Payments in Lieu of Taxes
Senate Bill 1105
Sponsor: Sen. Shirley Johnson
Committee: Appropriations
Complete to September 15, 2004
A SUMMARY OF SB 1105, H-1
This bill would make a number of significant changes to the manner and the amount of payments made to local governmental units for Payments in Lieu of Taxes.
· No payments from State Education Tax revenue (SET) would be made to the School Aid Fund. Valuations of purchased lands would be set at 2003 levels and would be frozen for 3 years.
· New property acquisitions would be frozen at the valuation in place at the time of purchased, and no revaluation would occur until 2006.
· A minimum of $250 would be paid to any assessing district. This means that tax payments to local assessing units would not be made if the total tax payment is less than $250. The bill further states that no penalties can be assessed for late payments.
· The annual appropriation for PILT would be split 50:50 from the General Fund and State Restricted funds.
FISCAL IMPACT:
Payments to local governmental units would be reduced by $2.8 million. Of this amount, $2.4 is related to the SET payment. Approximately $400,000 will have been paid for penalties for late payments in 2004, but it should be noted that these payments are more than 6 months late. Savings related to the $250 minimum valuation has been estimated to be as much as $10,000.
The 50:50 split between the General Fund and State restricted funds would create a savings of more than $1.0 million in payments historically made from the Game and Fish Protection Fund, the Michigan Natural Resources Trust Fund and from the State Waterways Fund.
Fiscal Analyst: Kirk Lindquist
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.