HOUSE BILL No. 5989 July 2, 1998, Introduced by Rep. Ciaramitaro and referred to the Committee on Appropriations. A bill to amend 1971 PA 140, entitled "State revenue sharing act of 1971," by amending sections 11, 12a, and 13 (MCL 141.911, 141.912a, and 141.913), section 11 as amended by 1996 PA 468 and section 12a as added and section 13 as amended by 1996 PA 342; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1) For state fiscal years before the 1996-1997 2 state fiscal year, the department of management and budget shall 3 cause to be paid during each August, November, February, and May, 4 to counties on a per capita basis the collections from the state 5 income tax as certified by the department of treasury for the 6 quarter periods ending the prior June 30, September 30, December 7 31, and March 31 that are available for distribution to and 8 retention by counties. 06611'98 RJA 2 1 (2) For state fiscal years beginning after September 30, 2 1992 and ending before October 1, 1996, the collections from the 3 state income tax otherwise available for distribution to counties 4 in November for the quarter period ending the prior September 30 5 shall be increased by $35,900,000.00 and the collections from the 6 state income tax otherwise available for distribution to counties 7 in August for the quarter period ending the prior June 30 shall 8 be decreased by $35,900,000.00. 9 (3) For THE 1996-1997 AND 1997-1998 state fiscal years, 10after the 1995-1996 state fiscal year and before the 1998-199911state fiscal year,the department of treasury shall cause to be 12 paid to counties on a per capita basis an amount equal to 24.5% 13 of the difference between 21.3% of the sales tax collections at a 14 rate of 4% in the 12-month period ending June 30 of the state 15 fiscal year in which the payments are made and the total distri- 16 bution for the state fiscal year under section 12a.For state17fiscal years after the 1997-1998 state fiscal year, the depart-18ment of treasury shall cause to be paid to each county the same19amount that was paid to that county under this section during the20immediately preceding state fiscal year from 24.5% of the differ-21ence between 21.3% of the sales tax collections at a rate of 4%22in the 12-month period ending June 30 of the state fiscal year in23which the payments are made and the total distribution for the24state fiscal year under section 12a. Each state fiscal year25after the 1997-1998 state fiscal year, the amount by which the26total collections available for distribution under this27subsection exceed the amount distributed under this subsection06611'98 3 1shall be deposited in the revenue sharing reserve fund created in2subsection (5).FOR STATE FISCAL YEARS AFTER THE 1997-1998 STATE 3 FISCAL YEAR, THE DEPARTMENT OF TREASURY SHALL CAUSE TO BE PAID TO 4 COUNTIES BOTH OF THE FOLLOWING: 5 (A) AN AMOUNT EQUAL TO THE AMOUNT THE COUNTY WAS ELIGIBLE TO 6 RECEIVE UNDER SECTION 12A IN THE 1997-1998 STATE FISCAL YEAR. 7 (B) AN AMOUNT EQUAL TO 25.06% OF 21.3% OF THE SALES TAX COL- 8 LECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 OF 9 THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE MADE MINUS THE 10 AMOUNT DETERMINED UNDER SUBDIVISION (A) WHICH SHALL BE DISTRIB- 11 UTED ON A PER CAPITA BASIS. 12 (4) The payments under subsection (3) shall be made from 13 revenues collected during the state fiscal year in which the pay- 14 ments are made and shall be made during each October, December, 15 February, April, June, and August. Payments shall be based on 16 collections from the sales tax at a rate of 4% in the 2-month 17 period ending the prior August 31, October 31, December 31, 18 February 28, April 30, and June 30,lessAND FOR THE 1996-1997 19 AND 1997-1998 STATE FISCAL YEARS ONLY THE PAYMENTS SHALL BE 20 REDUCED BY 1/6 of the total distribution for the state fiscal 21 year under section 12a. For state fiscal years after the 22 1995-1996 state fiscal year, the collections from the sales tax 23 otherwise available for distribution to counties under subsection 24 (3) in December shall be increased by $17,000,000.00 and the col- 25 lections from the sales tax otherwise available for distribution 26 to counties under subsection (3) in April shall be decreased by 27 $17,000,000.00. 06611'98 4 1(5) The revenue sharing reserve fund is created as a2separate fund in the general fund.3 Sec. 12a. (1) For state fiscal years before the 1998-1999 4 state fiscal year, the department of treasury shall calculate the 5 amount of payment to be made to a city, village, or township by 6 multiplying the amount of state equalized value of tax exempt 7 inventory property as certified by the department of treasury 8 under FORMER section 132 of the single business tax act,Act9No. 228 of the Public Acts of 1975, being section 208.132 of the10Michigan Compiled Laws1975 PA 228, times the property tax rate 11 for each taxing unit as certified each year to the department of 12 treasury for purposes of this act. 13 (2) For state fiscal years before the 1998-1999 state fiscal 14 year, the department of treasury shall pay to each county each 15 year, following the year the amount was calculated, an amount 16 equal to the product of the state equalized value of inventory as 17 certified by the department of treasury under FORMER section 132 18 ofAct No. 228 of the Public Acts of 1975THE SINGLE BUSINESS 19 TAX ACT, 1975 PA 228, times the county property tax rate for the 20 county as reported each year to the department of treasury. 21 (3) For state fiscal years after the 1995-1996 state fiscal 22 year IN WHICH PAYMENT IS MADE UNDER THIS SECTION, the payment 23 under this section shall be from the collections, exclusive of 24 the amount designated for assistance to townships, cities, and 25 villages under section 10 of article IX of the state constitution 26 of 1963, of the sales tax levied at a rate of 4%. 06611'98 5 1 (4) Payments made under this section, and the allocation and 2 appropriation of amounts necessary to make the payments under 3 this section, shall include interest which shall accrue on the 4 unpaid balance. Interest shall accrue at the rate determined 5 under section 13b. 6 (5) A payment required to be made under this section shall 7 not be delayed so as to cause interest to accrue pursuant to sub- 8 section (4) unless the delay in any payment is authorized by a 9 written directive issued and signed by the governor that conforms 10 to and is subject to section 13b(2) and (3). 11 (6) Amounts required to be paid pursuant to this section 12 that are subject to an unavoidable delay of a de minimis period 13 or that are withheld or set off pursuant to law in the settlement 14 or adjustment of an obligation or debt due to this state are not 15 subject to subsections (4) and (5). 16 (7)TheFOR STATE FISCAL YEARS BEFORE THE 1998-1999 STATE 17 FISCAL YEAR, THE treasurer of any city, village, township, or 18 county who collects money for an authority that levies property 19 taxes, shall pay an eligible authority its proportionate share of 20 the reimbursements under this section. The proportionate share 21 is the percentage that the property taxes collected by the 22 authority are to the property taxes of the assessing unit. The 23 property taxes of the authorities may be added to the millages 24 used to determine payments under this section. For an authority 25 to be eligible for compensation under this section, that author- 26 ity shall have an authorization to have taxes levied for its use 27 as provided by law. School districts, intermediate school 06611'98 6 1 districts, community college districts, vocational education 2 districts, and special education districts are not included under 3 this section. 4 (8) FOR STATE FISCAL YEARS AFTER THE 1997-1998 STATE FISCAL 5 YEAR, THE TREASURER OF ANY CITY, VILLAGE, TOWNSHIP, OR COUNTY WHO 6 COLLECTS MONEY FOR AN AUTHORITY THAT LEVIES PROPERTY TAXES SHALL 7 PAY AN ELIGIBLE AUTHORITY, FROM THE PAYMENTS RECEIVED UNDER THIS 8 ACT, THE AMOUNT RECEIVED BY THE ELIGIBLE AUTHORITY UNDER SUBSEC- 9 TION (7) FOR THE 1997-1998 STATE FISCAL YEAR. SCHOOL DISTRICTS, 10 INTERMEDIATE SCHOOL DISTRICTS, COMMUNITY COLLEGE DISTRICTS, VOCA- 11 TIONAL EDUCATION DISTRICTS, AND SPECIAL EDUCATION DISTRICTS ARE 12 NOT INCLUDED UNDER THIS SECTION. 13 (9)(8)The state treasurer may make a disbursement for a 14 payment under this section that has been delayed in advance of 15 the date the delayed payment is expected to be paid. 16 (10)(9)Payments under this section to cities and vil- 17 lages shall be made on or before October 31 and payments under 18 this section to counties and townships shall be made on or before 19 February 28. 20(10) For state fiscal years after the 1997-1998 state21fiscal year, the department of treasury shall cause to be paid to22each city, village, township, and county an amount equal to the23payment made under this section to that city, village, township,24or county under this section for the immediately preceding state25fiscal year.26 Sec. 13. (1) This subsection and subsection (2) apply to 27 distributions to cities, villages, and townships during the state 06611'98 7 1 fiscal years before the 1996-1997 state fiscal year of 2 collections from the state income tax and single business tax. 3 Except as otherwise provided in subsection (2), the department of 4 treasury shall cause to be paid to each city, village, and town- 5 ship its share, computed in accordance with the tax effort for- 6 mula, of the following revenues: 7 (a) During each August, November, February, and May, the 8 collections from the state income tax for the quarter periods 9 ending the prior June 30, September 30, December 31, and March 31 10 that are available for distribution to cities, villages, and 11 townships under the income tax act of 1967,Act No. 281 of the12Public Acts of 1967, being sections 206.1 to 206.532 of the13Michigan Compiled Laws1967 PA 281, MCL 206.1 TO 206.532. 14 (b) The amount of the collections from the single business 15 tax available for distribution to cities, villages, and townships 16 under FORMER section 136 of the single business tax act,Act17No. 228 of the Public Acts of 1975, being section 208.136 of the18Michigan Compiled Laws1975 PA 228. 19 (2) The amount of collections of the state income tax other- 20 wise available for distribution to cities, villages, and town- 21 ships in November, February, and May, computed in accordance with 22 the tax effort formula, shall be increased by $22,600,000.00. 23 The amount of collections otherwise available for distribution to 24 cities, villages, and townships in August, computed in accordance 25 with the tax effort formula, shall be decreased by 26 $67,800,000.00. 06611'98 8 1 (3) This subsection applies to distributions to cities, 2 villages, and townships for the 1996-1997 state fiscal year. The 3 department shall cause to be paid in accordance with the tax 4 effort formula an amount equal to 75.5% of the difference between 5 21.3% of the sales tax collections at a rate of 4% in the 6 12-month period ending June 30 of the state fiscal year in which 7 the payments are made and the total distribution for the state 8 fiscal year under section 12a. 9 (4) The department of treasury shall cause to be paid during 10 the 1997-1998 state fiscal year an amount equal to 75.5% of the 11 difference between 21.3% of the sales tax collections at a rate 12 of 4% in the 12-month period ending June 30 of the state fiscal 13 year in which the payments are made and the total distribution 14 for the state fiscal year under section 12a, both of the 15 following: 16 (a) To each city, village, and township, the amount of col- 17 lections distributed under subsection (3) to cities, villages, 18 and townships for the 1996-1997 state fiscal year or its pro rata 19 share of the collections if the collections are less than the 20 amount of collections distributed under subsection (3) for the 21 1996-1997 state fiscal year. A city's, village's, or township's 22 share of revenues under this subdivision shall be computed using 23 the tax effort formula. 24 (b) To each city, village, and township its share of the 25 collections to the extent the total collections available for 26 distribution under this subsection exceed the amount distributed 27 to cities, villages, and townships under subdivision (a) for the 06611'98 9 1 fiscal year. A city's, village's, or township's share of 2 revenues under this subdivision shall be computed on a per capita 3 basis. 4 (5) For state fiscal years after the 1997-1998 state fiscal 5 year, the department of treasury shall cause DISTRIBUTIONS DETER- 6 MINED UNDER SUBSECTIONS (6) TO (11) to be paid to each city, vil- 7 lage, and township from an amount equal to75.5%74.94% ofthe8difference between21.3% of the sales tax collections at a rate 9 of 4% in the 12-month period ending June 30 of the state fiscal 10 year in which the payments are made.and the total distribution11for the state fiscal year under section 12a, the amount distrib-12uted to the city, village, or township under this section during13the immediately preceding state fiscal year or its pro rata share14of the collections if the collections are less than the amount of15collections that were available for distribution in the immedi-16ately preceding state fiscal year. Each state fiscal year after17the 1997-1998 state fiscal year, the amount by which the total18collections available for distribution under this subsection19exceed the amount distributed under this subsection shall be20deposited in the revenue sharing reserve created in section2111(5).22 (6)The department of treasury shall pay to counties,23cities, townships, and villages by October 31, 1995, $2.00 per24parcel for the administrative costs associated with the process-25ing of homestead affidavits filed in those counties, cities,26townships, and villages before December 1, 1994.SUBJECT TO THE 06611'98 10 1 LIMITATIONS UNDER THIS SECTION, A TAXABLE VALUE PAYMENT SHALL BE 2 MADE TO EACH CITY, VILLAGE, AND TOWNSHIP DETERMINED AS FOLLOWS: 3 (A) DETERMINE THE PER CAPITA TAXABLE VALUE FOR EACH CITY, 4 VILLAGE, AND TOWNSHIP BY DIVIDING THE TAXABLE VALUE OF THAT CITY, 5 VILLAGE, OR TOWNSHIP BY THE POPULATION OF THAT CITY, VILLAGE, OR 6 TOWNSHIP. 7 (B) DETERMINE THE STATEWIDE PER CAPITA TAXABLE VALUE BY 8 DIVIDING THE TOTAL TAXABLE VALUE OF ALL CITIES, VILLAGES, AND 9 TOWNSHIPS BY THE TOTAL POPULATION OF ALL CITIES, VILLAGES, AND 10 TOWNSHIPS. 11 (C) DETERMINE THE PER CAPITA TAXABLE VALUE RATIO FOR EACH 12 CITY, VILLAGE, AND TOWNSHIP BY DIVIDING THE STATEWIDE PER CAPITA 13 TAXABLE VALUE BY THE PER CAPITA TAXABLE VALUE FOR THAT CITY, VIL- 14 LAGE, OR TOWNSHIP. 15 (D) DETERMINE THE ADJUSTED TAXABLE VALUE POPULATION FOR EACH 16 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE PER CAPITA TAXABLE 17 VALUE RATIO AS DETERMINED UNDER SUBDIVISION (C) FOR THAT CITY, 18 VILLAGE, OR TOWNSHIP BY THE POPULATION OF THAT CITY, VILLAGE, OR 19 TOWNSHIP. 20 (E) DETERMINE THE TOTAL STATEWIDE ADJUSTED TAXABLE VALUE 21 POPULATION WHICH IS THE SUM OF ALL ADJUSTED TAXABLE VALUE POPULA- 22 TION FOR ALL CITIES, VILLAGES, AND TOWNSHIPS. 23 (F) DETERMINE THE TAXABLE VALUE PAYMENT RATE BY DIVIDING 24 74.94% OF 21.3% OF THE SALES TAX COLLECTIONS AT A RATE OF 4% IN 25 THE 12-MONTH PERIOD ENDING JUNE 30 OF THE STATE FISCAL YEAR IN 26 WHICH THE PAYMENTS UNDER THIS SUBSECTION ARE MADE BY 3, AND 06611'98 11 1 DIVIDING THAT RESULT BY THE TOTAL STATEWIDE ADJUSTED TAXABLE 2 VALUE POPULATION AS DETERMINED UNDER SUBDIVISION (E). 3 (G) DETERMINE THE TAXABLE VALUE PAYMENT FOR EACH CITY, VIL- 4 LAGE, AND TOWNSHIP BY MULTIPLYING THE RESULT UNDER 5 SUBDIVISION (F) BY THE ADJUSTED TAXABLE VALUE POPULATION FOR THAT 6 CITY, VILLAGE, OR TOWNSHIP. 7 (7) SUBJECT TO THE LIMITATIONS UNDER THIS SECTION, A UNIT 8 TYPE POPULATION PAYMENT SHALL BE MADE TO EACH CITY, VILLAGE, AND 9 TOWNSHIP DETERMINED AS FOLLOWS: 10 (A) DETERMINE THE UNIT TYPE POPULATION WEIGHT FACTOR FOR 11 EACH CITY, VILLAGE, AND TOWNSHIP AS FOLLOWS: 12 (i) FOR A TOWNSHIP WITH A POPULATION OF 5,000 OR LESS, THE 13 UNIT TYPE POPULATION WEIGHT FACTOR IS 1.0. 14 (ii) FOR A TOWNSHIP WITH A POPULATION OF MORE THAN 5,000 BUT 15 LESS THAN 10,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 1.2. 16 (iii) FOR A TOWNSHIP WITH A POPULATION OF MORE THAN 10,000 17 BUT LESS THAN 20,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 18 1.44. 19 (iv) FOR A TOWNSHIP WITH A POPULATION OF MORE THAN 20,000 20 BUT LESS THAN 40,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 21 1.73. 22 (v) FOR A TOWNSHIP WITH A POPULATION OF MORE THAN 40,000 BUT 23 LESS THAN 80,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 24 2.07. 25 (vi) FOR A TOWNSHIP WITH A POPULATION OF MORE THAN 80,000, 26 THE UNIT TYPE POPULATION WEIGHT FACTOR IS 2.49. 06611'98 12 1 (vii) FOR A VILLAGE WITH A POPULATION OF 5,000 OR LESS, THE 2 UNIT TYPE POPULATION WEIGHT FACTOR IS 1.5. 3 (viii) FOR A VILLAGE WITH A POPULATION OF MORE THAN 5,000 4 BUT LESS THAN 10,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 5 1.8. 6 (ix) FOR A VILLAGE WITH A POPULATION OF MORE THAN 10,000, 7 THE UNIT TYPE POPULATION WEIGHT FACTOR IS 2.16. 8 (x) FOR A CITY WITH A POPULATION OF 5,000 OR LESS, THE UNIT 9 TYPE POPULATION WEIGHT FACTOR IS 2.5. 10 (xi) FOR A CITY WITH A POPULATION OF MORE THAN 5,000 BUT 11 LESS THAN 10,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.0. 12 (xii) FOR A CITY WITH A POPULATION OF MORE THAN 10,000 BUT 13 LESS THAN 20,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 3.6. 14 (xiii) FOR A CITY WITH A POPULATION OF MORE THAN 20,000 BUT 15 LESS THAN 40,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 4.2. 16 (xiv) FOR A CITY WITH A POPULATION OF MORE THAN 40,000 BUT 17 LESS THAN 80,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 18 5.18. 19 (xv) FOR A CITY WITH A POPULATION OF MORE THAN 80,000 BUT 20 LESS THAN 160,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 21 6.22. 22 (xvi) FOR A CITY WITH A POPULATION OF MORE THAN 160,000 BUT 23 LESS THAN 320,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 24 7.46. 25 (xvii) FOR A CITY WITH A POPULATION OF MORE THAN 320,000 BUT 26 LESS THAN 640,001, THE UNIT TYPE POPULATION WEIGHT FACTOR IS 27 8.96. 06611'98 13 1 (xviii) FOR A CITY WITH A POPULATION OF MORE THAN 640,000, 2 THE UNIT TYPE POPULATION WEIGHT FACTOR IS 10.75. 3 (B) DETERMINE THE ADJUSTED UNIT TYPE POPULATION FOR EACH 4 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE UNIT TYPE POPULA- 5 TION WEIGHT FACTOR FOR THAT CITY, VILLAGE, OR TOWNSHIP AS DETER- 6 MINED UNDER SUBDIVISION (A) BY THE POPULATION OF THE CITY, VIL- 7 LAGE, OR TOWNSHIP. 8 (C) DETERMINE THE TOTAL STATEWIDE ADJUSTED UNIT TYPE POPULA- 9 TION, WHICH IS THE SUM OF THE ADJUSTED UNIT TYPE POPULATION FOR 10 ALL CITIES, VILLAGES, AND TOWNSHIPS. 11 (D) DETERMINE THE UNIT TYPE POPULATION PAYMENT RATE BY 12 DIVIDING 74.94% OF 21.3% OF THE SALES TAX COLLECTIONS AT A RATE 13 OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 OF THE STATE FISCAL 14 YEAR IN WHICH THE PAYMENTS UNDER THIS SUBSECTION ARE MADE BY 3, 15 AND THEN DIVIDING THAT RESULT BY THE TOTAL STATEWIDE ADJUSTED 16 UNIT TYPE POPULATION AS DETERMINED UNDER SUBDIVISION (C). 17 (E) DETERMINE THE UNIT TYPE POPULATION PAYMENT FOR EACH 18 CITY, VILLAGE, AND TOWNSHIP BY MULTIPLYING THE RESULT UNDER SUB- 19 DIVISION (D) BY THE ADJUSTED UNIT TYPE POPULATION FOR THAT CITY, 20 VILLAGE, OR TOWNSHIP. 21 (8) SUBJECT TO THE LIMITATIONS UNDER THIS SECTION, A YIELD 22 EQUALIZATION PAYMENT SHALL BE MADE TO EACH CITY, VILLAGE, AND 23 TOWNSHIP WITH A LOCAL TAX EFFORT GREATER THAN 0.004 SUFFICIENT TO 24 PROVIDE THE GUARANTEED TAX BASE FOR A LOCAL TAX EFFORT NOT TO 25 EXCEED 0.02. THE PAYMENT SHALL BE DETERMINED AS FOLLOWS: 26 (A) THE GUARANTEED TAX BASE IS THE MAXIMUM COMBINED STATE 27 AND LOCAL PER CAPITA TAXABLE VALUE THAT CAN BE GUARANTEED IN A 06611'98 14 1 STATE FISCAL YEAR TO EACH CITY, VILLAGE, AND TOWNSHIP FOR A LOCAL 2 TAX EFFORT NOT TO EXCEED 0.02 IF AN AMOUNT EQUAL TO 74.94% OF 3 21.3% OF THE STATE SALES TAX AT A RATE OF 4% IS DISTRIBUTED TO 4 CITIES, VILLAGES, AND TOWNSHIPS WHOSE PER CAPITA TAXABLE VALUE IS 5 BELOW THE GUARANTEED TAX BASE. A CITY, VILLAGE, OR TOWNSHIP WITH 6 A LOCAL TAX EFFORT OF LESS THAN 0.004 SHALL NOT BE INCLUDED IN 7 THE CALCULATION UNDER THIS SUBDIVISION. 8 (B) THE FULL YIELD EQUALIZATION PAYMENT TO EACH CITY, VIL- 9 LAGE, AND TOWNSHIP IS THE PRODUCT OF THE AMOUNTS DETERMINED UNDER 10 SUBPARAGRAPHS (i) AND (ii): 11 (i) AN AMOUNT GREATER THAN ZERO THAT IS EQUAL TO THE DIFFER- 12 ENCE BETWEEN THE GUARANTEED TAX BASE DETERMINED IN 13 SUBDIVISION (A) AND THE PER CAPITA TAXABLE VALUE OF THE CITY, 14 VILLAGE, OR TOWNSHIP. 15 (ii) THE LOCAL TAX EFFORT OF THE CITY, VILLAGE, OR TOWNSHIP, 16 NOT TO EXCEED 0.02, MULTIPLIED BY THE POPULATION OF THAT CITY, 17 VILLAGE, OR TOWNSHIP. 18 (C) THE YIELD EQUALIZATION PAYMENT IS THE FULL YIELD EQUALI- 19 ZATION PAYMENT DIVIDED BY 3. 20 (9) FOR STATE FISCAL YEARS AFTER THE 1997-1998 STATE FISCAL 21 YEAR, DISTRIBUTIONS UNDER THIS SECTION SHALL BE DETERMINED AS 22 FOLLOWS: 23 (A) FOR THE 1998-1999 STATE FISCAL YEAR, THE PAYMENT UNDER 24 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 25 SUM OF THE FOLLOWING: 26 (i) NINETY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR 27 DISTRIBUTION UNDER THIS ACT FOR THE 1998-1999 STATE FISCAL YEAR 06611'98 15 1 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER 2 THIS ACT OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE 3 FISCAL YEAR. 4 (ii) TEN PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRIBU- 5 TION UNDER THIS ACT FOR THE 1998-1999 STATE FISCAL YEAR MULTI- 6 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS CALCU- 7 LATED UNDER SUBSECTIONS (6), (7), AND (8). 8 (B) FOR THE 1999-2000 STATE FISCAL YEAR, THE PAYMENT UNDER 9 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 10 SUM OF THE FOLLOWING: 11 (i) EIGHTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 12 BUTION UNDER THIS ACT FOR THE 1999-2000 STATE FISCAL YEAR MULTI- 13 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 14 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 15 YEAR. 16 (ii) TWENTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DIS- 17 TRIBUTION UNDER THIS ACT FOR THE 1999-2000 STATE FISCAL YEAR 18 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 19 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 20 (C) FOR THE 2000-2001 STATE FISCAL YEAR, THE PAYMENT UNDER 21 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 22 SUM OF THE FOLLOWING: 23 (i) SEVENTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DIS- 24 TRIBUTION UNDER THIS ACT FOR THE 2000-2001 STATE FISCAL YEAR 25 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER 26 THIS ACT OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE 27 FISCAL YEAR. 06611'98 16 1 (ii) THIRTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR 2 DISTRIBUTION UNDER THIS ACT FOR THE 2000-2001 STATE FISCAL YEAR 3 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 4 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 5 (D) FOR THE 2001-2002 STATE FISCAL YEAR, THE PAYMENT UNDER 6 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 7 SUM OF THE FOLLOWING: 8 (i) SIXTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 9 BUTION UNDER THIS ACT FOR THE 2001-2002 STATE FISCAL YEAR MULTI- 10 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 11 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 12 YEAR. 13 (ii) FORTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 14 BUTION UNDER THIS ACT FOR THE 2001-2002 STATE FISCAL YEAR MULTI- 15 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS CALCU- 16 LATED UNDER SUBSECTIONS (6), (7), AND (8). 17 (E) FOR THE 2002-2003 STATE FISCAL YEAR, THE PAYMENT UNDER 18 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 19 SUM OF THE FOLLOWING: 20 (i) FIFTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 21 BUTION UNDER THIS ACT FOR THE 2002-2003 STATE FISCAL YEAR MULTI- 22 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 23 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 24 YEAR. 25 (ii) FIFTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 26 BUTION UNDER THIS ACT FOR THE 2002-2003 STATE FISCAL YEAR 06611'98 17 1 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 2 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 3 (F) FOR THE 2003-2004 STATE FISCAL YEAR, THE PAYMENT UNDER 4 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 5 SUM OF THE FOLLOWING: 6 (i) FORTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 7 BUTION UNDER THIS ACT FOR THE 2003-2004 STATE FISCAL YEAR MULTI- 8 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 9 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 10 YEAR. 11 (ii) SIXTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 12 BUTION UNDER THIS ACT FOR THE 2003-2004 STATE FISCAL YEAR MULTI- 13 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS CALCU- 14 LATED UNDER SUBSECTIONS (6), (7), AND (8). 15 (G) FOR THE 2004-2005 STATE FISCAL YEAR, THE PAYMENT UNDER 16 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 17 SUM OF THE FOLLOWING: 18 (i) THIRTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 19 BUTION UNDER THIS ACT FOR THE 2004-2005 STATE FISCAL YEAR MULTI- 20 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 21 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 22 YEAR. 23 (ii) SEVENTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DIS- 24 TRIBUTION UNDER THIS ACT FOR THE 2004-2005 STATE FISCAL YEAR 25 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 26 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 06611'98 18 1 (H) FOR THE 2005-2006 STATE FISCAL YEAR, THE PAYMENT UNDER 2 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 3 SUM OF THE FOLLOWING: 4 (i) TWENTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRI- 5 BUTION UNDER THIS ACT FOR THE 2005-2006 STATE FISCAL YEAR MULTI- 6 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 7 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 8 YEAR. 9 (ii) EIGHTY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DIS- 10 TRIBUTION UNDER THIS ACT FOR THE 2005-2006 STATE FISCAL YEAR 11 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 12 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 13 (I) FOR THE 2006-2007 STATE FISCAL YEAR, THE PAYMENT UNDER 14 THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE THE 15 SUM OF THE FOLLOWING: 16 (i) TEN PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DISTRIBU- 17 TION UNDER THIS ACT FOR THE 2006-2007 STATE FISCAL YEAR MULTI- 18 PLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTIONS UNDER THIS ACT 19 OF THE CITY, VILLAGE, OR TOWNSHIP IN THE 1997-1998 STATE FISCAL 20 YEAR. 21 (ii) NINETY PERCENT OF THE TOTAL AMOUNT AVAILABLE FOR DIS- 22 TRIBUTION UNDER THIS ACT FOR THE 2006-2007 STATE FISCAL YEAR 23 MULTIPLIED BY THE PERCENTAGE SHARE OF THE DISTRIBUTION AMOUNTS 24 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 25 (J) FOR THE 2007-2008 STATE FISCAL YEAR, 100% OF THE PAYMENT 26 UNDER THIS SECTION FOR EACH CITY, VILLAGE, AND TOWNSHIP SHALL BE 27 CALCULATED UNDER SUBSECTIONS (6), (7), AND (8). 06611'98 19 1 (10) THE TOTAL PAYMENT TO ANY CITY, VILLAGE, OR TOWNSHIP 2 UNDER THIS ACT AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTI- 3 TUTION OF 1963 SHALL NOT INCREASE BY MORE THAN 8% OVER THE AMOUNT 4 OF THE PAYMENT UNDER THIS ACT AND SECTION 10 OF ARTICLE IX OF THE 5 STATE CONSTITUTION OF 1963 IN THE IMMEDIATELY PRECEDING STATE 6 FISCAL YEAR. FROM THE AMOUNT NOT DISTRIBUTED BECAUSE OF THE LIM- 7 ITATION IMPOSED BY THIS SUBSECTION, THE DEPARTMENT SHALL DISTRIB- 8 UTE AN AMOUNT TO CERTAIN CITIES, VILLAGES, AND TOWNSHIPS SUCH 9 THAT THE PERCENTAGE INCREASE IN THE TOTAL PAYMENT UNDER THIS ACT 10 AND SECTION 10 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 11 FROM THE IMMEDIATELY PRECEDING STATE FISCAL YEAR TO EACH OF THOSE 12 CITIES, VILLAGES, AND TOWNSHIPS IS EQUAL TO, BUT DOES NOT EXCEED, 13 THE PERCENTAGE INCREASE FROM THE IMMEDIATELY PRECEDING STATE 14 FISCAL YEAR OF ANY CITY, VILLAGE, OR TOWNSHIP THAT DOES NOT 15 RECEIVE A DISTRIBUTION UNDER THIS SUBSECTION. 16 (11) THE PERCENTAGE ALLOCATIONS TO DISTRIBUTIONS UNDER SUB- 17 SECTIONS (6) TO (8) PURSUANT TO SUBSECTION (9) SHALL BE CALCU- 18 LATED AS IF, IN ANY STATE FISCAL YEAR, THE AMOUNT APPROPRIATED 19 FOR DISTRIBUTION IS 74.94% OF 21.3% OF THE SALES TAX AT A RATE OF 20 4%. IF THE AMOUNT APPROPRIATED IS LESS THAN 74.94% OF 21.3% OF 21 THE SALES TAX AT A RATE OF 4%, THE REDUCTION SHALL FIRST BE 22 APPLIED TO THE DISTRIBUTION UNDER SUBSECTIONS (6) TO (8) AND ANY 23 REMAINING AMOUNT SHALL BE APPLIED TO THE OTHER DISTRIBUTIONS 24 UNDER THIS SECTION. 25 (12)(7)The payments under subsections (3), (4), and (5) 26 shall be made during each October, December, February, April, 27 June, and August. Payments under subsections (3), (4), and (5) 06611'98 20 1 shall be based on collections from the sales tax at the rate of 2 4% in the 2-month period ending the prior August 31, October 31, 3 December 31, February 28, April 30, and June 30,lessAND FOR 4 THE 1996-1997 AND 1997-98 STATE FISCAL YEARS ONLY, THE PAYMENTS 5 SHALL BE REDUCED BY 1/6 of the total distribution for the state 6 fiscal year under section 12a. 7 (13)(8)Payments under this section shall be made from 8 revenues collected during the state fiscal year in which the pay- 9 ments are made. 10 (14)(9)Distributions provided for by this act are 11 subject to an annual appropriation by the legislature. 12 Enacting section 1. Sections 11a, 14, and 15 of the state 13 revenue sharing act of 1971, 1971 PA 140, MCL 141.911a, 141.914, 14 and 141.915, are repealed. 06611'98 Final page. RJA