Bill Text: MI SB1018 | 2017-2018 | 99th Legislature | Introduced

---

Bill Title: Property tax; local community stabilization share; distribution of local community stabilization share; modify. Amends secs. 5 & 17 of 2014 PA 86 (MCL 123.1345 & 123.1357).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-05-17 - Referred To Committee On Appropriations [SB1018 Detail]

Download: Michigan-2017-SB1018-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1018

 

 

May 17, 2018, Introduced by Senator YOUNG and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 2014 PA 86, entitled

 

"Local community stabilization authority act,"

 

by amending sections 5 and 17 (MCL 123.1345 and 123.1357), section

 

5 as amended by 2015 PA 122 and section 17 as amended by 2017 PA

 

102.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. As used in this act:

 

     (a) "Acquisition cost" means that term as defined in section 3

 

of the state essential services assessment act, 2014 PA 92, MCL

 

211.1053, multiplied by the following percentages:

 

     (i) For eligible personal property reported to the department

 

and described in section 5(2)(a) of the state essential services

 

assessment act, 2014 PA 92, MCL 211.1055, 100%.

 

     (ii) For eligible personal property reported to the department

 

and described in section 5(2)(b) of the state essential services

 

assessment act, 2014 PA 92, MCL 211.1055, 52.1%.

 

     (iii) For eligible personal property reported to the

 

department and described in section 5(2)(c) of the state essential

 

services assessment act, 2014 PA 92, MCL 211.1055, 37.5%.

 

     (b) "Ambulance services" means patient transport services,

 

nontransport prehospital life support services, and advanced life

 

support, paramedic, and medical first-responder services.

 

     (c) "Authority" means the local community stabilization

 

authority, a metropolitan authority established under section 7.

 

     (d) "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 125.2651 to 125.2672,

 

125.2670, captured taxable value as determined in sections 2 and 7

 

of the brownfield redevelopment financing act, 1996 PA 381, MCL

 

125.2652 and 125.2657.

 

     (ii) For a tax increment finance authority under 1975 PA 197,

 

MCL 125.1651 to 125.1681, captured assessed value as defined in

 

section 1 of 1975 PA 197, MCL 125.1651.

 

     (iii) For a tax increment finance authority under the tax

 

increment finance authority act, 1980 PA 450, MCL 125.1801 to

 

125.1830, captured assessed value as defined in section 1 of the

 

tax increment finance authority act, 1980 PA 450, MCL 125.1801.

 

     (iv) For a tax increment finance authority under the local

 

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,

 

captured assessed value as defined in section 2 of the local

development financing act, 1986 PA 281, MCL 125.2152.

 

     (v) For a tax increment finance authority under the historic

 

neighborhood tax increment finance authority act, 2004 PA 530, MCL

 

125.2841 to 125.2866, captured assessed value as defined in section

 

2 of the historic neighborhood tax increment finance authority act,

 

2004 PA 530, MCL 125.2842.

 

     (vi) For a tax increment finance authority under the corridor

 

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899,

 

captured assessed value as defined in section 2 of the corridor

 

improvement authority act, 2005 PA 280, MCL 125.2872.

 

     (vii) For a tax increment finance authority under the

 

neighborhood improvement authority act, 2007 PA 61, MCL 125.2911 to

 

125.2932, captured assessed value as defined in section 2 of the

 

neighborhood improvement authority act, 2007 PA 61, MCL 125.2912.

 

     (viii) For a tax increment finance authority under the water

 

resource improvement tax increment finance authority act, 2008 PA

 

94, MCL 125.1771 to 125.1793, captured assessed value as defined in

 

section 2 of the water resource improvement tax increment finance

 

authority act, 2008 PA 94, MCL 125.1772.

 

     (ix) For a tax increment finance authority under the private

 

investment infrastructure funding act, 2010 PA 250, MCL 125.1871 to

 

125.1883, captured assessed value as defined in section 2 of the

 

private investment infrastructure funding act, 2010 PA 250, MCL

 

125.1872.

 

     (x) For a tax increment finance authority under the nonprofit

 

street railway act, 1867 PA 35, MCL 472.1 to 472.27, captured

 

assessed value as defined in section 23 of the nonprofit street

railway act, 1867 PA 35, MCL 472.23.

 

     (e) "Commercial personal property" means, except as otherwise

 

provided in subparagraph (iii), all of the following:

 

     (i) Personal property classified as commercial personal

 

property under section 34c of the general property tax act, 1893 PA

 

206, MCL 211.34c.

 

     (ii) Personal property subject to the industrial facilities

 

tax under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is

 

sited on land classified as commercial real property under section

 

34c of the general property tax act, 1893 PA 206, MCL 211.34c.

 

     (iii) Commercial personal property does not include personal

 

property that after 2012 was classified in the municipality where

 

it is currently located as real property or utility personal

 

property.

 

     (f) "Council" means the council established for the authority

 

under section 9.

 

     (g) "Debt 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 211.9m, 211.9n, and 211.9o.

 

     (h) "Department" means the department of treasury.

     (i) "Eligible personal property" means personal property

 

described in section 3(e)(i), (iii), and (iv) of the state

 

essential services assessment act, 2014 PA 92, MCL 211.1053.

 

     (j) "Essential services" means all of the following:

 

     (i) Ambulance services.

 

     (ii) Fire services.

 

     (iii) Police services.

 

     (iv) Jail operations.

 

     (v) The funding of pensions for personnel providing services

 

described in subparagraphs (i) to (iv).

 

     (k) "Fire services" means services in the prevention and

 

suppression of fire, homeland security response, hazardous

 

materials response, rescue, fire marshal, and medical first-

 

responder services.

 

     (l) "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.

 

     (m) "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 211.7k, 211.7ff, and 211.9f,

 

after 2013 if the exemptions under section 9m, 9n, or 9o of the

 

general property tax act, 1893 PA 206, MCL 211.9m, 211.9n, and

 

211.9o, were not in effect. In order for an anticipated increase in

captured value to qualify as increased captured value, the tax

 

increment financing plan must have demonstrated before 2013 that

 

the tax increment finance authority was relying on this anticipated

 

increase in captured value to pay 1 or more qualified obligations

 

by specifically projecting the anticipated increase in captured

 

value that would be used to pay the qualified obligations and the

 

plan must meet all of the following:

 

     (i) The tax increment financing plan was fully approved by the

 

governing body of the applicable local government not later than

 

December 31, 2012. This does not prevent subsequent amendment to

 

the tax increment financing plan, provided the amendment does not

 

change the amount of any obligation under the plan, the scope of

 

the project or projects described in the plan, or the time needed

 

to repay any obligation.

 

     (ii) If the tax increment financing plan is part of a

 

brownfield plan under the brownfield redevelopment financing act,

 

1996 PA 381, MCL 125.2651 to 125.2672, 125.2670, any needed work

 

plans were also approved by the appropriate state agencies not

 

later than December 31, 2012. This does not prevent subsequent

 

amendment to a work plan, provided the amendment does not change

 

the amount of any obligation under the plan, the scope of the

 

project or projects described in the plan, or the time needed to

 

repay any obligation.

 

     (iii) The tax increment financing plan identifies a particular

 

site owner and site occupant that is engaged in industrial

 

processing or direct integrated support, as defined in section 9m

 

of the general property tax act, 1893 PA 206, MCL 211.9m. This does

not preclude a change in the site owner or occupant, provided that

 

change in the site owner or occupant did not result from a

 

financial difficulty encountered during the construction and

 

installation of the project and provided change in the site owner

 

or occupant will not result in any change in the project.

 

     (iv) The tax increment financing plan identifies a particular

 

project on a specific parcel and that project includes the addition

 

of particular personal property that is eligible manufacturing

 

personal property, as defined in section 9m of the general property

 

tax act, 1893 PA 206, MCL 211.9m, that is also identified in the

 

tax increment financing plan.

 

     (v) The personal property that is eligible manufacturing

 

personal property, as defined in section 9m of the general property

 

tax act, 1893 PA 206, MCL 211.9m, and is identified in the tax

 

increment financing plan comprises not less than 20% of the true

 

cash value of the improvements to be made as part of the specific

 

project identified in the tax increment financing plan. The

 

requirement under this subparagraph does not apply to the addition

 

of personal property as a result of the expiration of an exemption

 

under section 7k, 7ff, or 9f of the general property tax act, 1893

 

PA 206, MCL 211.7k, 211.7ff, and 211.9f.

 

     (vi) Before December 31, 2012, the specific project identified

 

in the tax increment financing plan had obtained all necessary

 

local zoning approvals, including any necessary rezoning, special

 

land use, and site plan approvals for that project.

 

     (vii) Before December 31, 2012, orders had been placed and

 

significant investments made in the personal property that is

eligible manufacturing personal property, as defined in section 9m

 

of the general property tax act, 1893 PA 206, MCL 211.9m, to be

 

located on the site.

 

     (n) "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

 

211.9m and 211.9n, were not in effect as a result of the expiration

 

of an exemption under section 7k, 7ff, or 9f of the general

 

property tax act, 1893 PA 206, MCL 211.7k, 211.7ff, and 211.9f,

 

that had been in effect in 2013, assuming an exemption under

 

section 7k of the general property tax act, 1893 PA 206, MCL

 

211.7k, was not extended under section 11a of 1974 PA 198, MCL

 

207.561a, and an exemption under section 9f of the general property

 

tax act, 1893 PA 206, MCL 211.9f, was not extended under section

 

9f(8) of the general property tax act, 1893 PA 206, MCL 211.9f.

 

     (o) "Industrial personal property" means, except as otherwise

 

provided in subparagraph (iii), all of the following:

 

     (i) Personal property classified as industrial personal

 

property under section 34c of the general property tax act, 1893 PA

 

206, MCL 211.34c.

 

     (ii) Personal property subject to the industrial facilities

 

tax under section 14(1) or (4) of 1974 PA 198, MCL 207.564, that is

 

sited on land classified as industrial real property under section

 

34c of the general property tax act, 1893 PA 206, MCL 211.34c.

 

     (iii) Industrial personal property does not include personal

property that after 2012 was classified in the municipality where

 

it is currently located as real property or utility personal

 

property.

 

     (p) "Jail operations" means all of the following:

 

     (i) The operation of a jail, holding cell, holding center, or

 

lockup as those terms are defined in section 62 of the corrections

 

code of 1953, 1953 PA 232, MCL 791.262.

 

     (ii) The operation of a juvenile detention facility by a

 

county juvenile agency as authorized under section 7 of the county

 

juvenile agency act, 1998 PA 518, MCL 45.627.

 

     (q) "Local community stabilization share" means that portion

 

of the use tax levied by the authority and authorized under the use

 

tax act, 1937 PA 94, MCL 205.91 to 205.111.

 

     (r) "Municipality" includes, but is not limited to, the

 

following:

 

     (i) Counties.

 

     (ii) Cities.

 

     (iii) Villages.

 

     (iv) Townships.

 

     (v) Authorities, excluding an authority created under this

 

act.

 

     (vi) Local school districts.

 

     (vii) Intermediate school districts.

 

     (viii) Community college districts.

 

     (ix) Libraries.

 

     (x) Other local and intergovernmental taxing units.

 

     (s) "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. The calculation under

 

this subparagraph must be modified for municipality boundary

 

changes to the extent that the boundary changes affect the property

 

taxes levied by the municipality.

 

     (ii) For a municipality that is 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.

 

The calculation under this subparagraph must be modified for

 

municipality boundary changes to the extent that the boundary

 

changes affect the property taxes levied by the municipality.

 

     (t) "Police services" means law enforcement services for the

 

prevention and detection of crime, the enforcement of laws and

 

ordinances, homeland security response, and medical first-responder

 

services.

 

     (u) "Qualified loss" means the amounts calculated under

 

section 14(1) that are not distributed to the municipality under

 

section 17(4)(a).

 

     (v) "Qualified obligation" means a written promise to pay by a

 

tax increment finance authority, whether evidenced by a contract,

agreement, lease, sublease, bond, resolution promising repayment of

 

an advance, or note, or a requirement to pay imposed by law. A

 

qualified obligation does not include a payment required solely

 

because of default upon an obligation, employee salary, or

 

consideration paid for the use of municipal offices. A qualified

 

obligation does not include bonds that have been economically

 

defeased by refunding.

 

     (w) "School debt loss" means the amount of revenue lost from

 

ad valorem property taxes and any specific tax specifically levied

 

for the payment of principal and interest of obligations approved

 

by the electors before January 1, 2013 or obligations pledging the

 

unlimited taxing power of a local school district or intermediate

 

school district incurred before January 1, 2013, 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 211.9m, 211.9n, and 211.9o.

 

     (x) "School operating loss not reimbursed by the school aid

 

fund" means the amount of revenue lost from ad valorem property

 

taxes levied under section 1211 of the revised school code, 1976 PA

 

451, MCL 380.1211, 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

 

211.9m, 211.9n, and 211.9o, for mills other than basic school

 

operating mills, as that term is defined in section 2c of the use

 

tax act, 1937 PA 94, MCL 205.92c.

 

     (y) "Small taxpayer exemption loss" means 1 of the following:

 

     (i) For the 2014 calendar year, 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. The calculation under this

 

subparagraph must be modified for municipality boundary changes to

 

the extent that the boundary changes affect the property taxes

 

levied by the municipality.

 

     (ii) For the 2015 calendar year and subsequent calendar years,

 

the greater of the amount calculated under subparagraph (i) and the

 

2013 taxable value of commercial personal property and industrial

 

personal property minus the 2015 taxable value of commercial

 

personal property and industrial personal property. The calculation

 

under this subparagraph must be modified for municipality boundary

 

changes to the extent that the boundary changes affect the property

 

taxes levied by the municipality.

 

     (z) "Specific tax" means a tax levied under 1974 PA 198, MCL

 

207.551 to 207.572.

 

     (aa) "Tax increment finance authority" means an authority

 

created under 1 or more of the following:

 

     (i) 1975 PA 197, MCL 125.1651 to 125.1681.

 

     (ii) The tax increment finance authority act, 1980 PA 450, MCL

 

125.1801 to 125.1830.

 

     (iii) The local development financing act, 1986 PA 281, MCL

 

125.2151 to 125.2174.

 

     (iv) The brownfield redevelopment financing act, 1996 PA 381,

 

MCL 125.2651 to 125.2672.125.2670.

 

     (v) The historic neighborhood tax increment finance authority

 

act, 2004 PA 530, MCL 125.2841 to 125.2866.

     (vi) The corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (vii) The neighborhood improvement authority act, 2007 PA 61,

 

MCL 125.2911 to 125.2932.

 

     (viii) The water resource improvement tax increment finance

 

authority act, 2008 PA 94, MCL 125.1771 to 125.1793.

 

     (ix) The private investment infrastructure funding act, 2010

 

PA 250, MCL 125.1871 to 125.1883.

 

     (x) The nonprofit street railway act, 1867 PA 35, MCL 472.1 to

 

472.27.

 

     (bb) "Tax 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 211.9o.

 

     (cc) "Taxable value" means all of the following:

 

     (i) Except as otherwise provided in subparagraph (ii), that

 

value determined under section 27a of the general property tax act,

 

1893 PA 206, MCL 211.27a.

 

     (ii) For real or personal property subject to the industrial

 

facilities tax under section 14(3) or (4) of 1974 PA 198, MCL

 

207.564, 50% of that value determined under section 27a of the

 

general property tax act, 1893 PA 206, MCL 211.27a.

 

     (dd) "Total qualified loss" means the total amount of

 

qualified losses of all municipalities, as determined by the

 

department.

 

     (ee) "Utility personal property" means that term as described

 

in section 34c of the general property tax act, 1893 PA 206, MCL

211.34c.

 

     Sec. 17. (1) The legislature shall appropriate funds for all

 

of the following purposes:

 

     (a) For fiscal year 2014-2015 and fiscal year 2015-2016, to

 

the authority, an amount equal to all debt loss for municipalities

 

that are not a local school district, intermediate school district,

 

or tax increment finance authority, an amount equal to all school

 

debt loss for municipalities that are a local school district or

 

intermediate school district, and an amount equal to all tax

 

increment small taxpayer loss for municipalities that are a tax

 

increment finance authority. Funds appropriated under this

 

subdivision for fiscal year 2015-2016 may be used to pay a

 

corrected tax increment small taxpayer exemption loss for 2014 if a

 

tax increment finance authority submits before June 1, 2016 a

 

correction to a report that was filed under section 16a before

 

October 1, 2014.

 

     (b) For fiscal year 2014-2015 through fiscal year 2018-2019 an

 

amount equal to the necessary expenses incurred by the department

 

in implementing this act.

 

     (c) Beginning in fiscal year 2019-2020 and each fiscal year

 

thereafter, an amount equal to the necessary expenses incurred by

 

the authority and the department in implementing this act.

 

     (2) In fiscal year 2014-2015 and fiscal year 2015-2016, the

 

authority shall distribute to municipalities those funds

 

appropriated under subsection (1)(a). However, in fiscal year 2014-

 

2015, if the authority is not able to make the distribution under

 

this subsection, the department shall make the distribution under

this subsection on behalf of the authority.

 

     (3) For calendar years 2014 and 2015, the authority shall

 

distribute local community stabilization share revenue to each city

 

in an amount determined by multiplying the sum of the local

 

community stabilization share revenue for the calendar years and

 

the amounts calculated under section 14(3)(e) and (f) by a

 

fraction, the numerator of which is that city's amount calculated

 

under section 14(3)(d) and the denominator of which is the total

 

amount calculated under section 14(3)(d), and subtracting from the

 

result each city's amounts calculated under section 14(3)(e) and

 

(f).

 

     (4) Beginning for calendar year 2016, the authority shall

 

distribute local community stabilization share revenue as follows

 

in the following order of priority:

 

     (a) The authority shall distribute to each municipality an

 

amount equal to all of the following:

 

     (i) 100% of that municipality's school debt loss in the

 

current year and 100% of its amount calculated under section 15.

 

     (ii) 100% of that municipality's amount calculated under

 

section 16.

 

     (iii) 100% of that municipality's school operating loss not

 

reimbursed by the school aid fund in the current year.

 

     (iv) 100% of the amount calculated in section 14(2). However,

 

the amount distributed to a municipality under this subparagraph

 

shall not exceed the amount calculated in section 14(1)(d). All

 

distributions under this subparagraph shall be used to fund

 

essential services.

     (v) For a municipality that is a tax increment finance

 

authority, 100% of its amount calculated under section 16a(2).

 

     (vi) 100% of that municipality's amount calculated under

 

section 14(4).

 

     (b) Beginning for calendar year 2019, after the distributions

 

under subdivision (a), and subject to subparagraph (viii), the

 

authority shall distribute an amount equal to 5% of the remaining

 

balance of the local community stabilization share fund total

 

qualified loss for the current calendar year to each municipality

 

that is not a local school district, intermediate school district,

 

or tax increment finance authority in an amount determined as

 

follows:

 

     (i) Calculate the total acquisition cost of all eligible

 

personal property in the municipality.

 

     (ii) Multiply the result of the calculation in subparagraph

 

(i) by the sum of the lowest rate of each individual millage levied

 

by the municipality in the period between 2012 and the year

 

immediately preceding the current year that is not used to

 

calculate a distribution under subdivision (a)(i) to (iv). For an

 

individual millage rate not levied in 1 of the years, the lowest

 

millage rate is zero. A millage used to make the calculation under

 

this subparagraph must be eligible to be levied against both real

 

property and personal property.

 

     (iii) Divide the sum of the amounts calculated under

 

subparagraph (ii) for all municipalities subject to the calculation

 

by total qualified loss.

 

     (iv) Multiply the result of the calculation in subparagraph

(iii) by the amount calculated under section 16a(2) for captured

 

taxes levied by the municipality not including taxes attributable

 

to increased captured value.

 

     (v) Subtract from the amount calculated under subparagraph

 

(ii) the amount calculated under subparagraph (iv).

 

     (vi) Divide the result of the calculation in subparagraph (v)

 

by the sum of the calculation under subparagraph (v) for all

 

municipalities.

 

     (vii) Multiply the result of the calculation in subparagraph

 

(vi) by the amount to be distributed under this subdivision.

 

     (viii) For calendar year 2020, and each calendar year

 

thereafter, the percentage amount described in this subdivision

 

shall be increased an additional 5% each year, not to exceed 100%.

 

     (c) After For calendar years 2016 and 2017, after the

 

distributions in subdivisions (a) and (b), the authority shall

 

distribute the remaining balance of the local community

 

stabilization share fund for a calendar year to each municipality

 

in an amount determined by multiplying the remaining balance by a

 

fraction, the numerator of which is that municipality's qualified

 

loss and the denominator of which is the total qualified loss.

 

Beginning for calendar year 2018, after the distributions in

 

subdivisions (a) and (b), the authority shall distribute local

 

community stabilization share revenue under this subdivision to

 

each municipality in an amount determined by multiplying total

 

qualified loss minus the total amount distributed in subdivision

 

(b) for a calendar year by a fraction, the numerator of which is

 

that municipality's qualified loss and the denominator of which is

the total qualified loss.

 

     (d) Beginning for calendar year 2018, after the distributions

 

in subdivisions (a), (b), and (c), the authority shall distribute

 

the remaining balance of the local community stabilization share

 

fund for a calendar year as follows:

 

     (i) Distribute $15,000,000.00 to municipalities with state

 

facilities under the fire protection services for state facilities

 

act, 1977 PA 289, MCL 141.951 to 141.956. The director of the

 

department of technology, management, and budget shall certify to

 

the department the amounts to be paid to municipalities under this

 

subparagraph. The amount distributed under this subparagraph shall

 

be reduced by the amount appropriated for the state fiscal year in

 

which the payments under this section are made for payments under

 

the fire protection services for state facilities act, 1977 PA 289,

 

MCL 141.951 to 141.956, from the fire protection fund established

 

under section 732a of the Michigan vehicle code, 1949 PA 300, MCL

 

257.732a.

 

     (ii) After the distributions in subparagraph (i), distribute

 

the remaining balance in accordance with sub-subparagraphs (A) to

 

(E), subject to sub-subparagraphs (F) and (G), as follows:

 

     (A) Distribute an amount equal to 30% of the remaining balance

 

to counties, as follows: 50% of that amount, each county's share in

 

proportion to its population as a percentage of the total

 

population of all counties; and 50% of that amount, each county's

 

share in proportion to its qualified loss as a percentage of the

 

combined qualified loss of all counties.

 

     (B) Distribute an amount equal to 48% of the remaining balance

to cities, as follows: 50% of that amount, each city's share in

 

proportion to its population as a percentage of the total

 

population of all cities; and 50% of that amount, each city's share

 

in proportion to its qualified loss as a percentage of the combined

 

qualified loss of all cities.

 

     (C) Distribute an amount equal to 2% of the remaining balance

 

to villages, as follows: 50% of that amount, each village's share

 

in proportion to its population as a percentage of the total

 

population of all villages; and 50% of that amount, each village's

 

share in proportion to its qualified loss as a percentage of the

 

combined qualified loss of all villages.

 

     (D) Distribute an amount equal to 5% of the remaining balance

 

to townships, as follows: 50% of that amount, each township's share

 

in proportion to its population as a percentage of the total

 

population of all townships; and 50% of that amount, each

 

township's share in proportion to its qualified loss as a

 

percentage of the combined qualified loss of all townships.

 

     (E) Distribute an amount equal to 15% of the remaining balance

 

to community colleges, as follows: 50% of that amount, each

 

community college's share in proportion to its total fiscal year

 

equated students as a percentage of the total fiscal year equated

 

students for all community colleges; and 50% of that amount, each

 

community college's share in proportion to its qualified loss as a

 

percentage of the combined qualified loss of all community

 

colleges.

 

     (F) For purposes of sub-subparagraphs (A) to (D), population

 

shall be determined in the same manner as under section 3 of the

Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL

 

141.903. In addition, any city or village that according to the

 

most recent federal decennial census is determined to have

 

population in more than 1 county shall be treated as a single

 

entity when determining the distribution to the city or village

 

under this subparagraph.

 

     (G) For purposes of sub-subparagraph (E), fiscal year equated

 

students for each community college shall be determined by the

 

department of education as reported in the state community college

 

database commonly known as the "activities classification

 

structure" or "ACS" database pursuant to section 217 of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1817.

 

     (5) The authority shall make the payments required by

 

subsection (3) not later than May 20, 2016, and payments required

 

by subsection (4) not later than on the following dates:

 

     (a) For county allocated millage, November 20, 2017, and

 

thereafter September October 20 of the year the millage is levied.

 

     (b) For county extra-voted millage, township millage, and

 

other millages levied 100% in December of a year, February 20 of

 

the following year.

 

     (c) For other millages, November 20, 2017, and thereafter

 

October 20 of the year the millage is levied.

 

     (d) For payments required under subsection (4)(d)(i), November

 

30 of each year.

 

     (e) For payments required under subsection (4)(d)(ii), May 20

 

of the following year.

 

     (6) If the authority has insufficient funds to make the

payments on the dates required in subsection (5), the department

 

shall advance to the authority the amount necessary for the

 

authority to make the required payments. The authority shall repay

 

the advance to the department from the local community

 

stabilization share.

 

     (7) For each fiscal year from fiscal year 2015-2016 through

 

fiscal year 2018-2019, the authority may use up to $300,000.00 of

 

the local community stabilization share revenue for purposes

 

consistent with implementing and administering this act.

 

     (8) The authority shall distribute local community

 

stabilization share revenue under this section as follows:

 

     (a) From fiscal year 2015-2016 local community stabilization

 

share revenue, $19,200,000.00 for calendar years 2014 and 2015 and

 

$76,900,000.00 for calendar year 2016.

 

     (b) From fiscal year 2016-2017 local community stabilization

 

share revenue, $297,400,000.00 for calendar year 2016 and

 

$83,200,000.00 for calendar year 2017.

 

     (c) From fiscal year 2017-2018 local community stabilization

 

share revenue, $321,500,000.00 for calendar year 2017 and

 

$89,000,000.00 for calendar year 2018.

 

     (d) From fiscal year 2018-2019 local community stabilization

 

share revenue, $341,800,000.00 for calendar year 2018 and

 

$95,900,000.00 for calendar year 2019.

 

     (e) From fiscal year 2019-2020 local community stabilization

 

share revenue, $364,500,000.00 for calendar year 2019 and

 

$101,400,000.00 for calendar year 2020.

 

     (f) From fiscal year 2020-2021 local community stabilization

share revenue, $383,500,000.00 for calendar year 2020 and

 

$108,000,000.00 for calendar year 2021.

 

     (g) From fiscal year 2021-2022 local community stabilization

 

share revenue, $405,700,000.00 for calendar year 2021 and

 

$115,600,000.00 for calendar year 2022.

 

     (h) From fiscal year 2022-2023 local community stabilization

 

share revenue, $428,300,000.00 for calendar year 2022 and

 

$119,700,000.00 for calendar year 2023.

 

     (i) From fiscal year 2023-2024 local community stabilization

 

share revenue, $438,900,000.00 for calendar year 2023 and

 

$122,800,000.00 for calendar year 2024.

 

     (j) From fiscal year 2024-2025 local community stabilization

 

share revenue, $445,800,000.00 for calendar year 2024 and

 

$124,000,000.00 for calendar year 2025.

 

     (k) From fiscal year 2025-2026 local community stabilization

 

share revenue, $447,100,000.00 for calendar year 2025 and

 

$124,300,000.00 for calendar year 2026.

 

     (l) From fiscal year 2026-2027 local community stabilization

 

share revenue, $447,700,000.00 for calendar year 2026 and

 

$124,500,000.00 for calendar year 2027.

 

     (m) From fiscal year 2027-2028 local community stabilization

 

share revenue, $448,000,000.00 for calendar year 2027 and

 

$124,600,000.00 for calendar year 2028.

 

     (n) From the local community stabilization share revenue for

 

fiscal year 2028-2029 and each fiscal year thereafter, the

 

authority shall increase the prior fiscal year's 2 distribution

 

amounts under this subsection by the personal property growth

factor, the first amount for the calendar year in which the fiscal

 

year begins and the second amount for the calendar year in which

 

the fiscal year ends. As used in this subdivision, "personal

 

property growth factor" means that term as defined in section 2c of

 

the use tax act, 1937 PA 94, MCL 205.92c.