each
city, village, and township by dividing the statewide per capita
taxable value by the per capita taxable value for that city,
village, or township.
(d) Determine the adjusted taxable value population for each
city, village, and township by multiplying the per capita taxable
value ratio as determined under subdivision (c) for that city,
village, or township by the population of that city, village, or
township.
(e) Determine the total statewide adjusted taxable value
population which is the sum of all adjusted taxable value
population for all cities, villages, and townships.
(f) Determine the taxable value payment rate by dividing
74.94% of 21.3% of the sales tax collections at a rate of 4% in the
12-month period ending June 30 of the state fiscal year in which
the payments under this subsection are made by 3, and dividing that
result by the total statewide adjusted taxable value population as
determined under subdivision (e).
(g) Determine the taxable value payment for each city,
village, and township by multiplying the result under subdivision
(f) by the adjusted taxable value population for that city,
village, or township.
(9) Subject to section 13d, for the 1998-1999 through 2005-
2006 state fiscal years and for the period of October 1, 2006
through September 30, 2007, subject to the limitations under this
section and except as provided in subsection (14), a unit type
population payment shall be made to each city, village, and
township with a population of less than 750,000 determined as
follows:
(a) Determine the unit type population weight factor for each
city, village, and township as follows:
(i) For a township with a population of 5,000 or less, the unit
type population weight factor is 1.0.
(ii) For a township with a population of more than 5,000 but
less than 10,001, the unit type population weight factor is 1.2.
(iii) For a township with a population of more than 10,000 but
less than 20,001, the unit type population weight factor is 1.44.
(iv) For a township with a population of more than 20,000 but
less than 40,001, the unit type population weight factor is 1.73.
(v) For a township with a population of more than 40,000 but
less than 80,001, the unit type population weight factor is 2.07.
(vi) For a township with a population of more than 80,000, the
unit type population weight factor is 2.49.
(vii) For a village with a population of 5,000 or less, the
unit type population weight factor is 1.5.
(viii) For a village with a population of more than 5,000 but
less than 10,001, the unit type population weight factor is 1.8.
(ix) For a village with a population of more than 10,000, the
unit type population weight factor is 2.16.
(x) For a city with a population of 5,000 or less, the unit
type population weight factor is 2.5.
(xi) For a city with a population of more than 5,000 but less
than 10,001, the unit type population weight factor is 3.0.
(xii) For a city with a population of more than 10,000 but less
than 20,001, the unit type population weight factor is 3.6.
(xiii) For a city with a population of more than 20,000 but less
than 40,001, the unit type population weight factor is 4.32.
(xiv) For a city with a population of more than 40,000 but less
than 80,001, the unit type population weight factor is 5.18.
(xv) For a city with a population of more than 80,000 but less
than 160,001, the unit type population weight factor is 6.22.
(xvi) For a city with a population of more than 160,000 but
less than 320,001, the unit type population weight factor is 7.46.
(xvii) For a city with a population of more than 320,000 but
less than 640,001, the unit type population weight factor is 8.96.
(xviii) For a city with a population of more than 640,000, the
unit type population weight factor is 10.75.
(b) Determine the adjusted unit type population for each city,
village, and township by multiplying the unit type population
weight factor for that city, village, or township as determined
under subdivision (a) by the population of the city, village, or
township.
(c) Determine the total statewide adjusted unit type
population, which is the sum of the adjusted unit type population
for all cities, villages, and townships.
(d) Determine the unit type population payment rate by
dividing 74.94% of 21.3% of the sales tax collections at a rate of
4% in the 12-month period ending June 30 of the state fiscal year
in which the payments under this subsection are made by 3, and then
dividing that result by the total statewide adjusted unit type
population as determined under subdivision (c).
(e) Determine the unit type population payment for each city,
village, and township by multiplying the result under subdivision
(d) by the adjusted unit type population for that city, village, or
township.
(10) Subject to section 13d, for the 1998-1999 through 2005-
2006 state fiscal years and for the period of October 1, 2006
through September 30, 2007, subject to the limitations under this
section, a yield equalization payment shall be made to each city,
village, and township with a population of less than 750,000
sufficient to provide the guaranteed tax base for a local tax
effort not to exceed 0.02. The payment shall be determined as
follows:
(a) The guaranteed tax base is the maximum combined state and
local per capita taxable value that can be guaranteed in a state
fiscal year to each city, village, and township for a local tax
effort not to exceed 0.02 if an amount equal to 74.94% of 21.3% of
the state sales tax at a rate of 4% is distributed to cities,
villages, and townships whose per capita taxable value is below the
guaranteed tax base.
(b) The full yield equalization payment to each city, village,
and township is the product of the amounts determined under
subparagraphs (i) and (ii):
(i) An amount greater than zero that is equal to the difference
between the guaranteed tax base determined in subdivision (a) and
the per capita taxable value of the city, village, or township.
(ii) The local tax effort of the city, village, or township,
not to exceed 0.02, multiplied by the population of that city,
village, or township.
(c) The yield equalization payment is the full yield
equalization payment divided by 3.
(11)
For state fiscal years after the 1997-1998 through 2006-
2007
state fiscal year years,
distributions under this section for
cities, villages, and townships with populations of less than
750,000 shall be determined as follows:
(a) For the 1998-1999 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Ninety percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 1998-1999
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Ten percent of the total amount available for distribution
under subsections (8), (9), and (10) for the 1998-1999 state fiscal
year multiplied by the percentage share of the distribution amounts
calculated under subsections (8), (9), and (10).
(b) For the 1999-2000 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Eighty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 1999-2000
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Twenty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 1999-2000
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distribution amounts calculated
under subsections (8), (9), and (10).
(c) For the 2000-2001 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Seventy percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2000-2001
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Thirty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2000-2001
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(d) For the 2001-2002 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Sixty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2001-2002
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Forty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2001-2002
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(e) For the 2002-2003 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Fifty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2002-2003
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Fifty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2002-2003
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(f) For the 2003-2004 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Forty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2003-2004
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Sixty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2003-2004
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(g) For the 2004-2005 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Thirty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2004-2005
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Seventy percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2004-2005
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(h) For the 2005-2006 state fiscal year, the payment under
this section for each city, village, and township shall be the sum
of the following:
(i) Twenty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2005-2006
state fiscal year multiplied by the city's, village's, or
township's percentage share of the distributions under this section
and section 12a minus the amount of a distribution under this
section and section 12a to a city that is eligible to receive a
distribution under subsection (6) in the 1997-1998 state fiscal
year.
(ii) Eighty percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2005-2006
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(i) For the period of October 1, 2006 through September 30,
2007, the payment under this section for each city, village, and
township shall be the sum of the following:
(i) Ten percent of the total amount available for distribution
under subsections (8), (9), and (10) for the 2006-2007 state fiscal
year multiplied by the city's, village's, or township's percentage
share of the distributions under this section and section 12a minus
the amount of a distribution under this section and section 12a to
a city that is eligible to receive a distribution under subsection
(6) in the 1997-1998 state fiscal year.
(ii) Ninety percent of the total amount available for
distribution under subsections (8), (9), and (10) for the 2006-2007
state fiscal year multiplied by the percentage share of the
distribution amounts calculated under subsections (8), (9), and
(10).
(12) Except as otherwise provided in this subsection, before
September 30, 2011, the total payment to any city, village, or
township under this act and section 10 of article IX of the state
constitution of 1963 shall not increase by more than 8% over the
amount of the payment under this act and section 10 of article IX
of the state constitution of 1963 in the immediately preceding
state fiscal year. From the amount not distributed because of the
limitation imposed by this subsection, the department of treasury
shall distribute an amount to certain cities, villages, and
townships such that the percentage increase in the total payment
under this act and section 10 of article IX of the state
constitution of 1963 from the immediately preceding state fiscal
year to each of those cities, villages, and townships is equal to,
but does not exceed, the percentage increase from the immediately
preceding state fiscal year of any city, village, or township that
does not receive a distribution under this subsection. This
subsection does not apply for state fiscal years after the 2000
federal decennial census becomes official to a city, village, or
township with a 10% or more increase in population from the
official 1990 federal decennial census to the official 2000 federal
decennial census.
(13) The percentage allocations to distributions under
subsections (8) to (10) pursuant to subsection (11) shall be
calculated as if, in any state fiscal year, the amount appropriated
under this section for distribution to cities, villages, and
townships is 74.94% of 21.3% of the sales tax at a rate of 4%. If
the amount appropriated under this section to cities, villages, and
townships is less than 74.94% of 21.3% of the sales tax at a rate
of 4%, any reduction made necessary by this appropriation in
distributions to cities, villages, and townships shall first be
applied to the distribution under subsections (8) to (10) and any
remaining amount shall be applied to the other distributions under
this section.
(14)
A Before September 30, 2011, a township that provides
for
or makes available fire, police on a 24-hour basis either through
contracting for or directly employing personnel, water to 50% or
more of its residents, and sewer services to 50% or more of its
residents and has a population of 10,000 or more or a township that
has a population of 20,000 or more shall use the unit type
population weight factor under subsection (9)(a) for a city with
the same population as the township.
(15) For a state fiscal year before September 30, 2011 in
which the sales tax collections decrease from the sales tax
collections for the immediately preceding state fiscal year, the
department of treasury shall reduce the amount to be distributed to
a city with a population of 750,000 or more under subsection (6) by
an amount determined by subtracting the amount the city is eligible
for under section 10 of article IX of the state constitution of
1963 for the state fiscal year from $333,900,000.00 and multiplying
that result by the same percentage as the percentage decrease in
sales tax collections for that state fiscal year as compared to
sales tax collections for the immediately preceding state fiscal
year. This subsection does not apply to the 2002-2003 through 2006-
2007 state fiscal years or after September 30, 2011.
(16) Notwithstanding any other provision of this section for
the 1998-1999 state fiscal year, the total combined amount received
by each city, village, and township under this section and section
10 of article IX of the state constitution of 1963 shall not be
less than the combined amount received under this section, section
12a, and section 10 of article IX of the state constitution of 1963
in the 1997-1998 state fiscal year. The increase, if any, for each
city, village, and township from the 1997-1998 state fiscal year,
other than a city that receives a distribution under subsection
(6), shall be reduced by a uniform percentage to the extent
necessary to fund distributions under this subsection.
(17) The payments under subsections (3), (4), and (5) shall be
made during each October, December, February, April, June, and
August. Payments under subsections (3), (4), and (5) shall be based
on collections from the sales tax at the rate of 4% in the 2-month
period ending the prior August 31, October 31, December 31,
February 28, April 30, and June 30, and for the 1996-1997 and 1997-
1998 state fiscal years only, the payments shall be reduced by 1/6
of the total distribution for the state fiscal year under section
12a.
(18) Payments under this section shall be made from revenues
collected during the state fiscal year in which the payments are
made.
(19) Distributions provided for by this act are subject to an
annual appropriation by the legislature.
(20) After the department of treasury has informed a city,
village, or township in writing of the intent to withhold all or a
portion of payments under this section and offered the affected
city, village, or township an opportunity for an informal
conference on the matter, the department of treasury may withhold
all or a portion of payments under this section to a city, village,
or township that has not distributed 1 or more of the following:
(a) An industrial facilities tax as required under 1974 PA
198, MCL 207.551 to 207.572.
(b) The specific tax as required under section 21b of the
enterprise zone act, 1985 PA 224, MCL 125.2121b.
(c) Any portion of the state education tax levied under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, or of
property taxes levied for any purpose by a local or intermediate
school district under the revised school code, 1976 PA 451, MCL
380.1 to 380.1852, determined by the state tax commission to have
been wrongfully captured and retained to implement a tax increment
financing plan under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, or the local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174.
