Michigan Library TIF Legislation

Earlier this month, a package of bills was signed into law that would phase out the capture of tax increment revenues generated by library millages by downtown development authorities, tax increment finance authorities, local development finance authorities, and corridor improvement authorities. These bills took immediate effect on January 9, 2017, and must be considered in evaluating tax increment capture for these entities going forward. The law excludes all new millages for public library purposes approved by the voters after December 31, 2016, from the definition of tax increment revenues, thus automatically excluding them from capture. Millages (voted and nonvoted) levied before January 1, 2017, may also be exempted if the authority no longer has outstanding obligations that need to be paid or if the authority amends the boundaries of its district or amends its tax increment finance plan to extend the plan's duration. The legislation, however, contains problematic