2008 Senate Bill 1076 ↩

House Roll Call 145: Passed

To revise the definition of "eligible obligations" in the law authorizing downtown development authorities (DDAs), to include certain obligations incurred by the Ionia DDA. The bill would allow this DDA to restructure its debt after a Tax Tribunal ruling on Meridian Corporation led to a reduction in the DDA's revenue. This affects tax increment financing (TIF) used by DDAs, which allows them to capture increased local property tax revenue, but not school tax revenue, that results from their financing of certain improvement projects. Due to provisions of Proposal A starting in 1994, the use of school tax revenue in a TIF scheme is not permitted without an exemption.