House Bill 5316 Summary

• Amends the Local Community Stabilization Authority Act to modify distribution of local community stabilization share revenue beginning in calendar year 2016.

• Establishes a priority distribution system where municipalities first receive 100% of school debt loss, school operating losses, and tax increment small taxpayer loss before other distributions.

• Beginning calendar year 2019, distributes 5% of remaining balance annually (increasing by 5% each year up to 100%) to non-school, non-TIF municipalities based on eligible personal property acquisition costs and municipal millage rates.

• For calendar years 2016-2018, distributes remaining balance after priority payments proportionally to municipalities based on qualified losses; beginning 2019, splits remaining balance 65% to cities/villages/townships and 35% to counties.

• Specifies distribution amounts from local community stabilization share revenue for fiscal years 2015-2016 through 2027-2028, with post-2028 amounts adjusted annually by personal property growth factor.