Introduced
by
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 of expanded economic activity generated by the public improvement projects funded by a DDA to repay money borrowed to finance the projects. TIFAs allow DDAs to capture increased local property tax revenue, but since 1994 they cannot capture school tax revenue. 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.
Referred to the Committee on Local Government and Urban Policy
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one which potentially adds additional exemptions from DDA obligation restrictions.
The substitute passed by voice vote
Amendment offered
by
To add additional exemptions from DDA obligation restrictions.
The amendment passed by voice vote
Passed in the House 105 to 0 (details)
Referred to the Committee on Local, Urban, and State Affairs
Reported without amendment
With the substitute (S-1).
Substitute offered
To replace the previous version of the bill with one which removes the provision added in the House which potentially adds additional exemptions from DDA obligation restrictions.
The substitute passed by voice vote
Passed in the Senate 35 to 0 (details)
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.
Amendment offered
by
To add an additional exemption from DDA obligation restrictions.
The amendment failed by voice vote
Passed in the House 107 to 0 (details)
To concur with the Senate-passed version of the bill.
