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.