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2012 House Bill 5463: Subsidize new Red Wings Stadium (as amended; originally something else)

Public Act 396 of 2012

  1. Introduced by Rep. John Walsh (R) on March 8, 2012, to establish that Downtown Development Authorities are exempt from all property and state income taxes. Also, that the term of a DDA board member who is an elected or appointed public official may end when the person’s position as a public official ends. A later Senate substituted transformed this into an authorization for taxpayer subsidies for a particular developer's sports stadium project.
    • Referred to the House Tax Policy Committee on March 8, 2012.
      • Reported in the House on May 16, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on May 23, 2012. The substitute passed by voice vote in the House on May 23, 2012.
  2. Passed 106 to 2 in the House on May 24, 2012, to establish that Downtown Development Authorities are exempt from all property and state income taxes. Also, that the term of a DDA board member who is an elected or appointed public official may end when the person’s position as a public official ends.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 29, 2012.
    • Referred to the Senate Finance Committee on May 29, 2012.
      • Reported in the Senate on June 14, 2012, with the recommendation that the bill pass.
    • Referred to the Senate Government Operations Committee on September 27, 2012.
      • Reported in the Senate on December 5, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 5, 2012, to adopt a version of the bill that would allow the Detroit DDA to subsidize a new Detroit Red Wings stadium for developer Mike Ilitch, who owns the Red Wings. The substitute passed by voice vote in the Senate on December 5, 2012.
    • Amendment offered by Sen. Gretchen Whitmer (D) on December 5, 2012, to tie-bar the bill to Senate Bill 1015, meaning this bill cannot become law unless that one does also. SB 1015 would give all Michigan high school graduates up to five years of grants covering tuition in a state college or university, funded by repealing $1.8 billion worth of current state tax deductions, exemptions and credits (including many existing "corporate welfare" subsidies). The amendment failed 12 to 26 in the Senate on December 5, 2012.
      Who Voted "Yes" and Who Voted "No"

  4. Passed 27 to 11 in the Senate on December 5, 2012, to authorize using the Detroit "Downtown Development Authority" as the vehicle to deliver taxpayer subsidies for a new sports stadium complex owned by Detroit Red Wings owner Mike Ilitch. The DDA would pledge property tax revenues it "captures" from schools and other local governments to repay debt in incurs to provide the subsidies. The bill would also exempt DDAs from property and other taxes, and revise details of public officials' appointments to DDA boards.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 5, 2012.
  6. Passed 58 to 49 in the House on December 13, 2012, to authorize using the Detroit "Downtown Development Authority" as the vehicle to deliver taxpayer subsidies for a new sports stadium complex owned by Detroit Red Wings owner Mike Ilitch. The DDA would pledge property tax revenues it "captures" from schools and other local governments to repay debt in incurs to provide the subsidies. The bill would also exempt DDAs from property and other taxes, and revise details of public officials' appointments to DDA boards.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on December 19, 2012.

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