MI HB4463

Establishes transit operations finance zones for street railway systems with city/village/township and department consent, limiting zones to parcels within 1/4 mile of the street railway system.

Requires a three-party agreement between the municipality, street railway, and department that includes zone boundaries, a tax increment financing plan, and specific actions to establish the zone.

Caps tax increment revenue distributed to a street railway at the lesser of 25% of the prior fiscal year's operating deficit or $4,000,000 annually, with revenues restricted to operating expenses only.

Mandates public hearings with at least 20 days' notice before zone establishment and requires municipalities to consult with affected taxing jurisdictions and inform them of fiscal and economic implications.

Requires annual reporting to the state department and tax commission on tax increment revenue sources, expenditures, initial and captured assessed values, and street railway operating expenses; zone terminates if the street railway ceases operations.