Legislature Out for In District Work Period and Thanksgiving

The legislature has been out the last two weeks in November for their in district work period and the Thanksgiving holiday.  They will be back in session beginning the week of December 2.  We expect two final weeks of legislative session before they break for the holidays.

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

Problematic Local Option Tax Exemption for School Properties on Senate Floor

Contact your Senator to voice concerns regarding House Bill 4121, a bill that as passed would allow local units of government to exempt property purchased from a school district from real property taxes for five years.

The legislation would automatically exempt these properties unless the local unit of government passes a resolution to place them back on the tax rolls within 60 days of the effective date of the legislation.  As a result if a local unit does not specifically pass that resolution, any school property sold in your community would automatically be off the tax rolls.

Contact your Senator to let them know how this legislation would negatively impact your community!

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

Application Period Extended for Competitive Grant Assistance Program

The application period for the first round of the Competitive Grant Assistance Program for Fiscal Year 2014 has been extended.  Applications will now be accepted through January 24, 2014.

Visit the Department of Treasury’s website for more information.

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

House Considers Legislation Decreasing Interest on County Chargebacks

Last week the House Local Government Committee heard testimony on HB 5074, a bill that would change the monthly interest rate that a county treasurer can charge other taxable units in the county that have delinquent property taxes due. The current monthly rate of interest is one percent. Under the bill, the monthly rate of interest would be “up to” one percent.
Under Michigan’s tax reversion process, county treasurers can assess “chargebacks” under the protocol they follow when local units of government have borrowed from a county’s delinquent tax revolving fund. If summer and winter property taxes are not collected by March 1 of the following year that the tax is owed, local treasurers pass on notices of unpaid or delinquent taxes to county treasurers. In many counties, the county treasurer runs a delinquent tax revolving fund.
Upon receiving the notices of unpaid taxes, the county treasurer advances funds to those
local governments that are owed taxes, making them financially whole at that time with
the understanding that local treasurers will pay back the advance, either after the taxes in
arrears are paid by the property owners, or after the property is sold at a public auction. Under state statute, county treasurers charge a monthly interest rate of 1 percent for advancing the money to make the local unit of government whole.  This legislation would give the county discretion to charge “up to” one percent.
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

House Considers Legislation Eliminating Printed Copies of Tax Rolls

Last week the House Local Government Committee heard testimony on HB 5102, a bill that would eliminate the requirement that county treasurers make a printed copy of the tax rolls available for inspection, if the tax roll is maintained on a computerized database.
Now under the law, the State Tax Commission must authorize the use of a computerized
data base system as the tax roll if the local tax collecting unit or the county treasurer
demonstrates that the proposed system has the capacity to enable compliance with nine state requirements. House Bill 5102 would eliminate in their entirety the four requirements for printed copies to be available of (1) the “original pre-collection tax roll,” (2) a separate printout of “all parcel splits and combinations,” (3) a separate computer printout of all corrections and adjustments to the pre-collection tax roll authorized the by the board of review,” and (4) the requirement to make available “a posted computer printed tax roll.”
The committee did not vote on the legislation, and we anticipate another committee hearing on the bill.

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

Fenton Mayor Pro Tem, Patricia Lockwood, Elected to National League of Cities Board of Directors

Patricia Lockwood

Patricia Lockwood, Mayor Pro Tem of Fenton, was elected to the National League of Cities Board of Directors over the weekend at their Congress of Cities and Exposition in Seattle, Washington.

Mayor Pro Tem Lockwood was selected from a large candidate pool and will serve two years as Board member.

She is also a past president of the Michigan Municipal League Board of Trustees (1994-95) and an honorary life member.

Congratulations to Pat!

Read more here about the NLC conference in a blog by League CEO and Executive Director Dan Gilmartin.

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

House Passes Firefighter Bargaining Preemption

Yesterday the House passed House Bill 4624, a bill that would make a full-time firefighter’s ability to work as a firefighter in another community a prohibited subject of bargaining.The legislation is supported by the fire chiefs and the Michigan Townships Association.

The League is opposed to this legislation as it violates local control in the bargaining process. The legislation now heads to the 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

Governor Signs Tax Exemption for Disabled Veterans

This week the Governor signed Senate Bill 352 (now PA 161 of 2013), a bill that would create a tax exemption for disabled veterans.

This new law specifically exempts from property taxes real property used and owned as a homestead by a disabled veteran who was discharged from the Armed Forces of the United States under honorable conditions.

The League opposed this legislation and will continue to be opposed to mandatory property tax exemptions. In 2011 the legislature and administration eliminated state tax exemptions so as to not “pick winners and losers” and balance the state budget. Yet we continue to combat legislation that mandates our members give property tax exemptions for various individuals. The policy is inconsistent, and we are opposed to this piecemeal look at tax policy.

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

Redevelopment Liquor License Bill Passes House

The Michigan House of Representatives passed HB 4257 (Denby, R-Fowlerville), a reintroduction from last session, today. This bill amends the Michigan liquor control code dealing with redevelopment liquor licenses. According to a recent determination by the Liquor Control Commission, only businesses in cities are eligible for redevelopment liquor licenses. This determination is counter to the last six years, where the Liquor Control Commission has allowed the redevelopment licenses in TIF districts to be for cities, villages, or townships. This bill is an attempt to rectify this issue and clarifies eligibility for the redevelopment liquor licenses in the development districts to cities, villages, and townships. We have heard from multiple villages worried about this because their redevelopment efforts are coming to a halt without being eligible for these redevelopment licenses.

Towards the end of session last year this bill became an issue because the Restaurant Association and the Licensed Beverage Association wanted an amendment that expanded the search for a quota license to the entire county instead of only the municipality prior to seeking a redevelopment license, a problem from the League’s perspective because there are so many different cost inconsistencies from one area of the county to another. It passed out of the House last session without the amendment but there was a commitment by the chair of the senate committee it was in to add that amendment on. However, it died in that committee at the end of session.

Rep. Denby is committed to doing this for the communities who have been using this as a redevelopment tool but will now not be able to do so unless this is changed. Knowing what happened last session and that it would be the same fight this session, she and her staff tried to work a solution that would work for both municipalities and the industry. The substitute version states the countywide search is only necessary in the areas where the license fair market value is the same as the municipality where the establishment is located.

This bill now moves onto the Senate.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Senate Blight Package Passes House

The package of blight bills related to communities who have administrative hearings bureaus, SB 35-39, passed the full House of Representatives today.  An amendment was added on the house floor from Rep. Banks (D-Grosse Pointe Woods) that would state any property holding a principal residence exemption containing blight violations would not be subject to foreclosure unless it also was delinquent on taxes.  These bills now move back to the Senate for concurrence.

There have been problems throughout the state with the lack of appropriate contact information when dealing with blighted property notices on financial institution owned property.  In response to those concerns and because of this legislation, the Michigan Department of Information and Financial Services is currently working on integrating a list of registered agents at financial institutions with their website.  In the meantime, anyone who might be interested in that agent information can call DIFS toll-free at 877-999-6442 or DIFS Corporate Review directly at 517-373-7236.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.