HB 6090 Summary

• Amends the Glenn Steil state revenue sharing act of 1971 to modify how state revenue distributions to cities, villages, and townships are calculated and distributed.

• Changes the distribution method for sales tax collections after September 30, 2010 to allocate 74.94% of 21.3% of sales tax collections at a 4% rate on a per capita basis rather than through previous formulas.

• Establishes specific dollar amount guarantees for cities with populations of 750,000 or more ($333,900,000.00 for fiscal years 1998-1999 through 2006-2007, with adjustments for specific fiscal years).

• Creates tiered distribution formulas for cities, villages, and townships with populations under 750,000 using taxable value payments, unit type population weights, and yield equalization payments based on guaranteed tax bases.

• Implements an 8% annual cap on payment increases for most jurisdictions (before 2010-2011 fiscal year) and includes provisions allowing the Department of Treasury to withhold payments from municipalities that fail to distribute required industrial facilities taxes, enterprise zone taxes, or property taxes.