Bill > HB4209

This bill amends the Recodified Tax Increment Financing Act by modifying several definitions and provisions related to downtown development authorities and tax increment financing. The most significant changes include clarifying the definition of an "advance" (a transfer of funds with intent to repay), adjusting language around the "initial assessed value" of properties in development areas, and expanding provisions for what constitutes tax increment revenues. The bill makes technical edits such as replacing phrases like "pursuant to" with "under" and removing or adding specific qualifying language in various definitions. It also introduces new provisions for specific types of municipalities, such as a special consideration for a municipality with less than 1,000 people in a county with less than 100,000 people regarding the expiration of development plans. The bill provides more precise language around how tax increment revenues can be calculated and used, particularly for school district taxes and for specific types of development projects, including a "catalyst development project" involving substantial capital investment. These changes aim to provide more clarity and flexibility for municipalities in establishing and managing downtown development authorities and their associated financing mechanisms.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4209