Weekly Legislative Reports

November 20, 2009 pdf

SPECIAL RULES FOR PILT BILLS

Any township that has state lands subject to Payment-In-Lieu-of-Taxes (PILT) payments must submit their bills to the Department of Treasury at the time winter tax bills are sent out. However, there are several issues that assessors and treasurers need to be aware of when creating this bill. Beginning this year, the freeze on the value of PILT lands is removed. This means that the value of the property may increase by the rate of inflation (4.4 percent) just like all other property. The issue of what millage rates to use is much more complicated. The statute specifies that the state will not pay any millage in excess of the amount levied in 2004. For example, if the community voted in the past year to levy a new tax for library services, that millage is not included on the PILT bills because it did not exist in 2004. If the community increased the fire millage after 2004, any millage rate in excess of the rate charged in 2004 may not be included on the PILT bill. If millage rates for fire service were reduced in 2005 and 2006 due to Headlee rollbacks and then the millage was increased in 2007, the township may bill at the 2004 level. If Headlee rollbacks have occurred or millages have expired since 2004, the township may only bill at the lower authorized rate, not the higher 2004 rate. Special assessments and administrative fees are not to be included on any PILT bills. All PILT parcels within any given township are to be combined into a single bill that is sent to the Department of Treasury, PILT Program, P.O. Box 30722, Lansing MI 48909. The Legislature reduced the appropriation for PILT payments by 20 percent for this year. At this point it is assumed by MTA that the payment to every township will be reduced by this percentage. Those details will be resolved in the future. Questions can be e-mailed to TreasuryPILT@Michigan.gov.

LEGISLATION WOULD DIVERT LOCAL LAW ENFORCEMENT MONEY TO THE STATE

Two bills were introduced last week that would divert funding for local law enforcement programs back into the state coffers. HB 5599 was introduced by Rep. George Cushingberry (D-Detroit). The legislation will divert $5 million per year for three years from the 9-1-1 tax that funds local    9-1-1 operations and send the money instead to the state to fund the Michigan Public Safety Communications System. The second bill of concern was introduced by Rep. Richard LaBlanc (D-Westland). HB 5602 amends the drug forfeiture laws and requires 10 percent of all proceeds from property seized during drug arrests be sent to the state to fund the state forensics labs. Currently, this money is awarded to the governmental unit that employed the arresting officer or split between multiple units when joint investigations occurred. The bills were introduced to try and fill the holes in the state budget. However, given all of the discussion regarding making public safety a top priority of the state, why would the state raid the funding of local law enforcement programs to fund state level programs?

REPRESENTATIVE BOLGER INTRODUCES NOXIOUS WEED LEGISLATION

Earlier this month, Rep. Jase Bolger (R-Marshall) introduced legislation to fix a flaw in state statute to allow all townships the ability to regulate noxious weeds in their communities. HB 5573 would delete the current population threshold of more than 5,000 in order for townships to enact an ordinance for the purpose of controlling and eradicating noxious weeds in a subdivision. This would apply if the owner has failed to do so after proper notice. The bill has been assigned to the House Committee on Intergovernmental and Regional Affairs for consideration.  MTA wishes to thank Rep. Bolger for introducing this legislation and will assist in moving the bill forward as several smaller townships have expressed the need for the statute change.

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