MI SB1005

Allows downtown development authorities to request retention of state education tax revenues if personal property tax exemptions reduce their tax increment revenues in a fiscal year.

Authorities must apply to the Department of Treasury by June 1 annually (with special deadlines for 2008 and 2009) to retain and receive state education tax revenues for repaying eligible advances, eligible obligations, and other protected obligations.

Department of Treasury must approve, modify, or deny applications by August 15 annually based on submitted information including projected millage rates, estimated tax increment revenues, and list of obligations; denials require opportunity for discussion within 21 days.

Legislature shall appropriate funds to reimburse authorities for the difference between approved retention amounts and actual taxes retained, or for full calculated amounts if applications are denied.

Distributions made under this section are subject to existing pledges of tax increment revenues and are not a debt or liability of the state.