MI SB1139

Allows local development finance authorities to request state education tax revenues to repay eligible advances, obligations, and protected obligations when personal property tax exemptions reduce school tax capture.

Requires authorities to apply annually to the Department of Treasury by June 1 (or September 30, 2009 for that year only) with specified information including property tax millage rates, estimated tax increment revenues, and lists of obligations requiring payment.

Directs the Department of Treasury to approve, modify, or deny applications by August 15 each year based on substantial compliance with statutory requirements; denials must include opportunity for authority discussion within 21 days.

Requires the legislature to appropriate funds annually to cover the difference between tax increment revenues retained and amounts calculated under the formula, or to reimburse authorities whose applications are denied.

Establishes that distributions or retained taxes replacing pledged tax increment revenues remain subject to existing liens on those revenues, and clarifies that funded obligations do not constitute state debt or liability.