2004 Senate Bill 1105 / Public Act 513

Revise PILT payments to local governments

Introduced in the Senate

March 18, 2004

Introduced by Sen. Shirley Johnson (R-13)

To freeze the valuation of state lands at the value set in 2003 or earlier for purposes of setting the amount of payments in lieu of property taxes (PILT) to local governments on land owned by the state. Also, locals could not impose penalties if the payments are late.

Referred to the Committee on Appropriations

Sept. 9, 2004

Reported without amendment

With the recommendation that the substitute (S-4) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises the funding source for PILT payments, revises details of when and how the payments are made, and allows partial payments if the insufficient funds have been appropriated for the payments, with the shortfall pro-rated among recipients.

The substitute passed by voice vote

Passed in the Senate 33 to 1 (details)

To revise the funding source for payments in lieu of property taxes (PILT) to local governments on land owned by the state, to freeze the level of those payments for the next 10 years, and to allow partial payments if the insufficient funds have been appropriated for the payments, with the shortfall pro-rated among recipients. Locals could not impose penalties if the payments are late.

Received in the House

Sept. 9, 2004

Referred to the Committee on Appropriations

Sept. 15, 2004

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Sept. 22, 2004

Substitute offered

To replace the previous version of the bill with one that freezes the PILT payments for the next three years, and then adjusts them for inflation every three years. It also allows local governments to undertake forfeiture and foreclosure actions on state land on which the full PILT payments have not been made.

The substitute passed by voice vote

Amendment offered by Rep. Sandy Caul (R-99)

To remove a provision prohibiting PILT payments to local governments if the total payment is less than the $250 threshold set by the House. The Senate version set this threshold level at $500.

The amendment passed by voice vote

Passed in the House 82 to 24 (details)

To revise the funding source for payments in lieu of property taxes (PILT) to local governments on land owned by the state, and to freeze the level of those payments for the next three years. Payments would then be adjusted for inflation every three years. The bill also allows the state to make partial payments if the insufficient funds have been appropriated for the payments, with the shortfall pro-rated among recipients; and allows local governments to forclose on state land on which full PILT payments have not been made. However, locals could not impose penalties if the payments are late.

Received in the Senate

Sept. 23, 2004

Sept. 28, 2004

Failed in the Senate 0 to 37 (details)

To concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received in the House

Sept. 29, 2004

Received in the Senate

Sept. 30, 2004

Dec. 7, 2004

Passed in the Senate 21 to 16 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee. This would freeze the amount of payments in lieu of property taxes (PILT) to local governments on land owned by the state for five years, and then they will increase from year to year at the rate of inflation.

In the House

Dec. 8, 2004

Passed in the House 84 to 25 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2004