Senate Considers Tax Exemptions for Disabled Veterans

Yesterday the Senate Finance Committee considered two bills that would create tax exemptions for disabled veterans.

Senate Bill 104 would allow a community to give a tax exemption to a qualified disabled veteran. This is an option for a community and not a mandate.

The committee also considered Senate Bill 352, which would specifically exempt 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 continues 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

 

House Local Government Holds Hearing on Blight Package

Today the House Local Government committee held testimony on SBs 35-39, a package of bills dealing with blighted properties.  These bills would:

  • Senate Bill 35 would allow cities that use administrative hearings bureau to adjudicate blight violations to establish additional civil and criminal penalties on a person who committed a blight violation and failed to pay a fine and costs of $1,000 or more. It would also lower the minimum population to be eligible to have an administrative hearings bureau from 2.0 million to 1.5 million for a county containing a city with a population of 3,300 or more. This bill also exempts financial institutions, credit unions and other governmental entities from the fines and penalties stated in the bill that other individuals would otherwise be subject to.
  • Senate Bill 36 would amend the Michigan Zoning Enabling Act to allow a city zoning ordinance to provide that a person would be ineligible for rezoning, site approval, or other zoning authorization if the person were delinquent in paying a fine or costs for a blight violation. This bill also exempts financial institutions, credit unions and other governmental entities from the fines and penalties stated in the bill that other individuals would otherwise be subject to.
  • Senate Bill 37 would amend the Single State Construction Code Act to allow a city to provide by ordinance that a person would be ineligible for a building permit, certificate of use and occupancy, or a variance if the person were delinquent in paying a fine or costs for a blight violation. This bill also exempts financial institutions, credit unions and other governmental entities from the fines and penalties stated in the bill that other individuals would otherwise be subject to.
  • Senate Bill 38 would amend the Revised Judicature Act to allow a city to file a garnishment action if a fine or costs were ordered for a blight violation.
  • Senate Bill 39 would amend the Home Rule City Act to allow a lien against property involved in a blight violation to be foreclosed in a city’s administrative hearings bureau.

The League was joined by officials from the city of Jackson (Dan Greer, Bethany Smith, Dennis Diffenderfer), in testifying in opposition to the bills because of the exemptions for financial institutions, credit unions and governmental entities.  We absolutely appreciate the intent of the bill sponsors in trying to give more tools to local communities with Administrative Hearings Bureaus to deal with blight offenders but these exemptions carve out a large chunk of the blight offenders.  We look forward to working with the bill sponsors as this goes forward to address our issues.

Nikki Brown is a legislative associate with the League handling economic development and land use issues.  She can be reached at nbrown@mml.org of 517-908-0305.

Bills to Exempt Detroit Zoo and DIA Millages from Tax Capture Pass Senate Committee

HB 4458-4464 passed the Senate Economic Development Committee this week.  These would prohibit a TIF district from keeping tax increment revenues from ad valorem property taxes levied under the Zoological Authorities Act and the Art Institute Authorities Act.  This language is added into the following acts:

  • Tax Increment Financing Authority Act
  • Downtown Development Authority Act
  • Brownfield Redevelopment Financing Act
  • Local Development Financing Act
  • Corridor Improvement Authority Act
  • Nonprofit Street Railway Act
  • Private Investment Infrastructure Act.

There is a larger discussion happening in the legislature on TIF tax capture in general.  I would encourage you to contact your legislators and let them know the benefit of the TIFs used in your community as well as give them an idea of the investments that they have brought into the area so they can understand the importance of them for economic development purposes.  These are a few of the last tools communities have to revitalize struggling areas and to not have them or severely limit them would have a detrimental impact on not just the municipality but the entire region.

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

Bill to Regulate Digital Billboards moves out of House Transportation Committee

HB 4629 passed out of the House Transportation Committee this week.  This bill was created in most part to deal with issues that were presented to MDOT from a federal audit done on the Highway Advertising Act. If these issues (definition for digital billboards, definition for non-conforming billboard, etc) are not address, the state will lose a portion of their federal transportation funding.  This bill was introduced last session and because of the short time frame of lame duck, didn’t pass.  This bill would allow a local unit of government to create a more stringent policy than that at the state level if they so choose to.  We also asked that the word “operation” be added into what can be regulated by the local unit of government to ensure that digital billboards would be encompassed in that definition.  Before passing committee, an amendment was also added on to change the spacing requirements for digital billboards from 1,500 feet to 1,750 feet and to make the “dwell time” 8 seconds instead of 6 seconds.

Because of the federal funding attached to the bill and the local control piece being enhanced, we are neutral on HB 4629.

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

Senate Finance Takes up WPW Fix

For years the League has been working on a tax reduction loophole that was created due to the 2002 Michigan Supreme Court case of WPW Acquisition Company v. City of Troy. After Proposal A created the term taxable value, the Legislature passed legislation that allowed for an increase and decrease of certain commercial property’s taxable value based on their occupancy. This was meant to allow the taxable value of income producing property to reflect the ebb and flow of the economy.

Under that system, the City of Troy granted a reduction to WPW Acquisition Company due to a reduced occupancy. However, when the City increased their taxable value when they were more fully occupied, WPW Acquisition Company sued the City, claiming they could not increase their taxable value above 5% or the rate of inflation, whichever is less, due to Proposal A. The Supreme Court addressed the question of increases in occupancy and agreed with WPW. However, the reduction issue due to occupancy was never in question, so a legal loophole, creating tax inequity, was born.

Yesterday the Senate Finance Committee took up Senate Bill 114, a bill introduced by Senator Vince Gregory (D-Southfield) that amends the General Property Tax Act. The Act’s definition of “losses” includes an adjustment in value, if any, due to a decrease in the property’s occupancy rate, to the extent provided by law. The definition of “additions” includes an increase in value attributable to the property’s occupancy rate if a loss had been previously allowed because of a decrease in occupancy rate, or if the value of new construction was reduced because of a below- market occupancy rate.

The bill would limit the use of occupancy rates in the determination of losses to the period before December 31, 2013. The use of occupancy rates in the determination of additions would be limited to the period before December 31, 2001.

The League testified in support of this legislation as did the Department of Treasury. Please contact your Senator and ask for support of SB 114!
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

 

League Encourages State to Put Surplus Toward Restoring Revenue Sharing Cuts

LANSING, Michigan – A report saying the state of Michigan has nearly $400 million has the Michigan Municipal League requesting that the state use some of that surplus to restore massive cuts made to local revenue sharing. A consensus report released today (May 15, 2013) by state economists shows that revenues for the current fiscal year are $396.9 million higher than expected for the general fund for the current 2012-13 fiscal year.

The Michigan Municipal League has responded to this announcement by issuing a press release to media throughout Michigan calling for a portion of that surplus to go back to Michigan communities. View the League’s press release here. View an mlive.com article about the budget surplus that includes mention of the League’s request.

Here’s a portion of the press release:
“Over the past dozen years, the Legislature and governor have cut local revenue sharing by more than $6 billion, breaking promise after promise and ignoring statutes that require the appropriations to local communities,” said Daniel Gilmartin, CEO and executive director of the Michigan Municipal League, in the press release. “Instead of appropriating the funds for local services, Lansing used the funds to fill holes in the state budget, to cut taxes, and for other state programs and services. While we recognize the state’s economy was in bad shape, and many state budgets were cut, local revenue sharing paid a far higher price than all the others.”

Gilmartin said the state budget surplus gives the Legislature and governor the opportunity to return some of the cuts they made to local services that keep people safe in their neighborhoods, keep local drinking water clean, maintain local roads and bridges, fund local parks and libraries, and more.

“The state Senate has proposed a 4.8-percent increase in local revenue sharing for the 2014 state budget. Given the anticipated state budget surplus, anything less than that is unacceptable and unconscionable,” Gilmartin said. “I promise that local leaders and their constituents will remember if the Legislature fails to invest part of the surplus to restore some of the massive cuts Lansing has made to revenue sharing and essential local services.”

Gilmartin said that using the surplus to restore cuts to revenue sharing “becomes critical” if the personal property tax (PPT) law passed by the Legislature in December is approved by Michigan voters next year.The PPT law would cut local taxes paid by local businesses to local communities across the state by hundreds of millions of dollars. The law will not take effect unless it is approved by Michigan voters in August 2014. The Legislature has not yet voted to put the question onto the ballot.

Matt Bach is director of communications for the Michigan Municipal League. He can be reached at (810) 874-1073 and mbach@mml.org.

Say Cheese! House Considers Allowing Photos in Polling Places

This afternoon the House Elections and Ethics Committee consideredHB 4477, legislation that would allow an elector to take a photo of him or herself at a polling place. The legislation is opposed by the Secretary of State, and many clerks have concern about such a policy violating voter privacy.

In addition the committee considered HB 4478, a bill that would allow an individual with a disability who uses a signature stamp to use that stamp for voting. This legislation was widely supported including by the League, the Municipal Clerks and the Secretary of State’s office.

The committee did not vote on either piece of 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

League Issues Successfully Addressed in ORV Legislation

The Michigan Municipal League has been working with Representative Bumstead on House Bill 4299 to improve local control over ORVs being used within municipalities. As a result of this work, and the willingness of Representative Bumstead to address the League’s concerns, significant changes were made to this legislation to improve local control. A County or a Township must now provide written notice to each municipality within the County in advance of adopting a resolution that allows or prohibits ORV use on their roadways. Local municipalities will now be allowed to both open and close roads located within their municipality to the use of ORVs through the adoption of an ordinance.

As a result of these changes the League officially supported this legislation in committee and looks forward to helping secure final passage. A copy of the legislation that was passed out of House Tourism Committee can be found here. (ORVs)

John LaMacchia is a Legislative Associate with the League handling transportation issues.He can be reached at jlamacchia@mml.org or 517-908-0303.

League Issues Successfully Addressed in ORV Legislation

The Michigan Municipal League has been working with Representative Bumstead on House Bill 4299 to improve local control over ORVs being used within municipalities. As a result of this work, and the willingness of Representative Bumstead to address the League’s concerns, significant changes were made to this legislation to improve local control. A County or a Township must now provide written notice to each municipality within the County in advance of adopting a resolution that allows or prohibits ORV use on their roadways. Local municipalities will now be allowed to both open and close roads located within their municipality to the use of ORVs through the adoption of an ordinance.

As a result of these changes the League officially supported this legislation in committee and looks forward to helping secure final passage. A copy of the legislation that was passed out of House Tourism Committee can be found here. (ORVs)

John LaMacchia is a Legislative Associate with the League handling transportation issues.He can be reached at jlamacchia@mml.org or 517-908-0303.

Michigan State University and East Lansing: A Close Working Partnership

By Diane Goddeeris and Lou Anna K. Simon

Mayor Goddeeris & President Simon

Few communities can match college towns for sheer vibrancy. Students contribute great energy to a place and, with a diverse group of exceptional faculty members and a rising international student population, there is an added cosmopolitan—even global dimension—to university communities such as East Lansing.

“Town–gown” tensions are always the other side of the coin, but they can be managed through close cooperation between a university and its home community. We’re proud of the working partnership we’ve formed to promote the development of citizen-scholars among the student body and integration of Michigan State University into local civic life.

Students attend Taste of East Lansing event.

At the strategic level, MSU and the City of East Lansing partner on planning and economic development activities, such as a planning exercise the university is funding focused on the corridor that forms our border. The greater objective is to examine what it will take to make this a world-class university community, which might help form the framework for the city’s upcoming comprehensive plan update.

Some of our most innovative partnerships involve creating jobs and retaining talent in the community—initiatives that helped us earn recognition as one of Entrepreneur Magazine’s “Best College Towns to Start a Business.”

The Technology Innovation Center (TIC).

East Lansing in 2008 developed the Technology Innovation Center (TIC), a downtown technology business start-up incubator, directly across from the MSU campus. Within six months, the TIC was occupied to capacity and has since served as a model for others around the country. Many businesses there stem from MSU research.

The university and city next cooperated to launch The Hatch, an adjacent student start-up business incubator. One enterprise it houses, TempoRun, is based on a mobile music/fitness application that in March won this year’s national Student Startup Madness business pitch competition at the South by Southwest Interactive Festival in Austin, Texas.

Students participate in East Lansing recycling program.

Michigan State reaffirmed its commitment to growing businesses locally by placing the MSU Innovation Center in the same commercial building housing the TIC and The Hatch. The Innovation Center is composed of MSU Technologies, the university’s technology transfer office; Business-CONNECT, its corporate and business liaison group; and Spartan Innovations, which supports faculty and student business start-ups with talent and financing. The TIC/Hatch/Spartan Innovations cluster helps bring MSU technology to the marketplace as rapidly as possible and puts university resources within closer reach of the business community.

In tough budget times, the university and city naturally look for ways to share resources to maintain high-quality services. Campus and city police do joint training, for example, and recently partnered to form an emergency Special Response Team. East Lansing operates our jointly owned wastewater treatment system and recently began providing water service to a portion of campus.

Students walk outside of the new Broad Art Museum.

What could become the most iconic symbol of campus and community integration opened just last November. Michigan State’s stunning Eli and Edythe Broad Art Museum was intentionally sited at the campus/city boundary along busy Grand River Avenue and designed to welcome visitors from both the campus and the city. The city embraced the new museum, providing signage, promotion, and activities to supplement the museum’s programming.

Students patron at businesses in downtown East Lansing.

Now we’re both actively engaged to recruit new businesses to complement the museum and add cultural vibrancy to the community.

To mitigate the inevitable conflicts arising between students and permanent residents, the city and university formed the Community Relations Coalition (CRC) to engage students residing off campus and local residents in programs designed to promote mutual consideration.

The CRC, which sponsors activities such as neighborhood cleanups and community conversations, was honored with the East Lansing Crystal Award for outstanding voluntary service to the community in 2011.

Ice cream social event in East Lansing.

We work to get students and East Lansing residents on the same page—literally—right from the start of the school year with our One Book One Community reading program.

Students also are engaged with the community during Fall Welcome with special shopping promotions and opportunities to support local charities. Another MSU–city event worth note is the annual East Lansing Welcomes the World program, which is a great example of our community and international students coming together.

Community service is a value Michigan State strongly encourages. Registrations at the MSU Center for Service-Learning and Civic Engagement, the nation’s oldest center of its kind, more than tripled in the last decade.

Signage helps link MSU and East Lansing.

Some 18,900 student registrations for volunteer service were recorded there in 2011–12. Students are volunteering at hospitals, youth organizations, and many nonprofits in Lansing and East Lansing. More than a thousand students were placed in area schools in the fall 2012 semester to work as tutors, classroom assistants, reading and recreation group supervisors, and more.

Michigan State’s 158-year heritage as the nation’s pioneer land-grant university means that community and stakeholder engagement—in East Lansing and indeed across Michigan—shares primacy with education and research imperatives.

East Lansing has grown up with the university, forming its own school district in 1900 and incorporating as a city in 1907. It now includes more than 25 neighborhoods with a number of active neighborhood associations and, with the university, produces popular summer art and folk festivals.

Diane Goddeeris is the Mayor of East Lansing and Lou Anna K. Simon is the President of Michigan State University.