SB-0591, As Passed Senate, December 13, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 591

 

 

September 27, 2017, Introduced by Senators STAMAS, SHIRKEY and BRANDENBURG and referred to the Committee on Finance.

 

 

     A bill to amend 1895 PA 3, entitled

 

"The general law village act,"

 

by amending section 22 of chapter IX (MCL 69.22), as amended by

 

1998 PA 254.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

CHAPTER IX-FINANCE AND TAXATION.

 

     Sec. 22. (1) Should If any greater amount be is required in

 

any year for any lawful purpose than can otherwise be raised by the

 

council under this chapter, the amount may be raised by tax or

 

loan, or partly by tax and partly by loan. If approved by a

 

majority vote of the electors at an annual or special village

 

election, the council may levy a tax which, that, in any year,

 

shall must not exceed 2% of the assessed valuation of the real and

 

personal property within the village, as shown by the last

 

preceding assessment roll of the village.

 

     (2) The amount of indebtedness incurred by the issue of bonds

 

or otherwise, including existing indebtedness, shall must not

 

exceed 10% of the assessed valuation of the real and personal

 

property within the village subject to taxation as shown by the

 

last preceding assessment roll of the village. Bonds issued in

 

anticipation of the collection of special assessments even though

 

the bonds are a general obligation of the village, motor vehicle

 

highway fund bonds even though they are a general obligation of the

 

village, revenue bonds, or bonds issued or contract or assessment

 

obligations incurred to comply with an order of the department of

 

environmental quality or a court of competent jurisdiction, even

 

though they are a general obligation of the village and bonds

 

issued or contract or assessment obligations incurred for water

 

supply, sewage, drainage, or refuse disposal necessary to protect

 

the public health by abating pollution even though they are a

 

general obligation of the village, are not included in this

 

limitation. Money on hand in a sinking fund limited to the payment

 

of indebtedness may be treated as a reduction of the indebtedness

 

to that extent. In case of fire, flood, or other calamity requiring

 

an emergency fund for the relief of the inhabitants of the village,

 

or for the repairing or rebuilding of any of its municipal

 

buildings, works, bridges, or streets, the council may borrow money

 

due in not more than 3 years and in an amount not exceeding 1/4 of

 

1% of the taxable valuation of the village, notwithstanding that

the loan may increase the indebtedness of the village beyond the

 

limitations fixed by this section. If a village is authorized to

 

acquire or operate a public utility, the village may issue mortgage

 

bonds therefor beyond the general limit of bonded indebtedness

 

prescribed by this section. The mortgage bonds issued beyond the

 

limit of general indebtedness prescribed by this section shall must

 

not impose any liability upon the village, but shall must be

 

secured only upon the property and revenues of the public utility,

 

including its franchise, stating the terms upon which, in case of

 

foreclosure, the purchaser may operate the public utility; which

 

franchise shall must not extend for a period of more than 20 years

 

from the date of the sale of the utility and franchise on

 

foreclosure. All bonds issued, or contract or assessment

 

obligations incurred, before January 30, 1974 are validated.

 

     (3) In computing the net indebtedness for the purposes of

 

subsection (2), there may be added to the assessed value of real

 

and personal property in a village for a fiscal year an amount

 

equal to the assessed value equivalent of certain village revenues

 

as determined under this subsection. The assessed value equivalent

 

must be calculated by dividing the sum of the following amounts by

 

the village's millage rate for the fiscal year:

 

     (a) The amount paid or the estimated amount required to be

 

paid by the state to the village during the village's fiscal year

 

for the village's use under the Glenn Steil state revenue sharing

 

act of 1971, 1971 PA 140, MCL 141.901 to 141.921, and the amount of

 

any eligible reimbursement to the village under the local community

 

stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362,

except any amount distributed under section 17(4)(c) of the local

 

community stabilization authority act, 2014 PA 86, MCL 123.1357, in

 

excess of the village's qualified loss. The department of treasury

 

shall certify these amounts upon request. As used in this

 

subdivision, "qualified loss" means that term as defined in section

 

5 of the local community stabilization authority act, 2014 PA 86,

 

MCL 123.1345.

 

     (b) The amount levied by the village for its own use during

 

the village's fiscal year from the specific tax levied under 1974

 

PA 198, MCL 207.551 to 207.572.

 

     (c) The amount levied by the village for its own use during

 

the village's fiscal year from the specific tax levied under the

 

commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.