MI HB5908

Modifies distribution formulas for local community stabilization share revenue to municipalities beginning in calendar year 2016, establishing priority-based allocation of funds for school debt loss, tax increment finance amounts, school operating loss, and essential services.

Establishes a new distribution tier beginning in calendar year 2021 that allocates 15% of total qualified loss to eligible municipalities, with the percentage increasing by an additional 5% annually each year thereafter, not to exceed 100%.

Sets specific distribution amounts from fiscal year 2015-2016 through fiscal year 2027-2028, with amounts increasing from $19.2 million in 2014-2015 to $448 million in fiscal year 2027-2028, and directs increases by personal property growth factor thereafter.

Requires municipalities to allocate payments received based on the portion attributable to each millage levied, with portions other than general operating millage recorded as restricted funds.

Establishes error correction procedures allowing municipalities to notify the department of reporting or calculation errors by March 31 following the calendar year in question, with county officials coordinating corrections to personal property taxable values by specified deadlines through 2019.