2003 House Bill 4806 ↩

Senate Roll Call 368: Passed

To forgive the repayment of $390,000 in state school taxes which a downtown development authority (DDA) in Belleville in Wayne County improperly captured under a 1993 tax increment financing plan (TIFA). Tax increment financing allows the additional taxes expected to be generated in future years because increased of a development to repay money borrowed to finance the project. TIFAs allow DDAs to capture increased local property tax revenue, but since 1994 not school tax revenue, which they use to financing certain improvement projects. The Belleville DDA entered a “preferred developer agreement” with a developer to build a 280-unit site condominium subdivision and a 23-acre public park. It financed infrastructure improvements as an incentive to the developer. The rules on DDAs capturing school taxes were revised after the 1994 Proposal A initiative.