This morning the House Tax Policy Committee heard testimony on Senate Bills 489 and 490, bills that are the first “fix” bills from the personal property tax (PPT) reform package that passed in December. The bills clarify the process for a businesses to claim exemptions under the legislation.

The League has been an active part of a drafting group of local government and business representatives who have been working on bills that would clarify the process for claiming PPT exemptions under the new legislation.

Beginning December 31, 2013, businesses will be eligible to claim a “small parcel” PPT exemption if the total value of their personal property in a tax collecting unit is $80,000 (true cash value) or less.  The remainder of the package does not go into effect until December 31, 2015; however, the package is contingent on the passage of a statewide vote in August 2014.

The League was neutral on the bills as they do reflect the work of the drafting group. You can view a copy of the League’s letter to the House Tax Policy Committee here: house tax policy 9_13 We also included a copy of the letter the League sent to Lt. Governor Brian Calley after the package passed in December: calley ltr final

We are expecting additional legislation this fall to fix other outstanding issues including the essential services assessment and how we deal with tax capture districts. The committee is expected to vote on the legislation next week.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

This morning the Senate Reforms, Restructuring and Reinventing Committee unanimously reported Senate Bill 387, legislation that would amend the Worker’s Disability Compensation Act to include a reserve or auxiliary police officer as an employee of the State for purposes of the Act when he or she was performing duties in that capacity.

In general we find this legislation to be positive. While it does expand worker’s compensation it makes these officers employees of the state thus putting the responsibility on the state to pay for any claims.

The legislation now heads to the Senate floor for further consideration.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

CALL MISS-DIG. Under the legislation passed today by the Senate Energy & Technology Committee a local unit of government faces penalties if they do not call the MISS-DIG system when beginning a project that involves digging. If a local unit does call MISS-DIG there is no liability.

This afternoon the Senate Energy and Technology Committee unanimously reported Senate Bills 539 and 540.  Originally the legislation last session would have entirely exempted any action under the MISS-DIG Act from government immunity. That was problematic for us, so the fee structure arose as a result of many discussions with the Senate and the Governor’s office, as well as utility stakeholders. The League testified that we always have concerns with expanding government immunity.  Given, however, the inclination of the legislation to create an exception to governmental immunity, this is an extremely narrow exception.

The legislation has wide support from many of the stakeholders in the process, and we will continue to work on this as it heads to the Senate floor.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

This morning the House took testimony on PA 295 of 2008, part of the 2008 energy package that specifically deals with energy efficiency and renewable energy.  The League was supportive of the 2008 package, and as a member of the Michigan Energy Michigan Jobs Coalition continues to support energy efficiency and renewable energy measures.

We submitted written testimony to the committee of the importance of energy efficiency and renewable energy that you can view here: energy & tech memj 9_13

The League has identified sustainability as one of the eight key assets for creating vibrant communities, and we continue to promote sustainability efforts in our Green Communities Challenge program.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Category one to qualify for funding under the Economic Vitality Incentive Program (EVIP) is due today, October 1, 2013. Category one is accountability and transparency; i.e., dashboard and citizens guide.

The dashboard template and F65 Citizen’s Guide are available on Treasury’s website. Category one is substantially similar to last year; however you are additionally required to include a listing of debt service requirements.

If you have any questions please contact the League or Treasury directly at TreasRevenueSharing@michigan.gov

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

This week the Senate Energy and Technology Committee discussed a rewrite of the MISS-DIG Act. Last session the Senate passed bills that would create an exception to governmental immunity under the MISS-DIG Act.

The legislation that passed the Senate last session would rewrite the MISS-DIG Act and create a structure to incent municipalities to comply with the Act.  If a local unit of government failed to comply with the Act, it is subject to a fine of up to $5,000 from the Michigan Public Service Commission (MPSC). A second violation is liable to a fine of up to $10,000. A third violation carries a fine of up to $15,000 and actual property damages.  All of these fines are preventable by calling MISS-DIG. If facilities are mis-marked, that is not the fault of the local unit of government.

This week Sen. Mike Nofs (D-Battle Creek) reintroduced the Senate-passed versions of the legislation in Senate Bills 539 and 540.  Originally the legislation last session would have entirely exempted any action under the MISS-DIG Act from government immunity. That was problematic for us, so the fee structure arose as a result of many discussions with the Senate and the Governor’s office, as well as utility stakeholders. Unfortunately with the property damages piece added in we were forced to oppose these substitutes as they reported from committee.

We look forward to continuing work on this legislation as it moves through the legislative process.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

This week the Senate Reforms, Restructuring and Reinventing Committee heard testimony on Senate Bill 387, legislation that would amend the Worker’s Disability Compensation Act to include a reserve or auxiliary police officer as an employee of the State for purposes of the Act when he or she was performing duties in that capacity.

In general we find this legislation to be positive. While it does expand worker’s compensation it makes these officers employees of the state thus putting the responsibility on the state to pay for any claims.

The committee did not vote, but we expect they will vote in the next few weeks.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Yesterday morning the House Tax Policy Committee reported Senate Bill 25, a bill that would amend the General Property Tax Act to provide property owners with a process to request an exemption from the Department of Treasury for any year that a principal residence exemption was erroneously not included on the tax roll , and would allow the Department to deny exemptions for the current and three preceding years that were erroneously included in the tax roll.

The League opposes this legislation, and it now goes to the House for its full consideration.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Yesterday the Senate Finance Committee passed Senate Bill 372 and 396, unrelated bills that both create property tax exemptions.  We have testified in both the Senate and House committees that continuing to mandate local tax exemptions is an issue for local units even if the amount is considered “negligible” by the legislature.

In 2011 the legislature eliminated all tax exemptions at the state to “level the playing field”, and yet bills continue to be pushed that mandate local tax exemptions. Not only is this inconsistent from a policy standpoint, but it takes away local revenues.

Senate Bill 372 would amend the General Property Tax Act to require agricultural property to be excluded from sales studies if, upon a transfer of ownership, an affidavit attesting that the property would remain agricultural had not been filed.

Senate Bill 396 would amend the General Property Tax Act to provide for the taxable value of property to remain essentially unchanged if the property were reconstructed due to an accident or act of God; and specify that construction required to bring the property into code compliance would not increase its taxable value. There is already a formula in current law for replacement construction, and this legislation would only serve to take away additional local revenues.

The legislation now goes to the full Senate for consideration.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Last week the House Local Government Committee heard testimony on House Bill 4729, legislation that would require local units to opt out of the Michigan Emergency Management Assistance Compact (MEMAC).

MEMAC has been in existence for over a decade; however, currently local units of government must opt into MEMAC.  HB 4729 would amend that legislation so that a local unit would be automatically included in MEMAC and must opt out.

The League, along with the Michigan Association of Chiefs of Police, have had concerns about the impact of an opt out program and its effect on local emergency management compacts as well as local liability.

The committee did not vote on the legislation.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org