SENATE BILL NO. 324


   February 18, 1999, Introduced by Senators JAYE and SHUGARS 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 sections 11 and 13 (MCL 141.911 and 141.913), as

   amended by 1998 PA 532.

               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.

 9         (2) For state fiscal years beginning after September 30,

10    1992 and ending before October 1, 1996, the collections from the


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                                   2

 1    state income tax otherwise available for distribution to counties

 2    in November for the quarter period ending the prior September 30

 3    shall be increased by $35,900,000.00 and the collections from the

 4    state income tax otherwise available for distribution to counties

 5    in August for the quarter period ending the prior June 30 shall

 6    be decreased by $35,900,000.00.

 7         (3) For the 1996-1997 and 1997-1998 state fiscal years, the

 8    department of treasury shall cause to be paid to counties on a

 9    per capita basis an amount equal to 24.5% of the difference

10    between 21.3% of the sales tax collections at a rate of 4% in the

11    12-month period ending June 30 of the state fiscal year in which

12    the payments are made and the total distribution for the state

13    fiscal year under section 12a.  Subject to section 13d, for the

14    1998-1999 through 2005-2006 state fiscal years and for the period

15    of October 1, 2006 through June 30, 2007, the department of trea-

16    sury shall cause to be paid to counties both of the following:

17         (a) An amount equal to the amount the county was eligible to

18    receive under section 12a in the 1997-1998 state fiscal year.

19         (b) An amount equal to 25.06% of 21.3% of the sales tax col-

20    lections at a rate of 4% in the 12-month period ending June 30 of

21    the state fiscal year in which the payments are made minus the

22    amount determined under subdivision (a) which shall be distrib-

23    uted on a per capita basis.  If the amount appropriated under

24    this section to counties is less than 25.06% of 21.3% of the

25    sales tax rate of 4%, any reduction made necessary by this appro-

26    priation in distributions to counties shall first be applied to

27    the distribution under this subdivision.



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 1          (4) After June 30, 2007, 25.06% of 21.3% of the sales
             tax

 2     collections at a rate of 4% shall be distributed to counties
                       as

 3     provided by law. 

 4         (4)  (5)  The payments under subsection (3)
             shall be made

 5    from revenues collected during the state fiscal year in which the

 6    payments are made and shall be made during each October,

 7    December, February, April, June, and August.  Payments shall be

 8    based on collections from the sales tax at a rate of 4% in the

 9    2-month period ending the prior August 31, October 31, December

10    31, February 28, April 30, and June 30, and for the 1996-1997 and

11    1997-1998 state fiscal years only the payments shall be reduced

12    by 1/6 of the total distribution for the state fiscal year under

13    section 12a.  For state fiscal years after the 1995-1996 state

14    fiscal year, the collections from the sales tax otherwise avail-

15    able for distribution to counties under subsection (3) in

16    December shall be increased by $17,000,000.00 and the collections

17    from the sales tax otherwise available for distribution to coun-

18    ties under subsection (3) in April shall be decreased by

19    $17,000,000.00.

20         Sec. 13.  (1) This subsection and subsection (2) apply to

21    distributions to cities, villages, and townships during the state

22    fiscal years before the 1996-1997 state fiscal year of collec-

23    tions from the state income tax and single business tax.  Except

24    as otherwise provided in subsection (2), the department of trea-

25    sury shall cause to be paid to each city, village, and township

26    its share, computed in accordance with the tax effort formula, of

27    the following revenues:



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 1         (a) During each August, November, February, and May, the

 2    collections from the state income tax for the quarter periods

 3    ending the prior June 30, September 30, December 31, and March 31

 4    that are available for distribution to cities, villages, and

 5    townships under the income tax act of 1967, 1967 PA 281, MCL

 6    206.1 to 206.532.

 7         (b) The amount of the collections from the single business

 8    tax available for distribution to cities, villages, and townships

 9    under former section 136 of the single business tax act, 1975 PA

10    228.

11         (2) The amount of collections of the state income tax other-

12    wise available for distribution to cities, villages, and town-

13    ships in November, February, and May, computed in accordance with

14    the tax effort formula, shall be increased by $22,600,000.00.

15    The amount of collections otherwise available for distribution to

16    cities, villages, and townships in August, computed in accordance

17    with the tax effort formula, shall be decreased by

18    $67,800,000.00.

19         (3) This subsection applies to distributions to cities, vil-

20    lages, and townships for the 1996-1997 state fiscal year.  The

21    department shall cause to be paid in accordance with the tax

22    effort formula an amount equal to 75.5% of the difference between

23    21.3% of the sales tax collections at a rate of 4% in the

24    12-month period ending June 30 of the state fiscal year in which

25    the payments are made and the total distribution for the state

26    fiscal year under section 12a.





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 1         (4) The department of treasury shall cause to be paid during

 2    the 1997-1998 state fiscal year an amount equal to 75.5% of the

 3    difference between 21.3% of the sales tax collections at a rate

 4    of 4% in the 12-month period ending June 30 of the state fiscal

 5    year in which the payments are made and the total distribution

 6    for the state fiscal year under section 12a, both of the

 7    following:

 8         (a) To each city, village, and township, the amount of col-

 9    lections distributed under subsection (3) to cities, villages,

10    and townships for the 1996-1997 state fiscal year or its pro rata

11    share of the collections if the collections are less than the

12    amount of collections distributed under subsection (3) for the

13    1996-1997 state fiscal year.  A city's, village's, or township's

14    share of revenues under this subdivision shall be computed using

15    the tax effort formula.

16         (b) To each city, village, and township its share of the

17    collections to the extent the total collections available for

18    distribution under this subsection exceed the amount distributed

19    to cities, villages, and townships under subdivision (a) for the

20    fiscal year.  A city's, village's, or township's share of reve-

21    nues under this subdivision shall be computed on a per capita

22    basis.

23         (5) Subject to section 13d, for the 1998-1999 through

24    2005-2006 state fiscal years and for the period of October 1,

25    2006 through June 30, 2007, the department of treasury shall

26    cause  distributions determined under subsections (6) to
             (13)  to

27    be paid ON A PER CAPITA BASIS to each city, village, and township



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                                   6

 1     from  an amount equal to 74.94% of 21.3% of the
             sales tax

 2    collections at a rate of 4% in the 12-month period ending June 30

 3    of the state fiscal year in which the payments are made. 
             After

 4     June 30, 2007, 74.94% of 21.3% of sales tax collections at a
                       rate

 5     of 4% shall be distributed to cities, villages, and
                       townships as

 6     provided by law.

 7          (6) Subject to section 13d, for the 1998-1999 through

 8     2005-2006 state fiscal years and for the period of October
                       1,

 9     2006 through June 30, 2007 and except as provided in
                       subsection

10     (15), the department of treasury shall cause to be paid

11     $333,900,000.00 to a city with a population of 750,000 or
                       more as

12     the total combined distribution under this act and section
                       10 of

13     article IX of the state constitution of 1963 as annualized
                       for

14     any period of less than 12 months to that city.

15          (7) Distributions under subsections (8) to (13) to
                       cities,

16     villages, and townships with populations of less than
                       750,000

17     shall be made from the amount available for distribution
                       under

18     this section that remains after the distribution under
                       subsection

19     (6) is made.

20          (8) Subject to section 13d, for the 1998-1999 through

21     2005-2006 state fiscal years and for the period of October
                       1,

22     2006 through June 30, 2007, for cities, villages, and
                       townships

23     with populations of less than 750,000, subject to the
                       limitations

24     under this section, a taxable value payment shall be made to
                       each

25     city, village, and township determined as follows:

26          (a) Determine the per capita taxable value for each
                       city,

27     village, and township by dividing the taxable value of that
                       city,



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                                   7

 1    village, or township by the population of that city,
             village, or

 2     township.

 3          (b) Determine the statewide per capita taxable value by

 4     dividing the total taxable value of all cities, villages,
                       and

 5     townships by the total population of all cities, villages,
                       and

 6     townships.

 7          (c) Determine the per capita taxable value ratio for
                       each

 8     city, village, and township by dividing the statewide per
                       capita

 9     taxable value by the per capita taxable value for that city,
                       vil-

10     lage, or township.

11          (d) Determine the adjusted taxable value population for
                       each

12     city, village, and township by multiplying the per capita
                       taxable

13     value ratio as determined under subdivision (c) for that
                       city,

14     village, or township by the population of that city,
                       village, or

15     township.

16          (e) Determine the total statewide adjusted taxable
                       value

17     population which is the sum of all adjusted taxable value
                       popula-

18     tion for all cities, villages, and townships.

19          (f) Determine the taxable value payment rate by
                       dividing

20     74.94% of 21.3% of the sales tax collections at a rate of 4%
                       in

21     the 12-month period ending June 30 of the state fiscal year
                       in

22     which the payments under this subsection are made by 3, and

23     dividing that result by the total statewide adjusted taxable

24     value population as determined under subdivision (e).

25          (g) Determine the taxable value payment for each city,
                       vil-

26     lage, and township by multiplying the result under





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                                   8

 1    subdivision (f) by the adjusted taxable value population for
             that

 2     city, village, or township.

 3          (9) Subject to section 13d, for the 1998-1999 through

 4     2005-2006 state fiscal years and for the period of October
                       1,

 5     2006 through June 30, 2007, subject to the limitations under
                       this

 6     section and except as provided in subsection (14), a unit
                       type

 7     population payment shall be made to each city, village, and
                       town-

 8     ship with a population of less than 750,000 determined as

 9     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.





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 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

16     4.32.

17          (xiv) For a city with a population of more than
                       40,000 but

18     less than 80,001, the unit type population weight factor is

19     5.18.

20          (xv) For a city with a population of more than
                       80,000 but

21     less than 160,001, the unit type population weight factor is

22     6.22.

23          (xvi) For a city with a population of more than
                       160,000 but

24     less than 320,001, the unit type population weight factor is

25     7.46.







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                                  10

 1         (xvii) For a city with a population of more than
             320,000 but

 2     less than 640,001, the unit type population weight factor is

 3     8.96.

 4          (xviii) For a city with a population of more
                       than 640,000,

 5     the unit type population weight factor is 10.75.

 6          (b) Determine the adjusted unit type population for
                       each

 7     city, village, and township by multiplying the unit type
                       popula-

 8     tion weight factor for that city, village, or township as
                       deter-

 9     mined under subdivision (a) by the population of the city,
                       vil-

10     lage, or township.

11          (c) Determine the total statewide adjusted unit type
                       popula-

12     tion, which is the sum of the adjusted unit type population
                       for

13     all cities, villages, and townships.

14          (d) Determine the unit type population payment rate by

15     dividing 74.94% of 21.3% of the sales tax collections at a
                       rate

16     of 4% in the 12-month period ending June 30 of the state
                       fiscal

17     year in which the payments under this subsection are made by
                       3,

18     and then dividing that result by the total statewide
                       adjusted

19     unit type population as determined under subdivision (c).

20          (e) Determine the unit type population payment for each

21     city, village, and township by multiplying the result under
                       sub-

22     division (d) by the adjusted unit type population for that
                       city,

23     village, or township.

24          (10) Subject to section 13d, for the 1998-1999 through

25     2005-2006 state fiscal years and for the period of October
                       1,

26     2006 through June 30, 2007, subject to the limitations under
                       this

27     section, a yield equalization payment shall be made to each
                       city,



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                                  11

 1    village, and township with a population of less than 750,000

 2     sufficient to provide the guaranteed tax base for a local
                       tax

 3     effort not to exceed 0.02.  The payment shall be determined
                       as

 4     follows:

 5          (a) The guaranteed tax base is the maximum combined
                       state

 6     and local per capita taxable value that can be guaranteed in
                       a

 7  state fiscal year to each city, village, and township for a
             local

 8     tax effort not to exceed 0.02 if an amount equal to 74.94%
                       of

 9     21.3% of the state sales tax at a rate of 4% is distributed
                       to

10     cities, villages, and townships whose per capita taxable
                       value is

11     below the guaranteed tax base.

12          (b) The full yield equalization payment to each city,
                       vil-

13     lage, and township is the product of the amounts determined
                       under

14     subparagraphs (i) and (ii):

15          (i) An amount greater than zero that is equal to
                       the differ-

16     ence between the guaranteed tax base determined in

17     subdivision (a) and the per capita taxable value of the
                       city,

18     village, or township.

19          (ii) The local tax effort of the city, village,
                       or township,

20     not to exceed 0.02, multiplied by the population of that
                       city,

21     village, or township.

22          (c) The yield equalization payment is the full yield
                       equali-

23     zation payment divided by 3.

24          (11) For state fiscal years after the 1997-1998 state
                       fiscal

25     year, distributions under this section for cities, villages,
                       and

26     townships with populations of less than 750,000 shall be

27     determined as follows:



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                                  12

 1         (a) For the 1998-1999 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) Ninety percent of the total amount available
                       for distri-

 5     bution under subsections (8), (9), and (10) for the 1998-1999

 6     state fiscal year multiplied by the city's, village's, or

 7     township's percentage share of the distributions under this
                       sec-

 8     tion and section 12a minus the amount of a distribution
                       under

 9     this section and section 12a to a city that is eligible to

10     receive a distribution under subsection (6) in the 1997-1998

11     state fiscal year.

12          (ii) Ten percent of the total amount available
                       for distribu-

13     tion under subsections (8), (9), and (10) for the 1998-1999
                       state

14     fiscal year multiplied by the percentage share of the
                       distribu-

15     tion amounts calculated under subsections (8), (9), and
                       (10).

16          (b) For the 1999-2000 state fiscal year, the payment
                       under

17     this section for each city, village, and township shall be
                       the

18     sum of the following:

19          (i) Eighty percent of the total amount available
                       for distri-

20     bution under subsections (8), (9), and (10) for the 1999-2000

21     state fiscal year multiplied by the city's, village's, or

22     township's percentage share of the distributions under this
                       sec-

23     tion and section 12a minus the amount of a distribution
                       under

24     this section and section 12a to a city that is eligible to

25     receive a distribution under subsection (6) in the 1997-1998

26     state fiscal year.





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                                  13

 1         (ii) Twenty percent of the total amount
             available for

 2     distribution under subsections (8), (9), and (10) for the

 3     1999-2000 state fiscal year multiplied by the city's,
                       village's,

 4     or township's percentage share of the distribution amounts
                       calcu-

 5     lated under subsections (8), (9), and (10).

 6          (c) For the 2000-2001 state fiscal year, the payment
                       under

 7     this section for each city, village, and township shall be
                       the

 8     sum of the following:

 9          (i) Seventy percent of the total amount
                       available for dis-

10     tribution under subsections (8), (9), and (10) for the 2000-2001

11     state fiscal year multiplied by the city's, village's, or

12     township's percentage share of the distributions under this
                       sec-

13     tion and section 12a minus the amount of a distribution
                       under

14     this section and section 12a to a city that is eligible to

15     receive a distribution under subsection (6) in the 1997-1998

16     state fiscal year.

17          (ii) Thirty percent of the total amount
                       available for dis-

18     tribution under subsections (8), (9), and (10) for the 2000-2001

19     state fiscal year multiplied by the percentage share of the
                       dis-

20     tribution amounts calculated under subsections (8), (9), and

21     (10).

22          (d) For the 2001-2002 state fiscal year, the payment
                       under

23     this section for each city, village, and township shall be
                       the

24     sum of the following:

25          (i) Sixty percent of the total amount available
                       for distri-

26     bution under subsections (8), (9), and (10) for the 2001-2002

27     state fiscal year multiplied by the city's, village's, or



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                                  14

 1    township's percentage share of the distributions under this

 2     section and section 12a minus the amount of a distribution
                       under

 3     this section and section 12a to a city that is eligible to

 4     receive a distribution under subsection (6) in the 1997-1998

 5     state fiscal year.

 6          (ii) Forty percent of the total amount available
                       for distri-

 7     bution under subsections (8), (9), and (10) for the 2001-2002

 8     state fiscal year multiplied by the percentage share of the
                       dis-

 9     tribution amounts calculated under subsections (8), (9), and

10     (10).

11          (e) For the 2002-2003 state fiscal year, the payment
                       under

12     this section for each city, village, and township shall be
                       the

13     sum of the following:

14          (i) Fifty percent of the total amount available
                       for distri-

15     bution under subsections (8), (9), and (10) for the 2002-2003

16     state fiscal year multiplied by the city's, village's, or

17     township's percentage share of the distributions under this
                       sec-

18     tion and section 12a minus the amount of a distribution
                       under

19     this section and section 12a to a city that is eligible to

20     receive a distribution under subsection (6) in the 1997-1998

21     state fiscal year.

22          (ii) Fifty percent of the total amount available
                       for distri-

23     bution under subsections (8), (9), and (10) for the 2002-2003

24     state fiscal year multiplied by the percentage share of the
                       dis-

25     tribution amounts calculated under subsections (8), (9), and

26     (10).





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                                  15

 1         (f) For the 2003-2004 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) Forty percent of the total amount available
                       for distri-

 5     bution under subsections (8), (9), and (10) for the 2003-2004

 6     state fiscal year multiplied by the city's, village's, or

 7     township's percentage share of the distributions under this
                       sec-

 8     tion and section 12a minus the amount of a distribution
                       under

 9     this section and section 12a to a city that is eligible to

10     receive a distribution under subsection (6) in the 1997-1998

11     state fiscal year.

12          (ii) Sixty percent of the total amount available
                       for distri-

13     bution under subsections (8), (9), and (10) for the 2003-2004

14     state fiscal year multiplied by the percentage share of the
                       dis-

15     tribution amounts calculated under subsections (8), (9), and

16     (10).

17          (g) For the 2004-2005 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) Thirty percent of the total amount available
                       for distri-

21     bution under subsections (8), (9), and (10) for the 2004-2005

22     state fiscal year multiplied by the city's, village's, or

23     township's percentage share of the distributions under this
                       sec-

24     tion and section 12a minus the amount of a distribution
                       under

25     this section and section 12a to a city that is eligible to

26     receive a distribution under subsection (6) in the 1997-1998

27     state fiscal year.



   01531'99

                                  16

 1         (ii) Seventy percent of the total amount
             available for

 2     distribution under subsections (8), (9), and (10) for the

 3     2004-2005 state fiscal year multiplied by the percentage
                       share of

 4     the distribution amounts calculated under subsections (8),
                       (9),

 5     and (10).

 6          (h) For the 2005-2006 state fiscal year, the payment
                       under

 7     this section for each city, village, and township shall be
                       the

 8     sum of the following:

 9          (i) Twenty percent of the total amount available
                       for distri-

10     bution under subsections (8), (9), and (10) for the 2005-2006

11     state fiscal year multiplied by the city's, village's, or

12     township's percentage share of the distributions under this
                       sec-

13     tion and section 12a minus the amount of a distribution
                       under

14     this section and section 12a to a city that is eligible to

15     receive a distribution under subsection (6) in the 1997-1998

16     state fiscal year.

17          (ii) Eighty percent of the total amount
                       available for dis-

18     tribution under subsections (8), (9), and (10) for the 2005-2006

19     state fiscal year multiplied by the percentage share of the
                       dis-

20     tribution amounts calculated under subsections (8), (9), and

21     (10).

22          (i) For the period of October 1, 2006 through June 30,
                       2007,

23     the payment under this section for each city, village, and
                       town-

24     ship shall be the sum of the following:

25          (i) Ten percent of the total amount available
                       for distribu-

26     tion under subsections (8), (9), and (10) for the 2006-2007
                       state

27     fiscal year multiplied by the city's, village's, or
                       township's



   01531'99

                                  17

 1    percentage share of the distributions under this section and

 2     section 12a minus the amount of a distribution under this
                       section

 3     and section 12a to a city that is eligible to receive a
                       distribu-

 4     tion under subsection (6) in the 1997-1998 state fiscal
                       year.

 5          (ii) Ninety percent of the total amount
                       available for dis-

 6     tribution under subsections (8), (9), and (10) for the 2006-2007

 7     state fiscal year multiplied by the percentage share of the
                       dis-

 8     tribution amounts calculated under subsections (8), (9), and

 9     (10).

10          (12) Except as otherwise provided in this subsection,
                       the

11     total payment to any city, village, or township under this
                       act

12     and section 10 of article IX of the state constitution of
                       1963

13     shall not increase by more than 8% over the amount of the
                       payment

14     under this act and section 10 of article IX of the state
                       consti-

15     tution of 1963 in the immediately preceding state fiscal
                       year.

16     From the amount not distributed because of the limitation
                       imposed

17     by this subsection, the department shall distribute an
                       amount to

18     certain cities, villages, and townships such that the
                       percentage

19     increase in the total payment under this act and section 10
                       of

20     article IX of the state constitution of 1963 from the
                       immediately

21     preceding state fiscal year to each of those cities,
                       villages,

22     and townships is equal to, but does not exceed, the
                       percentage

23     increase from the immediately preceding state fiscal year of
                       any

24     city, village, or township that does not receive a
                       distribution

25     under this subsection.  This subsection does not apply for
                       state

26     fiscal years after the 2000 federal decennial census becomes

27     official to a city, village, or township with a 10% or more



   01531'99

                                  18

 1    increase in population from the official 1990 federal
             decennial

 2     census to the official 2000 federal decennial census.

 3          (13) The percentage allocations to distributions under
                       sub-

 4     sections (8) to (10) pursuant to subsection (11) shall be
                       calcu-

 5     lated as if, in any state fiscal year, the amount
                       appropriated

 6     under this section for distribution to cities, villages, and

 7     townships is 74.94% of 21.3% of the sales tax at a rate of
                       4%.

 8     If the amount appropriated under this section to cities,
                       vil-

 9     lages, and townships is less than 74.94% of 21.3% of the
                       sales

10     tax at a rate of 4%, any reduction made necessary by this
                       appro-

11     priation in distributions to cities, villages, and townships

12     shall first be applied to the distribution under subsections
                       (8)

13     to (10) and any remaining amount shall be applied to the
                       other

14     distributions under this section.

15          (14) A township that provides for or makes available
                       fire,

16     police on a 24-hour basis either through contracting for or

17     directly employing personnel, water to 50% or more of its
                       resi-

18     dents, and sewer services to 50% or more of its residents
                       and has

19     a population of 10,000 or more or a township that has a
                       popula-

20     tion of 20,000 or more shall use the unit type population
                       weight

21     factor under subsection (9)(a) for a city with the same
                       popula-

22     tion as the township.

23          (15) For a state fiscal year in which the sales tax
                       collec-

24     tions decrease from the sales tax collections for the
                       immediately

25     preceding state fiscal year, the department shall reduce the

26     amount to be distributed to a city with a population of
                       750,000

27     or more under subsection (6) by an amount determined by



   01531'99

                                  19

 1    subtracting the amount the city is eligible for under
             section 10

 2     of article IX of the state constitution of 1963 for the
                       state

 3     fiscal year from $333,900,000.00 and multiplying that result
                       by

 4     the same percentage as the percentage decrease in sales tax
                       col-

 5     lections for that state fiscal year as compared to sales tax
                       col-

 6     lections for the immediately preceding state fiscal year.

 7          (16) Notwithstanding any other provision of this
                       section for

 8     the 1998-1999 state fiscal year, the total combined amount

 9     received by each city, village, and township under this
                       section

10     and section 10 of article IX of the state constitution of
                       1963

11     shall not be less than the combined amount received under
                       this

12     section, section 12a, and section 10 of article IX of the
                       state

13     constitution of 1963 in the 1997-1998 state fiscal year. 
                       The

14     increase, if any, for each city, village, and township from
                       the

15     1997-1998 state fiscal year, other than a city that receives
                       a

16     distribution under subsection (6), shall be reduced by a
                       uniform

17     percentage to the extent necessary to fund distributions
                       under

18     this subsection. 

19         (6)  (17)  The payments under subsections (3),
             (4), and (5)

20    shall be made during each October, December, February, April,

21    June, and August.  Payments under subsections (3), (4), and (5)

22    shall be based on collections from the sales tax at the rate of

23    4% in the 2-month period ending the prior August 31, October 31,

24    December 31, February 28, April 30, and June 30, and for the

25    1996-1997 and 1997-1998 state fiscal years only, the payments

26    shall be reduced by 1/6 of the total distribution for the state

27    fiscal year under section 12a.



   01531'99

                                  20

 1         (7)  (18)  Payments under this section shall
             be made from

 2    revenues collected during the state fiscal year in which the pay-

 3    ments are made.

 4         (8)  (19)  Distributions provided for by this
             act are

 5    subject to an annual appropriation by the legislature.














































   01531'99          Final page.                            FDD