January 18, 2006, Introduced by Senators CASSIS, BISHOP, ALLEN, GARCIA, PATTERSON, HAMMERSTROM, TOY and VAN WOERKOM and referred to the Committee on Appropriations.
A bill to amend 1971 PA 140, entitled
"Glenn Steil state revenue sharing act of 1971,"
by amending section 11 (MCL 141.911), as amended by 2004 PA 356.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For state fiscal years before the 1996-1997 state
fiscal year, the department of management and budget shall cause to
be paid during each August, November, February, and May, to
counties on a per capita basis the collections from the state
income tax as certified by the department of treasury for the
quarter periods ending the prior June 30, September 30, December
31, and March 31 that are available for distribution to and
retention by counties.
(2) For state fiscal years beginning after September 30, 1992
and ending before October 1, 1996, the collections from the state
income tax otherwise available for distribution to counties in
November for the quarter period ending the prior September 30 shall
be increased by $35,900,000.00 and the collections from the state
income tax otherwise available for distribution to counties in
August for the quarter period ending the prior June 30 shall be
decreased by $35,900,000.00.
(3) For the 1996-1997 and 1997-1998 state fiscal years, the
department of treasury shall cause to be paid to counties on a per
capita basis an amount equal to 24.5% of the difference between
21.3% of the sales tax collections at a rate of 4% in the 12-month
period ending June 30 of the state fiscal year in which the
payments are made and the total distribution for the state fiscal
year under section 12a. Subject to section 13d, for the 1998-1999
through 2005-2006 state fiscal years and for the period of October
1, 2006 through September 30, 2007, the department of treasury
shall cause to be paid to counties all of the following:
(a) Except as provided in subdivision (c) and subsection (6),
an amount equal to the amount the county was eligible to receive
under section 12a in the 1997-1998 state fiscal year.
(b) Except as provided in subdivision (c) and subsection (6),
an amount equal to 25.06% of 21.3% of the sales tax collections at
a rate of 4% in the 12-month period ending June 30 of the state
fiscal year in which the payments are made minus the amount
determined under subdivision (a) which shall be distributed on a
per capita basis. If the amount appropriated under this section to
counties is less than 25.06% of 21.3% of the sales tax rate of 4%,
any reduction made necessary by this appropriation in distributions
to counties shall first be applied to the distribution under this
subdivision.
(c) For the 2002-2003 state fiscal year only, each county
shall receive the lesser of 96.5%, or the percentage determined
under this subdivision, of the amount that the county would have
received if the total available for distribution under subdivisions
(a) and (b) were $211,549,002.00. The total amount available for
distribution to all counties under this subdivision shall not
exceed $204,144,787.00. For the 2002-2003 state fiscal year, the
percentage under this subdivision shall be determined by dividing
the sum of all payments under section 10 of article IX of the state
constitution of 1963 and $791,070,000.00 by $1,515,644,218.00. For
the 2003-2004 state fiscal year only, each county shall receive the
lesser of 92%, or the percentage determined under this subdivision,
of the amount distributed to the county under this subsection for
the 2002-2003 state fiscal year. For the 2003-2004 state fiscal
year, the percentage under this subdivision shall be determined by
dividing the sum of all payments under section 10 of article IX of
the state constitution of 1963 and $724,800,000.00 by
$1,407,850,000.00 and then subtracting 0.08.
(4) After September 30, 2007 and subject to the limitations of
subsections (3) and (6), 25.06% of 21.3% of the sales tax
collections at a rate of 4% shall be distributed to counties as
provided by law.
(5) The payments under subsection (3) shall be made from
revenues collected during the state fiscal year in which the
payments are made and shall be made during each October, December,
February, April, June, and August. Payments shall be based on
collections from the sales tax at a rate of 4% in the 2-month
period ending the prior August 31, October 31, December 31,
February 28, April 30, and June 30, and for the 1996-1997 and 1997-
1998 state fiscal years only the payments shall be reduced by 1/6
of the total distribution for the state fiscal year under section
12a. For state fiscal years after the 1995-1996 state fiscal year,
the collections from the sales tax otherwise available for
distribution to counties under subsection (3) in December shall be
increased by $17,000,000.00 and the collections from the sales tax
otherwise available for distribution to counties under subsection
(3) in April shall be decreased by $17,000,000.00.
(6) For state fiscal years beginning after September 30, 2004,
the
all of the following apply:
(a) The total amount distributed to each county under this
section shall equal the sum of the following:
(i) The amount by which the balance in its revenue sharing
reserve fund under section 44a of the general property tax act,
1893 PA 206, MCL 211.44a, for the county's most recent fiscal year
that ends prior to the January 1 of the state's fiscal year is less
than the amount calculated under section 44a(13) of the general
property tax act, 1893 PA 206, MCL 211.44a, for the county fiscal
year that begins in the state's fiscal year.
(ii) An amount equal to the amount of payments made by the
county to eligible authorities under section 12a(8) during the
2003-2004 state fiscal year, not to exceed the amount appropriated
by the legislature to that county for those payments.
(b) Payments under this subsection subdivision (a)(i) and (ii)
shall be adjusted separately as necessary to reflect partial county
fiscal years and prorated based on the total amount appropriated
for the purposes of subdivision (a)(i) and (ii) respectively, for
distribution to all counties.
(c) Upon the exhaustion of each county's revenue sharing
reserve fund, state revenue sharing within that county will be
fully and permanently restored under subdivision (a)(i) in an amount
equal to the total payments made to that county under this act in
the state fiscal year ending September 30, 2004, adjusted annually
through the date of restoration by the inflation rate, without
regard to an executive order issued after May 17, 2004, and
prorated based on the amount of the reserve fund used by the county
in the fiscal year during which payments are required to resume
under this subsection.
(d) As used in this subsection: ,
"inflation
(i) "Eligible authority" means an authority described in
section 12a(8).
(ii) "Inflation rate" means that term as defined in section 34d
of the general property tax act, 1893 PA 206, MCL 211.34d.
(7) The department of treasury may withhold all or a portion
of payments under this section to a county that has not timely
furnished the statement required under section 151(1) of the state
school aid act of 1979, 1979 PA 94, MCL 388.1751, or distributed an
industrial facilities tax as required under 1974 PA 198, MCL
207.551 to 207.572, or the specific tax as required under section
21b of the enterprise zone act, 1985 PA 224, MCL 125.2121b. Before
withholding all or a portion of the payments under this section to
a county, the department shall inform the county in writing of the
intent to withhold payments and offer an opportunity for an
informal conference on the matter.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 966
of the 93rd Legislature is enacted into law.