HOUSE BILL No. 5482

 

December 1, 2005, Introduced by Reps. Gosselin, Drolet, Steil, Hoogendyk and Palmer 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  subsection (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 total amount distributed to each county under this section

 

shall equal 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. Payments under this

 

subsection shall be adjusted as necessary to reflect partial county

 

fiscal years and prorated based on the total amount appropriated

 

for distribution to all counties. Upon the exhaustion of each

 

county's revenue sharing reserve fund, state revenue sharing within

 

that county will be fully and permanently restored 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. As used in this subsection, "inflation rate"

 

means that term as defined in section 34d of the general property

 

tax act, 1893 PA 206, MCL 211.34d.

 

     (6)  (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.