BROWNFIELD REDEVELOPMENT: FINANCING S.B. 482 (S-1): FLOOR ANALYSIS






Senate Bill 482 (Substitute S-1 as reported by the Committee of the Whole)
Sponsor: Senator Jason E. Allen
Committee: Economic Development, Small Business and Regulatory Reform

CONTENT
The bill would amend the Brownfield Redevelopment Financing Act to add the phrase "with or without interest" to a provision that allows a brownfield authority to reimburse advances made by a municipality to an authority or another person on behalf of the authority in anticipation of repayment by the authority, a land bank fast track authority, or any other person or entity for costs of eligible activities with any source or revenue available for use of the brownfield authority under the Act.


MCL 125.2663 Legislative Analyst: J.P. Finet

FISCAL IMPACT
The bill would reduce both School Aid Fund revenue for the State and local unit revenue by an unknown amount. The bill would increase the amount of tax that may be captured on affected property by increasing the costs that may be repaid by captured taxes. The impact of the change would depend upon the individual properties, the interest costs affected by the bill, and any secondary effects the bill might have on the number of brownfield projects undertaken. To the extent that any increased capture reduced local school district revenue, the bill also would increase School Aid Fund expenditures by an unknown amount because the School Aid Fund would need to offset any revenue loss in order to maintain per pupil funding guarantees.


Date Completed: 6-8-05 Fiscal Analyst: David Zin




floor\sb482 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb482/0506