September 24, 2003, Introduced by Senators McMANUS, CROPSEY and PATTERSON 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 2003 PA 168.
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, 1992
10 and ending before October 1, 1996, the collections from the state
1 income tax otherwise available for distribution to counties in
2 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 year and state fiscal
15 years and for the
period of October 1, 2006 through September
16 30, 2007 after the 1998-1999 state fiscal year, the
department
17 of treasury shall cause to be paid to counties all of the
18 following:
19 (a) Except as provided in subdivision (c), an amount equal to
20 the amount the county was eligible to receive under section 12a
21 in the 1997-1998 state fiscal year.
22 (b) Except as provided in subdivision (c), an amount equal to
23 25.06% of 21.3% of the sales tax collections at a rate of 4% in
24 the 12-month period ending June 30 of the state fiscal year in
25 which the payments are made minus the amount determined under
26 subdivision (a), which remainder shall be distributed on a per
27 capita basis. If the amount appropriated under this section to
1 counties is less than 25.06% of 21.3% of the sales tax rate of
2 4%, any reduction made necessary by this appropriation in
3 distributions to counties shall first be applied to the
4 distribution under this subdivision.
5 (c) For the 2002-2003 state fiscal year only, each county
6 shall receive the lesser of 96.5%, or the percentage determined
7 under this subdivision, of the amount that the county would have
8 received if the total available for distribution under
9 subdivisions (a) and (b) were $211,549,002.00. The total amount
10 available for distribution to all counties under this subdivision
11 shall not exceed $204,144,787.00. For the 2002-2003 state fiscal
12 year, the percentage under this subdivision shall be determined
13 by dividing the sum of all payments under section 10 of article
14 IX of the state constitution of 1963 and $791,070,000.00 by
15 $1,515,644,218.00. For the 2003-2004 state fiscal year only,
16 each county shall receive the lesser of 97%, or the percentage
17 determined under this subdivision, of the amount distributed to
18 the county under this subsection for the 2002-2003 state fiscal
19 year. For the 2003-2004 state fiscal year, the percentage under
20 this subdivision shall be determined by dividing the sum of all
21 payments under section 10 of article IX of the state constitution
22 of 1963 and $724,800,000.00 by $1,407,850,000.00 and then
23 subtracting 0.03.
24 (4) After September 30, 2007, 25.06% of 21.3% of the sales
25 tax collections at a
rate of 4% shall be distributed to counties
26 as provided by law.
27 (5) The payments under subsection (3) shall be made from
1 revenues collected during the state fiscal year in which the
2 payments are made and shall be made during each October,
3 December, February, April, June, and August. Payments shall be
4 based on collections from the sales tax at a rate of 4% in the
5 2-month period ending the prior August 31, October 31, December
6 31, February 28, April 30, and June 30, and for the 1996-1997 and
7 1997-1998 state fiscal years only the payments shall be reduced
8 by 1/6 of the total distribution for the state fiscal year under
9 section 12a. For state fiscal years after the 1995-1996 state
10 fiscal year, the collections from the sales tax otherwise
11 available for distribution to counties under subsection (3) in
12 December shall be increased by $17,000,000.00 and the collections
13 from the sales tax otherwise available for distribution to
14 counties under subsection (3) in April shall be decreased by
15 $17,000,000.00.
16 Sec. 13. (1) This subsection and subsection (2) apply to
17 distributions to cities, villages, and townships during the state
18 fiscal years before the 1996-1997 state fiscal year of
19 collections from the state income tax and single business tax.
20 Except as otherwise provided in subsection (2), the department of
21 treasury shall cause to be paid to each city, village, and
22 township its share, computed in accordance with the tax effort
23 formula, of the following revenues:
24 (a) During each August, November, February, and May, the
25 collections from the state income tax for the quarter periods
26 ending the prior June 30, September 30, December 31, and March 31
27 that are available for distribution to cities, villages, and
1 townships under the income tax act of 1967, 1967 PA 281,
2 MCL 206.1 to 206.532.
3 (b) The amount of the collections from the single business
4 tax available for distribution to cities, villages, and townships
5 under former section 136 of the single business tax act, 1975
6 PA 228.
7 (2) The amount of collections of the state income tax
8 otherwise available for distribution to cities, villages, and
9 townships in November, February, and May, computed in accordance
10 with the tax effort formula, shall be increased by
11 $22,600,000.00. The amount of collections otherwise available
12 for distribution to cities, villages, and townships in August,
13 computed in accordance with the tax effort formula, shall be
14 decreased by $67,800,000.00.
15 (3) This subsection applies to distributions to cities,
16 villages, and townships for the 1996-1997 state fiscal year. The
17 department shall cause to be paid in accordance with the tax
18 effort formula an amount equal to 75.5% of the difference between
19 21.3% of the sales tax collections at a rate of 4% in the
20 12-month period ending June 30 of the state fiscal year in which
21 the payments are made and the total distribution for the state
22 fiscal year under section 12a.
23 (4) The department of treasury shall cause to be paid during
24 the 1997-1998 state fiscal year an amount equal to 75.5% of the
25 difference between 21.3% of the sales tax collections at a rate
26 of 4% in the 12-month period ending June 30 of the state fiscal
27 year in which the payments are made and the total distribution
1 for the state fiscal year under section 12a, both of the
2 following:
3 (a) To each city, village, and township, the amount of
4 collections distributed under subsection (3) to cities, villages,
5 and townships for the 1996-1997 state fiscal year or its pro rata
6 share of the collections if the collections are less than the
7 amount of collections distributed under subsection (3) for the
8 1996-1997 state fiscal year. A city's, village's, or township's
9 share of revenues under this subdivision shall be computed using
10 the tax effort formula.
11 (b) To each city, village, and township its share of the
12 collections to the extent the total collections available for
13 distribution under this subsection exceed the amount distributed
14 to cities, villages, and townships under subdivision (a) for the
15 fiscal year. A city's, village's, or township's share of
16 revenues under this subdivision shall be computed on a per capita
17 basis.
18 (5) Subject to section 13d, for the 1998-1999 through
19 2005-2006 2003-2004 state fiscal years, and
for the period of
20 October 1, 2006 through September 30, 2007, the
department of
21 treasury shall cause distributions determined under subsections
22 (6) to (13) to be paid to each city, village, and township from
23 an amount equal to 74.94% of 21.3% of the sales tax collections
24 at a rate of 4% in the 12-month period ending June 30 of the
25 state fiscal year in which the payments are made. After
26 September 30, 2007 2004,
74.94% of 21.3% of sales tax
27 collections at a rate of 4% shall be distributed to cities,
1 villages, and townships as
provided by law on a per capita
2 basis.
3 (6) Subject to section 13d, for the 1998-1999 through
4 2005-2006 2003-2004 state fiscal years, and
for the period of
5 October 1, 2006 through September 30, 2007, except
for the
6 2002-2003 and 2003-2004 state fiscal years, and except as
7 otherwise provided in subsection (15), the department of treasury
8 shall cause to be paid $333,900,000.00 to a city with a
9 population of 750,000 or more as the total combined distribution
10 under this act and section 10 of article IX of the state
11 constitution of 1963 as annualized for any period of less than 12
12 months to that city. For the 2002-2003 state fiscal year only,
13 the total combined distribution under this subsection and
14 section 10 of article IX of the state constitution of 1963 shall
15 be the lesser of $322,213,500.00 or $333,900,000.00 multiplied by
16 the percentage as determined under this subsection. For the
17 2002-2003 state fiscal year, the percentage under this subsection
18 shall be determined by dividing the sum of all payments under
19 section 10 of article IX of the state constitution of 1963 and
20 $791,070,000.00 by $1,515,644,218.00. For the 2003-2004 state
21 fiscal year only, the total combined distribution under this
22 subsection and section 10 of article IX of the state constitution
23 of 1963 shall be the lesser of 97%, or the percentage determined
24 under this subsection, of the total combined distribution under
25 this subsection and section 10 of article IX of the state
26 constitution of 1963 for the 2002-2003 state fiscal year. For
27 the 2003-2004 state fiscal year, the percentage under this
1 subsection shall be determined by dividing the sum of all
2 payments under section 10 of article IX of the state constitution
3 of 1963 and $724,800,000.00 by $1,407,850,000.00 and then
4 subtracting 0.03.
5 (7) Except as otherwise provided in this subsection,
6 distributions under subsections (8) to (13) to cities, villages,
7 and townships with populations of less than 750,000 shall be made
8 from the amount available for distribution under this section
9 that remains after the distribution under subsection (6) is
10 made. For the 2002-2003 state fiscal year only, each city,
11 village, and township with a population of less than 750,000
12 shall receive the lesser of 96.5%, or the percentage determined
13 under this subsection, of the amount that the city, village, or
14 township would have received if the total available for
15 distribution under subsections (8) to (13) were $363,069,728.00
16 and the total available for distribution under section 10 of
17 article IX of the state constitution of 1963 were
18 $607,125,488.00. The total amount available for distribution to
19 all cities, villages, and townships under this subsection shall
20 not exceed $936,238,383.00. For the 2002-2003 state fiscal year,
21 the percentage under this subsection shall be determined by
22 dividing the sum of all payments under section 10 of article IX
23 of the state constitution of 1963 and $791,070,000.00 by
24 $1,515,644,218.00. For the 2003-2004 state fiscal year only,
25 each city, village, and township with a population of less than
26 750,000 shall receive an amount equal to the lesser of 97%, or
27 the percentage determined under this subsection, of the amount
1 distributed to the city, village, or township under this
2 subsection and section 10 of article IX of the state constitution
3 of 1963 for the 2002-2003 state fiscal year. For the 2003-2004
4 state fiscal year, the percentage under this subsection shall be
5 determined by dividing the sum of all payments under section 10
6 of article IX of the state constitution of 1963 and
7 $724,800,000.00 by $1,407,850,000.00 and then subtracting 0.03.
8 The amount of the adjustment under this subsection shall be
9 accomplished by reducing the payments under subsections (8) to
10 (13), and payments under section 10 of article IX shall not be
11 reduced based on any adjustments made under this subsection.
12 (8) Subject to section 13d, for the 1998-1999 through
13 2005-2006 2003-2004 state fiscal years, and
for the period of
14 October 1, 2006 through September 30, 2007, for
cities,
15 villages, and townships with populations of less than 750,000,
16 subject to the limitations under this section, a taxable value
17 payment shall be made to each city, village, and township
18 determined as follows:
19 (a) Determine the per capita taxable value for each city,
20 village, and township by dividing the taxable value of that city,
21 village, or township by the population of that city, village, or
22 township.
23 (b) Determine the statewide per capita taxable value by
24 dividing the total taxable value of all cities, villages, and
25 townships by the total population of all cities, villages, and
26 townships.
27 (c) Determine the per capita taxable value ratio for each
1 city, village, and township by dividing the statewide per capita
2 taxable value by the per capita taxable value for that city,
3 village, or township.
4 (d) Determine the adjusted taxable value population for each
5 city, village, and township by multiplying the per capita taxable
6 value ratio as determined under subdivision (c) for that city,
7 village, or township by the population of that city, village, or
8 township.
9 (e) Determine the total statewide adjusted taxable value
10 population which is the sum of all adjusted taxable value
11 population for all cities, villages, and townships.
12 (f) Determine the taxable value payment rate by dividing
13 74.94% of 21.3% of the sales tax collections at a rate of 4% in
14 the 12-month period ending June 30 of the state fiscal year in
15 which the payments under this subsection are made by 3, and
16 dividing that result by the total statewide adjusted taxable
17 value population as determined under subdivision (e).
18 (g) Determine the taxable value payment for each city,
19 village, and township by multiplying the result under
20 subdivision (f) by the adjusted taxable value population for that
21 city, village, or township.
22 (9) Subject to section 13d, for the 1998-1999 through
23 2005-2006 2003-2004 state fiscal years, and
for the period of
24 October 1, 2006 through September 30, 2007, subject
to the
25 limitations under this section and except as provided in
26 subsection (14), a unit type population payment shall be made to
27 each city, village, and township with a population of less than
1 750,000 determined as follows:
2 (a) Determine the unit type population weight factor for each
3 city, village, and township as follows:
4 (i) For a township with a population of 5,000 or less, the
5 unit type population weight factor is 1.0.
6 (ii) For a township with a population of more than 5,000 but
7 less than 10,001, the unit type population weight factor is 1.2.
8 (iii) For a township with a population of more than 10,000
9 but less than 20,001, the unit type population weight factor is
10 1.44.
11 (iv) For a township with a population of more than 20,000 but
12 less than 40,001, the unit type population weight factor is
13 1.73.
14 (v) For a township with a population of more than 40,000 but
15 less than 80,001, the unit type population weight factor is
16 2.07.
17 (vi) For a township with a population of more than 80,000,
18 the unit type population weight factor is 2.49.
19 (vii) For a village with a population of 5,000 or less, the
20 unit type population weight factor is 1.5.
21 (viii) For a village with a population of more than 5,000 but
22 less than 10,001, the unit type population weight factor is 1.8.
23 (ix) For a village with a population of more than 10,000, the
24 unit type population weight factor is 2.16.
25 (x) For a city with a population of 5,000 or less, the unit
26 type population weight factor is 2.5.
27 (xi) For a city with a population of more than 5,000 but less
1 than 10,001, the unit type population weight factor is 3.0.
2 (xii) For a city with a population of more than 10,000 but
3 less than 20,001, the unit type population weight factor is 3.6.
4 (xiii) For a city with a population of more than 20,000 but
5 less than 40,001, the unit type population weight factor is
6 4.32.
7 (xiv) For a city with a population of more than 40,000 but
8 less than 80,001, the unit type population weight factor is
9 5.18.
10 (xv) For a city with a population of more than 80,000 but
11 less than 160,001, the unit type population weight factor is
12 6.22.
13 (xvi) For a city with a population of more than 160,000 but
14 less than 320,001, the unit type population weight factor is
15 7.46.
16 (xvii) For a city with a population of more than 320,000 but
17 less than 640,001, the unit type population weight factor is
18 8.96.
19 (xviii) For a city with a population of more than 640,000,
20 the unit type population weight factor is 10.75.
21 (b) Determine the adjusted unit type population for each
22 city, village, and township by multiplying the unit type
23 population weight factor for that city, village, or township as
24 determined under subdivision (a) by the population of the city,
25 village, or township.
26 (c) Determine the total statewide adjusted unit type
27 population, which is the sum of the adjusted unit type population
1 for all cities, villages, and townships.
2 (d) Determine the unit type population payment rate by
3 dividing 74.94% of 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 under this subsection are made by 3,
6 and then dividing that result by the total statewide adjusted
7 unit type population as determined under subdivision (c).
8 (e) Determine the unit type population payment for each city,
9 village, and township by multiplying the result under subdivision
10 (d) by the adjusted unit type population for that city, village,
11 or township.
12 (10) Subject to section 13d, for the 1998-1999 through
13 2005-2006 2003-2004 state fiscal years, and
for the period of
14 October 1, 2006 through September 30, 2007, subject
to the
15 limitations under this section, a yield equalization payment
16 shall be made to each city, village, and township with a
17 population of less than 750,000 sufficient to provide the
18 guaranteed tax base for a local tax effort not to exceed 0.02.
19 The payment shall be determined as follows:
20 (a) The guaranteed tax base is the maximum combined state and
21 local per capita taxable value that can be guaranteed in a state
22 fiscal year to each city, village, and township for a local tax
23 effort not to exceed 0.02 if an amount equal to 74.94% of 21.3%
24 of the state sales tax at a rate of 4% is distributed to cities,
25 villages, and townships whose per capita taxable value is below
26 the guaranteed tax base.
27 (b) The full yield equalization payment to each city,
1 village, and township is the product of the amounts determined
2 under subparagraphs (i) and (ii):
3 (i) An amount greater than zero that is equal to the
4 difference between the guaranteed tax base determined in
5 subdivision (a) and the per capita taxable value of the city,
6 village, or township.
7 (ii) The local tax effort of the city, village, or township,
8 not to exceed 0.02, multiplied by the population of that city,
9 village, or township.
10 (c) The yield equalization payment is the full yield
11 equalization payment divided by 3.
12 (11) For the 1997-1998 through 2003-2004 state fiscal years,
13 after the 1997-1998
state fiscal year, distributions
under this
14 section for cities, villages, and townships with populations of
15 less than 750,000 shall be determined as follows:
16 (a) For the 1998-1999 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) Ninety percent of the total amount available for
20 distribution under subsections (8), (9), and (10) for the
21 1998-1999 state fiscal year multiplied by the city's, village's,
22 or township's percentage share of the distributions under this
23 section 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.
27 (ii) Ten percent of the total amount available for
1 distribution under subsections (8), (9), and (10) for the
2 1998-1999 state fiscal year multiplied by the percentage share of
3 the distribution amounts calculated under subsections (8), (9),
4 and (10).
5 (b) For the 1999-2000 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) Eighty percent of the total amount available for
9 distribution under subsections (8), (9), and (10) for the
10 1999-2000 state fiscal year multiplied by the city's, village's,
11 or township's percentage share of the distributions under this
12 section and section 12a minus the amount of a distribution under
13 this section and section 12a to a city that is eligible to
14 receive a distribution under subsection (6) in the 1997-1998
15 state fiscal year.
16 (ii) Twenty percent of the total amount available for
17 distribution under subsections (8), (9), and (10) for the
18 1999-2000 state fiscal year multiplied by the city's, village's,
19 or township's percentage share of the distribution amounts
20 calculated under subsections (8), (9), and (10).
21 (c) For the 2000-2001 state fiscal year, the payment under
22 this section for each city, village, and township shall be the
23 sum of the following:
24 (i) Seventy percent of the total amount available for
25 distribution under subsections (8), (9), and (10) for the
26 2000-2001 state fiscal year multiplied by the city's, village's,
27 or township's percentage share of the distributions under this
1 section and section 12a minus the amount of a distribution under
2 this section and section 12a to a city that is eligible to
3 receive a distribution under subsection (6) in the 1997-1998
4 state fiscal year.
5 (ii) Thirty percent of the total amount available for
6 distribution under subsections (8), (9), and (10) for the
7 2000-2001 state fiscal year multiplied by the percentage share of
8 the distribution amounts calculated under subsections (8), (9),
9 and (10).
10 (d) For the 2001-2002 state fiscal year, the payment under
11 this section for each city, village, and township shall be the
12 sum of the following:
13 (i) Sixty percent of the total amount available for
14 distribution under subsections (8), (9), and (10) for the
15 2001-2002 state fiscal year multiplied by the city's, village's,
16 or township's percentage share of the distributions under this
17 section and section 12a minus the amount of a distribution under
18 this section and section 12a to a city that is eligible to
19 receive a distribution under subsection (6) in the 1997-1998
20 state fiscal year.
21 (ii) Forty percent of the total amount available for
22 distribution under subsections (8), (9), and (10) for the
23 2001-2002 state fiscal year multiplied by the percentage share of
24 the distribution amounts calculated under subsections (8), (9),
25 and (10).
26 (e) For the 2002-2003 state fiscal year, the payment under
27 this section for each city, village, and township shall be the
1 sum of the following:
2 (i) Fifty percent of the total amount available for
3 distribution under subsections (8), (9), and (10) for the
4 2002-2003 state fiscal year multiplied by the city's, village's,
5 or township's percentage share of the distributions under this
6 section and section 12a minus the amount of a distribution under
7 this section and section 12a to a city that is eligible to
8 receive a distribution under subsection (6) in the 1997-1998
9 state fiscal year.
10 (ii) Fifty percent of the total amount available for
11 distribution under subsections (8), (9), and (10) for the
12 2002-2003 state fiscal year multiplied by the percentage share of
13 the distribution amounts calculated under subsections (8), (9),
14 and (10).
15 (f) For the 2003-2004 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) Forty percent of the total amount available for
19 distribution under subsections (8), (9), and (10) for the
20 2003-2004 state fiscal year multiplied by the city's, village's,
21 or township's percentage share of the distributions under this
22 section and section 12a minus the amount of a distribution under
23 this section and section 12a to a city that is eligible to
24 receive a distribution under subsection (6) in the 1997-1998
25 state fiscal year.
26 (ii) Sixty percent of the total amount available for
27 distribution under subsections (8), (9), and (10) for the
1 2003-2004 state fiscal year multiplied by the percentage share of
2 the distribution amounts calculated under subsections (8), (9),
3 and (10).
4 (g) For the
2004-2005 state fiscal year, the payment under
5 this section for each
city, village, and township shall be the
6 sum of the following:
7 (i) Thirty percent of the total amount available for
8 distribution under
subsections (8), (9), and (10) for the
9 2004-2005 state fiscal
year multiplied by the city's, village's,
10 or township's
percentage share of the distributions under this
11 section and section
12a minus the amount of a distribution under
12 this section and
section 12a to a city that is eligible to
13 receive a distribution
under subsection (6) in the 1997-1998
14 state fiscal year.
15 (ii) Seventy percent of the total amount available for
16 distribution under
subsections (8), (9), and (10) for the
17 2004-2005 state fiscal
year multiplied by the percentage share of
18 the distribution
amounts calculated under subsections (8), (9),
19 and (10).
20 (h) For the
2005-2006 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) Twenty percent of the total amount available for
24 distribution under
subsections (8), (9), and (10) for the
25 2005-2006 state fiscal
year multiplied by the city's, village's,
26 or township's
percentage share of the distributions under this
27 section and section
12a minus the amount of a distribution under
1 this section and
section 12a to a city that is eligible to
2 receive a distribution
under subsection (6) in the 1997-1998
3 state fiscal year.
4 (ii) Eighty percent of the total amount available for
5 distribution under
subsections (8), (9), and (10) for the
6 2005-2006 state fiscal
year multiplied by the percentage share of
7 the distribution
amounts calculated under subsections (8), (9),
8 and (10).
9 (i) For the period
of October 1, 2006 through September 30,
10 2007, the payment
under this section for each city, village, and
11 township shall be the
sum of the following:
12 (i) Ten percent of the total amount available for
13 distribution under
subsections (8), (9), and (10) for the
14 2006-2007 state fiscal
year multiplied by the city's, village's,
15 or township's
percentage share of the distributions under this
16 section and section
12a minus the amount of a distribution under
17 this section and
section 12a to a city that is eligible to
18 receive a distribution
under subsection (6) in the 1997-1998
19 state fiscal year.
20 (ii) Ninety percent of the total amount available for
21 distribution under
subsections (8), (9), and (10) for the
22 2006-2007 state fiscal
year multiplied by the percentage share of
23 the distribution amounts
calculated under subsections (8), (9),
24 and (10).
25 (12) Except as otherwise provided in this subsection, for
26 state fiscal years before the 2004-2005 state fiscal year, the
27 total payment to any city, village, or township under this act
1 and section 10 of article IX of the state constitution of 1963
2 shall not increase by more than 8% over the amount of the payment
3 under this act and section 10 of article IX of the state
4 constitution of 1963 in the immediately preceding state fiscal
5 year. From the amount not distributed because of the limitation
6 imposed by this subsection, the department shall distribute an
7 amount to certain cities, villages, and townships such that the
8 percentage increase in the total payment under this act and
9 section 10 of article IX of the state constitution of 1963 from
10 the immediately preceding state fiscal year to each of those
11 cities, villages, and townships is equal to, but does not exceed,
12 the percentage increase from the immediately preceding state
13 fiscal year of any city, village, or township that does not
14 receive a distribution under this subsection. This subsection
15 does not apply for state fiscal years after the 2000 federal
16 decennial census becomes official to a city, village, or township
17 with a 10% or more increase in population from the official 1990
18 federal decennial census to the official 2000 federal decennial
19 census.
20 (13) The percentage allocations to distributions under
21 subsections (8) to (10) pursuant to subsection (11) shall be
22 calculated as if, in any state fiscal year, the amount
23 appropriated under this section for distribution to cities,
24 villages, and townships is 74.94% of 21.3% of the sales tax at a
25 rate of 4%. If the amount appropriated under this section to
26 cities, villages, and townships is less than 74.94% of 21.3% of
27 the sales tax at a rate of 4%, any reduction made necessary by
1 this appropriation in distributions to cities, villages, and
2 townships shall first be applied to the distribution under
3 subsections (8) to (10) and any remaining amount shall be applied
4 to the other distributions under this section.
5 (14) A For
state fiscal years before the 2004-2005 state
6 fiscal year, distribution under this section for a township that
7 provides for or makes available fire, police on a 24-hour basis
8 either through contracting for or directly employing personnel,
9 water to 50% or more of its residents, and sewer services to 50%
10 or more of its residents and has a population of 10,000 or more
11 or a township that has a
population of 20,000 or more shall use
12 be determined by using the unit type population weight factor
13 under subsection (9)(a) for a city with the same population as
14 the township.
15 (15) For a state fiscal year before the 2004-2005 state
16 fiscal year in which the sales tax collections decrease from the
17 sales tax collections for the immediately preceding state fiscal
18 year, the department shall reduce the amount to be distributed to
19 a city with a population of 750,000 or more under subsection (6)
20 by an amount determined by subtracting the amount the city is
21 eligible for under section 10 of article IX of the state
22 constitution of 1963 for the state fiscal year from
23 $333,900,000.00 and multiplying that result by the same
24 percentage as the percentage decrease in sales tax collections
25 for that state fiscal year as compared to sales tax collections
26 for the immediately preceding state fiscal year. This subsection
27 does not apply to the 2002-2003 and 2003-2004 state fiscal
1 years.
2 (16) Notwithstanding any other provision of this section for
3 the 1998-1999 state fiscal year, the total combined amount
4 received by each city, village, and township under this section
5 and section 10 of article IX of the state constitution of 1963
6 shall not be less than the combined amount received under this
7 section, section 12a, and section 10 of article IX of the state
8 constitution of 1963 in the 1997-1998 state fiscal year. The
9 increase, if any, for each city, village, and township from the
10 1997-1998 state fiscal year, other than a city that receives a
11 distribution under subsection (6), shall be reduced by a uniform
12 percentage to the extent necessary to fund distributions under
13 this subsection.
14 (17) The payments under subsections (3), (4), and (5) shall
15 be made during each October, December, February, April, June, and
16 August. Payments under subsections (3), (4), and (5) shall be
17 based on collections from the sales tax at the rate of 4% in the
18 2-month period ending the prior August 31, October 31, December
19 31, February 28, April 30, and June 30, and for the 1996-1997 and
20 1997-1998 state fiscal years only, the payments shall be reduced
21 by 1/6 of the total distribution for the state fiscal year under
22 section 12a.
23 (18) Payments under this section shall be made from revenues
24 collected during the state fiscal year in which the payments are
25 made.
26 (19) Distributions provided for by this act are subject to an
27 annual appropriation by the legislature.