TIF Legislation Active in Both Chambers

Posted on September 12, 2016 by Dene Westbrook

Newly introduced House legislation would require TIF authorities to undertake additional transparency and reporting requirements as well as eliminate the capturing of special millages. HB 5851-5856 covers DDAs, Water Resource Improvement TIFAs, LDFAs, CIAs, TIFAs and BRAs. The six bill package is on the agenda of the House Local Government Committee for Wednesday, September 14. We have been informed the House committee will be taking testimony only at this hearing, with any action to take place at a later hearing. The League is working with a group of municipalities along with our Economic Development and Land Use Committee to develop our response to this package.

HB 5851-5855 requires each authority, or the municipality which established the authority, to have a website displaying all authority documents (budget, audit, meeting minutes, contracts, events, promotional materials, plans, and more). The bills require a minimum of one informational meeting to take place annual with special noticing of that meeting(s). There are also additional reporting requirements to the annual report sent to the State Tax Commission as well as the requirement to now send this report to all governing bodies of a taxing unit levying taxes captured by an authority. If notified by the State Tax Commission of failure to send the annual report or non-compliance with the reporting requirements, an authority may not capture any tax increment revenues that are in excess of the amount needed for bonds or other obligations.

Additional language in each bill would eliminate the ability for an authority to capture special voted mills similar to what was done for the Detroit Zoo and DIA.

At the same time, we have been very involved in conversations in the Senate on SB 1026. Senator Horn held meetings with the League and various DDAs around the state this summer. It is expected that SB 1026 will be taken up in committee later this month. Recent draft versions have included numerous League suggested amendments. We are encouraged by this progress and hopeful the version brought before the committee will address our concerns.

The League will be working with the House committee on HB 5851-5856 to incorporate the positive progress we have made in SB 1026. It is unknown at this time if either package will move, and what the other chamber’s interest will be in the differing bill approaches. We will continue to keep everyone updated as the situation evolves.

Jennifer Rigterink is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at [email protected] or 517-908-0305.

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