2013 House Bill 4327 / Public Act 232

Allow "tax increment finance" scheme reset to make up for property value declines

Introduced in the House

Feb. 26, 2013

Introduced by Rep. Jeff Farrington (R-30)

To allow “corridor improvement authorities” to “reset” their tax increment financing schemes (TIF) to reflect declining property assessments, which undermine their ability to divert property tax revenue from local governments and other taxing units to pay for the authority’s debt-funded spending projects and subsidies. A TIF "captures" the extra local property tax revenue that supposedly will result from these projects; this revenue is then used to repay money borrowed to fund that spending. The bill allows these authorities to change the base year from which future tax revenue increases ("increments") are measured.

Referred to the Committee on Commerce

Oct. 9, 2013

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Oct. 23, 2013

Passed in the House 86 to 21 (details)

Received in the Senate

Oct. 24, 2013

Referred to the Committee on Environment, Energy, and Technology

Oct. 29, 2013

Referred to the Committee on Economic Development

Dec. 4, 2013

Reported without amendment

With the recommendation that the bill pass.

Dec. 12, 2013

Passed in the Senate 33 to 5 (details)

To allow “corridor improvement authorities” to “reset” their tax increment financing schemes (TIF) to reflect declining property assessments, which undermine their ability to divert property tax revenue from local governments and other taxing units to pay for the authority’s debt-funded spending projects and subsidies. A TIF "captures" the extra local property tax revenue that supposedly will result from these projects; this revenue is then used to repay money borrowed to fund that spending. The bill allows these authorities to change the base year from which future tax revenue increases ("increments") are measured.

Signed by Gov. Rick Snyder

Dec. 21, 2013