Vote Smart's Synopsis:

Vote to pass a bill that reimburses local taxing units for revenue losses due to certain personal property tax exemptions.

Highlights:

• Establishes the personal property tax reimbursement fund within the Michigan State Treasury (Sec. 3).

• Requires local taxing units eligible for reimbursement to submit to the Department of Treasury within 180 days of the end of fiscal year 2012 the following (Sec. 4):
• Number of debt mills levied in fiscal year 2012; and
• Number of voter approved qualified mills by voters prior to 2013 fiscal year or will be levied in the following year.

• Requires the Department of Treasury to prepare an annual estimate for each local taxing unit within a political subdivision that incurred a loss of over 2 percent of the general fund in that fiscal year beginning in 2016 (Sec. 5).

• Requires the Department of Treasury to prepare an annual estimate for economically distressed local tax units that have incurred a revenue loss of over 1 percent for that fiscal year (Sec. 5).

• Defines “economically distressed local tax unit” as including, but not limited to, counties, cities, libraries, community college districts, school districts, and other political subdivisions that meet at least one of the following conditions (Sec. 2):
• The local taxing unit has a successor statute or emergency manager appointed under certain provisions of the local government and school district accountability act;
• The local taxing unit has a projected deficit in excess of 5 percent of the general fund revenue for the current fiscal year;
• The local taxing unit has a bond rating that is less than investment grade according to a recognized bond rating agency.
• The local taxing unit has a smaller increase or greater decrease than the statewide change in 3 of the last 5 years; or
• The local taxing unit is determined to be economically distressed by the Michigan Department of Treasury.

• Requires the legislature, beginning in the 2016 fiscal year, to appropriate to the personal property tax reimbursement fund at least the amount of the estimate prepared by the Department of Treasury (Sec. 7).

• Requires the Department of Treasury, beginning in  the 2013 fiscal year,  to annually pay the amount of debt mill loss and voter approved qualified mill loss to each local taxing unit from the general fund (Sec. 8).
  

Full Bill Text