2012 House Bill 6025 / Public Act 407

Create new layer of “metropolitan” governments

Introduced in the House

Nov. 8, 2012

Introduced by Rep. Jud Gilbert (R-81)

To create a state "metropolitan authority" to distribute to local governments state use tax revenue that would be earmarked to replace some of the revenue lost due to proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Referred to the Committee on Tax Policy

Dec. 5, 2012

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Dec. 6, 2012

Substitute offered

The substitute failed by voice vote

Passed in the House 57 to 52 (details)

Received in the Senate

Dec. 6, 2012

Referred to the Committee on Finance

Dec. 12, 2012

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

The substitute passed by voice vote

Passed in the Senate 21 to 16 (details)

To create a state "metropolitan authority" to distribute to local governments state use tax revenue that would be earmarked to replace some of the revenue lost due to proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Received in the House

Dec. 12, 2012

Dec. 13, 2012

Amendment offered by Rep. Vicki Barnett (D-37)

To revise the proposed allocation of use tax revenue to local governments to replace foregone "personsal property tax" revenue in a way that would result in locals getting more from this source than from other replacement revenue sources.

The amendment failed by voice vote

Amendment offered by Rep. Frank Foster (R-107)

To also make community colleges eligible for the money the proposed authority would distribute.

The amendment passed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To make the bill's provisions contingent on approval by voters of a measure earmarking a portion to the state use tax to replacing local government revenue foregone by cutting the property tax on business tools and equipment.

The amendment passed by voice vote

Amendment offered by Rep. Jud Gilbert (R-81)

To revise a detail of the proposed allocation of use tax revenue to local governments authorized by the bill.

The amendment passed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To reduce the amount of foregone revenue a local government would have to experience due to proposed personal property tax cuts before it would be eligible to receive replacement revenue from the state.

The amendment passed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To make the bill's provisions contingent on approval by voters of a measure earmarking a portion to the state use tax to replacing local government revenue foregone by cutting the property tax on business tools and equipment.

The amendment passed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To include foregone personal property tax revenue experienced by "tax increment financing" schemes in the amount the state would have to reimburse local governments under this and House Bill 6026.

The amendment passed by voice vote

Passed in the House 56 to 53 (details)

To create a state "metropolitan authority" to distribute to local governments state use tax revenue that would be earmarked to replace some of the revenue lost due to proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Received in the Senate

Dec. 14, 2012

Passed in the Senate 20 to 18 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 20, 2012