Public Act 659 of 2006

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• Introduced by Rep. Tom Meyer (R) on March 21, 2006, to revise the definition of "eligible obligations" in the law authorizing downtown development authorities (DDAs), to include certain obligations incurred by the DDA in the town of Bad Axe. This affects tax increment financing (TIF) used by the DDA, which allows it to capture increased local property tax revenue, but not school tax revenue, that results from their financing of certain improvement projects. Due to provisions of Proposal A starting in 1994, the use of school tax revenue in a TIF scheme is not permitted without an exemption.
  • Referred to the House Commerce Committee on March 21, 2006.
    • Reported in the House on May 30, 2006, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
  • Substitute offered in the House on June 7, 2006, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on June 7, 2006.
• Passed 99 to 1 in the House on June 8, 2006.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on June 13, 2006.
  • Referred to the Senate Commerce and Labor Committee on June 13, 2006.
    • Reported in the Senate on December 7, 2006, with the recommendation that the bill pass.
  • Amendment offered in the Senate on December 12, 2006, to also require Bad Axe to include the payment of interest on the unpaid school taxes in the repayment plan the bill requires. The amendment passed by voice vote in the Senate on December 12, 2006.
• Passed 38 to 0 in the Senate on December 13, 2006, to revise the definition of "eligible obligations" in the law authorizing downtown development authorities (DDAs), to include certain obligations incurred by the DDA in the town of Bad Axe. This affects tax increment financing (TIF) used by the DDA, which allows it to capture increased local property tax revenue, but not school tax revenue, that results from their financing of certain improvement projects. Due to provisions of Proposal A starting in 1994, the use of school tax revenue in a TIF scheme is not permitted without an exemption.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on December 13, 2006.
• Passed 105 to 0 in the House on December 14, 2006, to concur with the Senate-passed version of the bill.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on January 8, 2007.