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2013 House Bill 4327: Allow "tax increment finance" scheme reset to make up for property value declines

Public Act 232 of 2013

  1. Introduced by Rep. Jeff Farrington (R) on February 26, 2013, 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 House Commerce Committee on February 26, 2013.
      • Reported in the House on October 9, 2013, without amendment and with the recommendation that the bill pass.
  2. Passed 86 to 21 in the House on October 23, 2013.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on October 24, 2013.
    • Referred to the Senate Energy and Technology Committee on October 24, 2013.
    • Referred to the Senate Economic Development Committee on October 29, 2013.
      • Reported in the Senate on December 4, 2013, with the recommendation that the bill pass.
  4. Passed 33 to 5 in the Senate on December 12, 2013, 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.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on December 21, 2013.

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