Tax Increment Financing
New legislation has taken effect which creates reporting requirements for tax increment finance authorities in Michigan. The legislation combines most tax increment finance authorities in Public Act 57 of 2018, requires certain information be made available publicly and sets requirements for information that must be reported to the Michigan Department of Treasury. The seven original TIF statutes, as amended, which have been combined in Chapters 2-8 of PA 57 have all been repealed. The notable exception is Brownfield Redevelopment Finance Authorities (BRFAs), which continue to be subject to 1996 PA 381. PA 57 has no effect on BRFAs.
New requirements include:
- Public Reporting Requirements: In Section 910, the new act describes the requirement that an authority create a website or use a municipal website for the posting of the information listed in this section including budgets, audits, adopted plans, and other information.
- Treasury Reporting Requirements: Section 911 of the new act describes annual reporting requirement to Treasury and the subsequent requirement that Treasury compile the information into a report which is to be submitted annually to the Michigan Legislature.
- TIF District PA 57 Annual Financial Report Form
The new reporting requirements can be accessed at the following link: PA 57 of 2018 Section 9
The timeline below is provided to assist with planning for the necessary filings. Please note the first filing is due 180 days after a TIF’s fiscal year ending after January 1, 2019. This means the earliest a report would be due is July 2019 for TIFs whose fiscal year ends in January 2019.
For questions, contact Travis Bukovcik at Bukovcikt@michigan.gov or 517-335-2532
Please forward any documents to Treas-StateSharePropTaxes@michigan.gov
Dates Instructions January 1, 2019 2018 PA 57 takes effect. The following acts are repealed: 1867 PA 35; 1975 PA 197; 1980 PA 450; 1986 PA 281; 2004 PA 530; 2005 PA 280; 2007 PA 61; 2008 PA 94; 2010 PA 250. (Enacting Sections 1 and 2) Sections cited herein are from PA 57 unless otherwise noted. March 1, 2019
(Sec. 911 (5))
Department of Treasury must publish form to be used for reporting by authorities
April 1, 2019 Deadline for authorities to provide a copy, or a hyperlink to a copy, of the currently adopted TIF plan (or development plan/TIF plan, if a combined single document) to the Department of Treasury (Section 912). 180 days after authority FY19 ends (Sec. 910 (3))
Post on a municipal or authority website, (or if not on a website, maintained in a physical location within the municipality that is open to the public—Sec. 910 (5)) all items listed in Sec. 910 (1). Starting with FY19, each year’s data will be added through FY23 and beyond until the most recent five years’ data is available to view.
180 days after authority FY19 ends Sec. 911 (2) and 1968 PA 2 Sec. 4 (3))
Submit to the Department of Treasury, the governing body of the municipality, and the governing body of a taxing unit whose taxes are captured by the authority a report including all items listed in Sec. 911 (1).
Semi-annually beginning January 1, 2019 Sec. 910 (4)
Authorities must hold two “informational meetings.” Informational meetings are meetings for the purpose of informing the public of the goals and direction of the authority, including projects to be undertaken in the coming year. They are not for the purpose of voting on policy, budgets or other operational matters.