MI SB1061

Creates the local government reimbursement fund in the state treasury to compensate municipalities for property tax revenue losses from property tax exemptions.

State treasurer deposits money from section 21(7) of the use tax act and other sources into the fund, with investment earnings credited back to the fund; unspent money carries over each fiscal year rather than reverting to the general fund.

Department must compensate municipalities by May 31, 2024, and annually thereafter for revenue lost in the preceding property tax year due to exemptions claimed under section 9o(2)(b) of the general property tax act.

If fund balance is insufficient to fully compensate all eligible municipalities, payments are prorated proportionally among them.

Bill takes effect only if Senate Bills 1060 and 1062 of the 101st Legislature are also enacted into law.