Michigan Votes Forum

Introduced in the Senate on February 27, 2003, to allow a county to grant or loan any funds not derived from property taxes to a nonprofit corporation organized to subsidize economic development loans. Current law only allows the use of federal, state, or local grants for this purpose. The bill requires that grants or loans be awarded in a public county commission meeting according to an official process, and requires recipients to file annual reports on the extent to which their activities have met the stated public purpose. See also Senate Bill 240, and House Bills 4300 and 4324

The vote was 37 in favor, 0 opposed and 1 not voting

(Senate Roll Call 46 at Senate Journal 28)

Click here to view bill details.

Local municipalities can earmark certain property tax revenue for economic development (TIFA districts), and now counties can use "funds not derived from property taxes to a nonprofit corporation organized to subsidize economic development loans."

Wouldn't it be easier to say, "We'll take whatever we want of the money taken from the people and spend it on businesses that we think will succeed."

If government is so good at "picking winners" why are these guys wrong so often?

i hope no person calling themselves conservative actually voted for this. we need legislation that makes it MORE difficult to spend our tax money -- not easier! this allows our tax money to go into a private corporation where the light of FOIA and OMA doesn't shine! we should force any entity that takes our tax money to be subject to FOIA and OMA - or something similar. if they are "partnering" with the government, then partners open their books and let the other partners see what's actually going on with their investment.

Could you please explain what the acronym TIFA is? Thank you, e zerod, liberty1@speednetllc.com
(Repsonse to "So let me get this straight... " posted by bkelly)

Answer from MichiganVotes.org Editor:

Try searching MichiganVotes.org for "tax increment financing" in quotes - there are several brief descriptions contained in other bills.

The Citizen's Research Council defines it as follows:
"Tax increment finance districts allow local units of government to capture (from other locally-taxing governmental units) the increase in property tax levies for eligible properties above and beyond the year in which the authority was established. For example, a local unit that establishes a tax increment finance authority DDA, LDFA, or BRA) in 2001 may, in 2002 and every year following, retain property tax revenues above those collected (the increment) in 2001 (base year) that are otherwise due to other units of government, such as counties and school districts. In most cases, tax increment financing proceeds or bond indebtedness incurred therefrom may only be used for public improvements within the TIF district. The State Education Tax (6 mills) and debt obligations may not be captured by the local unit."
(From "Survey of Economic Development Programs in Michigan", at http://crcmich.org/PUBLICAT/2000s/2001/rpt334.pdf)

Jack McHugh
MichiganVotes.org