MI HB4553

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

Deposits money and assets received under section 21(7) of the use tax act and from other sources into the fund, with interest and earnings credited to the fund.

Fund balance does not lapse to the general fund at the close of the fiscal year and remains available for appropriation.

Requires the department of treasury to compensate municipalities on or before May 31, 2024, and annually thereafter for revenue lost during the preceding property tax year from exemptions claimed under MCL 211.9o(2)(b).

If fund money is insufficient to fully compensate all eligible municipalities, payments must be prorated amongst them; bill is contingent on enactment of Senate Bill 331 and House Bill 4554.