SB 199 — Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).

SB-199, As Passed Senate, November 13, 2025 SENATE BILL NO.

Evidence of the intent to repay an advance is required and may include, includes, but is not limited to, an executed agreement to repay, provisions contained in a tax increment financing plan DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 approved before the advance or before August 14, 1993, or a resolution of the authority or the municipality.

(i) "Development area citizens council" or "council" means DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 that advisory body established pursuant to under section 20.320.

DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 (iii) For taxes levied after June 30, 2006 and before July 1, 2007, $3,000,000.00.

Property exempt from taxation at the time of the determination of DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 when the initial assessed value shall is determined must be included as zero.

(v) A letter of credit, paying agent, transfer agent, bond DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 registrar, or trustee fee associated with a contract, agreement, bond, or note.

(ii) An obligation issued or incurred by an authority or by a municipality on behalf of an authority after August 19, 1993, but DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 before December 31, 1994, to finance a project described in a tax increment finance plan approved by the municipality in accordance with this part before December 31, 1993, for which a contract for final design is entered into by the municipality or authority before March 1, 1994.

(vi) An obligation issued or incurred by a municipality under a contract executed on December 19, 1994 as subsequently amended between the municipality and the authority to implement a project described in a tax increment finance plan approved by the DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 municipality under this part before August 19, 1993 for which a contract for final design was entered into by the municipality before March 1, 1994 provided that if final payment by the municipality is made on or before December 31, 2001.

The duration of the DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 development plan and tax increment financing plan described in this subparagraph is extended to 1 year after the final date that the extended cash rental payments are due.

(i) A street, plaza, or pedestrian mall, and any improvements to a street, plaza, boulevard, alley, or pedestrian mall, including street furniture and beautification, a park, parking facility, DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 recreation facility, playground, school, library, public institution or administration building, right-of-way, structure, waterway, bridge, lake, pond, canal, utility line or pipeline, transit-oriented development, transit-oriented facility, and other similar facilities and necessary easements of these facilities designed and dedicated to use by the public generally or used by a public agency.

(A) The net present value of the principal and interest to be DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 paid on the refunding obligation, including the cost of issuance, will be less than the net present value of the principal and interest to be paid on the obligation being refunded, as calculated using a method approved by the department of treasury.

DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 (w) "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181 to 211.182.

DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 (ii) Tax increment revenues include ad valorem property taxes and specific local taxes attributable to the application of the levy of the this state pursuant to under the state education tax act, 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate school districts upon on the captured assessed value of real and personal property in the development area in an amount equal to the amount necessary, without regard to subparagraph (i), to repay eligible advances, eligible obligations, and other protected obligations.

DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 1 (D) (III) Except as otherwise provided in section 303(6), ad valorem property taxes or specific local taxes attributable to those ad valorem property taxes levied for a separate millage for public library purposes approved by the electors after December 31, 2016.

(bb) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the DDM S01061'25_SB0199_INTR_1S01061'25_SB199_APS_1 3178ih5xa2m1 municipality in which it is located.

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