SB 553 amends Michigan's tax increment financing (TIF) law to allow municipalities to fund water resource improvements using TIF revenues. It specifically adds projects like lake management, shoreline protection, stormwater systems, invasive species control, and public access to inland lakes or rivers to the list of eligible TIF activities. Municipalities can now create authorities within designated "water resource improvement districts" (areas near lakes, rivers, or harbors) to finance these projects through captured tax revenues. The bill clarifies definitions for terms like "water resource improvement" and "water resource improvement district" to ensure TIF funds are properly applied to environmental and public access enhancements.
This bill modifies Michigan's sales tax rules for online marketplace facilitators, requiring them to collect and remit sales tax on all taxable sales made through their platforms regardless of whether the individual sellers have a physical presence in the state. It establishes that marketplace facilitators are responsible for auditing only their own facilitated sales unless sellers fail to provide necessary information, while also protecting facilitators from liability when sellers provide incorrect data or pay the tax directly. The legislation creates a special provision for delivery network companies, allowing them to deduct or exclude from their tax liability the sales tax they paid to marketplace sellers for qualified delivery services, such as those performed by couriers using personal vehicles or walking for distances under 75 miles.
SB 581 updates definitions in Michigan's downtown development law to clarify how tax increment financing (TIF) programs operate. It specifically revises the definition of "downtown district" to allow multiple geographic areas within a business district under certain conditions (like inter-municipal agreements), defines "captured assessed value" for TIF calculations, and limits "catalyst development projects" to one per authority (requiring $300 million+ investment in cities over 600,000 population). These changes directly affect municipalities operating downtown development authorities that use TIF to fund redevelopment. The bill focuses on precise terminology to ensure consistent application of existing TIF rules, without creating new funding mechanisms.
SB 695 allows regional transit authorities in Michigan to charge an extra $1.20 per $1,000 of a vehicle’s value (on top of standard registration fees) for transit funding, but only if approved by voters in a November election. It requires ballot measures to specify how funds will be used and limits spending to transit projects. The tax applies to regular vehicle registrations in transit regions, excluding company test vehicles (e.g., manufacturer-owned vehicles used for testing). It takes effect January 1, 2027, pending approval of related legislation. This change directly affects vehicle owners in participating transit regions through their registration costs.
SB 692 modifies how regional transit authorities in Michigan can raise funds for public transportation. It requires voter approval for local transit taxes through a November election, with ballot measures clearly stating the tax rate, duration, purpose, and whether it's a renewal or new tax. The bill mandates that at least 85% of funds collected from local taxes or vehicle registration fees must be spent on transit services within the community where the money was raised. It also adds new reporting requirements for transit authorities starting January 1, 2027, including annual cost/revenue reports and asset management plans.
HB 5032 amends Michigan's Revised School Code to prohibit using state school aid funds for special elections. It directly affects school districts and local governments that receive state school aid, preventing them from allocating those funds toward special election costs. The bill specifically amends Section 1361 of the School Code (MCL 380.1361) to add this restriction. This change clarifies that school aid funds must be used solely for educational purposes, not for election-related expenses.
HB 5517 creates a $0.005 per returnable beverage container tax credit for distributors who charge a deposit on containers, effective for tax years beginning January 1, 2026. The credit adjusts annually based on the U.S. Consumer Price Index starting in 2027. Distributors must attach a specific report (per 1976 IL 1) with their tax return to claim the credit, and any excess credit is refunded. This directly affects beverage distributors handling returnable containers in Michigan.
HB 4346 redirects revenue from Michigan's lawful internet gaming programs to the Michigan Agriculture Equine Industry Development Fund and removes the existing spending limit on these funds. This bill directly affects the state's horse and agricultural industries by providing them with potentially increased funding for development initiatives. The key provision changes a 2019 law (MCL 432.315) to allow all allocated gaming revenue - previously subject to a cap - to flow into the equine fund without restriction. The bill is currently pending in the House Rules Committee after being reported with a substitute amendment.
HB 4080 reinstates a program deferring property tax special assessments for eligible Michigan homestead owners. It applies to assessments due before October 1, 2020, or on/before October 1, 2022, for primary residences owned by qualifying individuals (including those who are totally and permanently disabled). The bill allows owners to defer payments until death, sale, or transfer of the property, with up to four annual partial payments (minimum $500 or 5% of the balance) and interest accruing on unpaid amounts. Full payment becomes due upon sale, transfer, or death, and the bill requires the state to notify owners of these terms. This amendment to Michigan’s 1976 property tax law (MCL 211.761-762) is contingent on HB 4079 passing.
HB 4079 adjusts the income limit for homeowners aged 65 or older, or those totally and permanently disabled, who qualify for a property tax deferment on special assessments. Currently set at $34,900 as of October 2022, the bill replaces this fixed amount with an annual adjustment based on the Detroit-area Consumer Price Index (CPI), meaning the limit will rise or fall each year with local inflation. The state treasurer will calculate the new limit annually using the prior year's CPI data, rounding to the nearest dollar. This change directly affects eligible homeowners seeking to defer special assessments on their primary residences without immediate payment.
