HOUSE BILL No. 6049


     September 28, 2000, Introduced by Reps. Gosselin and DeVuyst and referred to the Committee on Appropriations.


        A bill to amend 1971 PA 140, entitled

   "Glenn Steil state revenue sharing act of 1971,"

   by amending sections 11 and 13 (MCL 141.911 and 141.913), as

   amended by 1998 PA 532.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 11.  (1) For state fiscal years before the 1996-1997

 2
      state fiscal year, the department of management and budget shall

 3
      cause to be paid during each August, November, February, and May,

 4
      to counties on a per capita basis the collections from the state

 5
      income tax as certified by the department of treasury for the

 6
      quarter periods ending the prior June 30, September 30, December

 7
      31, and March 31 that are available for distribution to and

 8
      retention by counties.

 9
           (2) For state fiscal years beginning after September 30,

10
      1992 and ending before October 1, 1996, the collections from the


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 1
      state income tax otherwise available for distribution to counties

 2
      in November for the quarter period ending the prior September 30

 3
      shall be increased by $35,900,000.00 and the collections from the

 4
      state income tax otherwise available for distribution to counties

 5
      in August for the quarter period ending the prior June 30 shall

 6
      be decreased by $35,900,000.00.

 7
           (3) For the 1996-1997 and 1997-1998 state fiscal years, the

 8
      department of treasury shall cause to be paid to counties on a

 9
      per capita basis an amount equal to 24.5% of the difference

10
      between 21.3% of the sales tax collections at a rate of 4% in the

11
      12-month period ending June 30 of the state fiscal year in which

12
      the payments are made and the total distribution for the state

13
      fiscal year under section 12a.  Subject to section 13d, for the

14
      1998-1999  through 2005-2006  AND 1999-2000 state fiscal years,

15
       and for the period of October 1, 2006 through June 30, 2007, 

16
      the department of treasury shall cause to be paid to counties

17
      both of the following:

18
           (a) An amount equal to the amount the county was eligible to

19
      receive under section 12a in the 1997-1998 state fiscal year.

20
           (b) An amount equal to 25.06% of 21.3% of the sales tax col-

21
      lections at a rate of 4% in the 12-month period ending June 30 of

22
      the state fiscal year in which the payments are made minus the

23
      amount determined under subdivision (a), which REMAINDER shall be

24
      distributed on a per capita basis.  If the amount appropriated

25
      under this section to counties is less than 25.06% of 21.3% of

26
      the sales tax rate of 4%, any reduction made necessary by this





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 1
      appropriation in distributions to counties shall first be applied

 2
      to the distribution under this subdivision.

 3
           (4)  After June 30, 2007, 25.06% of 21.3% of the sales tax

 4
      collections at a rate of 4% shall be distributed to counties as

 5
      provided by law.  FOR STATE FISCAL YEARS BEGINNING AFTER

 6
      SEPTEMBER 30, 2000, AN AMOUNT EQUAL TO 25.06% OF 21.3% OF THE

 7
      SALES TAX COLLECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD

 8
      ENDING JUNE 30 OF THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE

 9
      MADE SHALL BE DISTRIBUTED TO COUNTIES ON A PER CAPITA BASIS.

10
           (5) The payments under  subsection (3)  SUBSECTIONS (3) AND

11
      (4) shall be made from revenues collected during the state fiscal

12
      year in which the payments are made and shall be made during each

13
      October, December, February, April, June, and August.  Payments

14
      shall be based on collections from the sales tax at a rate of 4%

15
      in the 2-month period ending the prior August 31, October 31,

16
      December 31, February 28, April 30, and June 30, and for the

17
      1996-1997 and 1997-1998 state fiscal years only the payments

18
      shall be reduced by 1/6 of the total distribution for the state

19
      fiscal year under section 12a.  For state fiscal years after the

20
      1995-1996 state fiscal year, the collections from the sales tax

21
      otherwise available for distribution to counties under

22
       subsection (3)  SUBSECTIONS (3) AND (4) in December shall be

23
      increased by $17,000,000.00 and the collections from the sales

24
      tax otherwise available for distribution to counties under

25
       subsection (3)  SUBSECTIONS (3) AND (4)  in April shall be

26
      decreased by $17,000,000.00.





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 1
           Sec. 13.  (1) This subsection and subsection (2) apply to

 2
      distributions to cities, villages, and townships during the state

 3
      fiscal years before the 1996-1997 state fiscal year of collec-

 4
      tions from the state income tax and single business tax.  Except

 5
      as otherwise provided in subsection (2), the department of trea-

 6
      sury shall cause to be paid to each city, village, and township

 7
      its share, computed in accordance with the tax effort formula, of

 8
      the following revenues:

 9
           (a) During each August, November, February, and May, the

10
      collections from the state income tax for the quarter periods

11
      ending the prior June 30, September 30, December 31, and March 31

12
      that are available for distribution to cities, villages, and

13
      townships under the income tax act of 1967, 1967 PA 281,

14
      MCL 206.1 to 206.532.

15
           (b) The amount of the collections from the single business

16
      tax available for distribution to cities, villages, and townships

17
      under former section 136 of the single business tax act, 1975

18
      PA 228.

19
           (2) The amount of collections of the state income tax other-

20
      wise available for distribution to cities, villages, and town-

21
      ships in November, February, and May, computed in accordance with

22
      the tax effort formula, shall be increased by $22,600,000.00.

23
      The amount of collections otherwise available for distribution to

24
      cities, villages, and townships in August, computed in accordance

25
      with the tax effort formula, shall be decreased by

26
      $67,800,000.00.





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 1
           (3) This subsection applies to distributions to cities,

 2
      villages, and townships for the 1996-1997 state fiscal year.  The

 3
      department shall cause to be paid in accordance with the tax

 4
      effort formula an amount equal to 75.5% of the difference between

 5
      21.3% of the sales tax collections at a rate of 4% in the

 6
      12-month period ending June 30 of the state fiscal year in which

 7
      the payments are made and the total distribution for the state

 8
      fiscal year under section 12a.

 9
           (4) The department of treasury shall cause to be paid during

10
      the 1997-1998 state fiscal year an amount equal to 75.5% of the

11
      difference between 21.3% of the sales tax collections at a rate

12
      of 4% in the 12-month period ending June 30 of the state fiscal

13
      year in which the payments are made and the total distribution

14
      for the state fiscal year under section 12a, both of the

15
      following:

16
           (a) To each city, village, and township, the amount of col-

17
      lections distributed under subsection (3) to cities, villages,

18
      and townships for the 1996-1997 state fiscal year or its pro rata

19
      share of the collections if the collections are less than the

20
      amount of collections distributed under subsection (3) for the

21
      1996-1997 state fiscal year.  A city's, village's, or township's

22
      share of revenues under this subdivision shall be computed using

23
      the tax effort formula.

24
           (b) To each city, village, and township its share of the

25
      collections to the extent the total collections available for

26
      distribution under this subsection exceed the amount distributed

27
      to cities, villages, and townships under subdivision (a) for the



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 1
      fiscal year.  A city's, village's, or township's share of

 2
      revenues under this subdivision shall be computed on a per capita

 3
      basis.

 4
           (5) Subject to section 13d, for the 1998-1999  through

 5
      2005-2006 state fiscal years and for the period of October 1,

 6
      2006 through June 30, 2007  AND 1999-2000 STATE FISCAL YEARS, the

 7
      department of treasury shall cause distributions determined under

 8
      subsections (6) to  (13)  (16) to be paid to each city, village,

 9
      and township from an amount equal to 74.94% of 21.3% of the sales

10
      tax collections at a rate of 4% in the 12-month period ending

11
      June 30 of the state fiscal year in which the payments are made.

12
       After June 30, 2007, 74.94% of 21.3% of sales tax collections at

13
      a rate of 4% shall be distributed to cities, villages, and town-

14
      ships as provided by law. 

15
           (6) Subject to section 13d, for the 1998-1999  through

16
      2005-2006 state fiscal years and for the period of October 1,

17
      2006 through June 30, 2007  AND 1999-2000 STATE FISCAL YEARS and

18
      except as provided in subsection (15), the department of treasury

19
      shall cause to be paid $333,900,000.00 to a city with a popula-

20
      tion of 750,000 or more as the total combined distribution under

21
      this act and section 10 of article IX of the state constitution

22
      of 1963 as annualized for any period of less than 12 months to

23
      that city.

24
           (7) Distributions under subsections (8) to (13) to cities,

25
      villages, and townships with populations of less than 750,000

26
      shall be made from the amount available for distribution under





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 1
      this section that remains after the distribution under subsection

 2
      (6) is made.

 3
           (8) Subject to section 13d, for the 1998-1999  through

 4
      2005-2006 state fiscal years and for the period of October 1,

 5
      2006 through June 30, 2007  AND 1999-2000 STATE FISCAL YEARS, for

 6
      cities, villages, and townships with populations of less than

 7
      750,000, subject to the limitations under this section, a taxable

 8
      value payment shall be made to each city, village, and township

 9
      determined as follows:

10
           (a) Determine the per capita taxable value for each city,

11
      village, and township by dividing the taxable value of that city,

12
      village, or township by the population of that city, village, or

13
      township.

14
           (b) Determine the statewide per capita taxable value by

15
      dividing the total taxable value of all cities, villages, and

16
      townships by the total population of all cities, villages, and

17
      townships.

18
           (c) Determine the per capita taxable value ratio for each

19
      city, village, and township by dividing the statewide per capita

20
      taxable value by the per capita taxable value for that city, vil-

21
      lage, or township.

22
           (d) Determine the adjusted taxable value population for each

23
      city, village, and township by multiplying the per capita taxable

24
      value ratio as determined under subdivision (c) for that city,

25
      village, or township by the population of that city, village, or

26
      township.





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 1
           (e) Determine the total statewide adjusted taxable value

 2
      population which is the sum of all adjusted taxable value

 3
      population for all cities, villages, and townships.

 4
           (f) Determine the taxable value payment rate by dividing

 5
      74.94% of 21.3% of the sales tax collections at a rate of 4% in

 6
      the 12-month period ending June 30 of the state fiscal year in

 7
      which the payments under this subsection are made by 3, and

 8
      dividing that result by the total statewide adjusted taxable

 9
      value population as determined under subdivision (e).

10
           (g) Determine the taxable value payment for each city, vil-

11
      lage, and township by multiplying the result under

12
      subdivision (f) by the adjusted taxable value population for that

13
      city, village, or township.

14
           (9) Subject to section 13d, for the 1998-1999  through

15
      2005-2006 state fiscal years and for the period of October 1,

16
      2006 through June 30, 2007  AND 1999-2000 STATE FISCAL YEARS,

17
      subject to the limitations under this section and except as pro-

18
      vided in subsection (14), a unit type population payment shall be

19
      made to each city, village, and township with a population of

20
      less than 750,000 determined as follows:

21
           (a) Determine the unit type population weight factor for

22
      each city, village, and township as follows:

23
           (i) For a township with a population of 5,000 or less, the

24
      unit type population weight factor is 1.0.

25
           (ii) For a township with a population of more than 5,000 but

26
      less than 10,001, the unit type population weight factor is 1.2.





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 1
           (iii) For a township with a population of more than 10,000

 2
      but less than 20,001, the unit type population weight factor is

 3
      1.44.

 4
           (iv) For a township with a population of more than 20,000

 5
      but less than 40,001, the unit type population weight factor is

 6
      1.73.

 7
           (v) For a township with a population of more than 40,000 but

 8
      less than 80,001, the unit type population weight factor is

 9
      2.07.

10
           (vi) For a township with a population of more than 80,000,

11
      the unit type population weight factor is 2.49.

12
           (vii) For a village with a population of 5,000 or less, the

13
      unit type population weight factor is 1.5.

14
           (viii) For a village with a population of more than 5,000

15
      but less than 10,001, the unit type population weight factor is

16
      1.8.

17
           (ix) For a village with a population of more than 10,000,

18
      the unit type population weight factor is 2.16.

19
           (x) For a city with a population of 5,000 or less, the unit

20
      type population weight factor is 2.5.

21
           (xi) For a city with a population of more than 5,000 but

22
      less than 10,001, the unit type population weight factor is 3.0.

23
           (xii) For a city with a population of more than 10,000 but

24
      less than 20,001, the unit type population weight factor is 3.6.

25
           (xiii) For a city with a population of more than 20,000 but

26
      less than 40,001, the unit type population weight factor is

27
      4.32.



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           (xiv) For a city with a population of more than 40,000 but

 2
      less than 80,001, the unit type population weight factor is

 3
      5.18.

 4
           (xv) For a city with a population of more than 80,000 but

 5
      less than 160,001, the unit type population weight factor is

 6
      6.22.

 7
           (xvi) For a city with a population of more than 160,000 but

 8
      less than 320,001, the unit type population weight factor is

 9
      7.46.

10
           (xvii) For a city with a population of more than 320,000 but

11
      less than 640,001, the unit type population weight factor is

12
      8.96.

13
           (xviii) For a city with a population of more than 640,000,

14
      the unit type population weight factor is 10.75.

15
           (b) Determine the adjusted unit type population for each

16
      city, village, and township by multiplying the unit type popula-

17
      tion weight factor for that city, village, or township as deter-

18
      mined under subdivision (a) by the population of the city, vil-

19
      lage, or township.

20
           (c) Determine the total statewide adjusted unit type popula-

21
      tion, which is the sum of the adjusted unit type population for

22
      all cities, villages, and townships.

23
           (d) Determine the unit type population payment rate by

24
      dividing 74.94% of 21.3% of the sales tax collections at a rate

25
      of 4% in the 12-month period ending June 30 of the state fiscal

26
      year in which the payments under this subsection are made by 3,





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 1
      and then dividing that result by the total statewide adjusted

 2
      unit type population as determined under subdivision (c).

 3
           (e) Determine the unit type population payment for each

 4
      city, village, and township by multiplying the result under sub-

 5
      division (d) by the adjusted unit type population for that city,

 6
      village, or township.

 7
           (10) Subject to section 13d, for the 1998-1999  through

 8
      2005-2006 state fiscal years and for the period of October 1,

 9
      2006 through June 30, 2007  AND 1999-2000 STATE FISCAL YEARS,

10
      subject to the limitations under this section, a yield equaliza-

11
      tion payment shall be made to each city, village, and township

12
      with a population of less than 750,000 sufficient to provide the

13
      guaranteed tax base for a local tax effort not to exceed 0.02.

14
      The payment shall be determined as follows:

15
           (a) The guaranteed tax base is the maximum combined state

16
      and local per capita taxable value that can be guaranteed in a

17
      state fiscal year to each city, village, and township for a local

18
      tax effort not to exceed 0.02 if an amount equal to 74.94% of

19
      21.3% of the state sales tax at a rate of 4% is distributed to

20
      cities, villages, and townships whose per capita taxable value is

21
      below the guaranteed tax base.

22
           (b) The full yield equalization payment to each city, vil-

23
      lage, and township is the product of the amounts determined under

24
      subparagraphs (i) and (ii):

25
           (i) An amount greater than zero that is equal to the differ-

26
      ence between the guaranteed tax base determined in





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      subdivision (a) and the per capita taxable value of the city,

 2
      village, or township.

 3
           (ii) The local tax effort of the city, village, or township,

 4
      not to exceed 0.02, multiplied by the population of that city,

 5
      village, or township.

 6
           (c) The yield equalization payment is the full yield equali-

 7
      zation payment divided by 3.

 8
           (11) For THE 1998-1999 AND 1999-2000 state fiscal years,

 9
       after the 1997-1998 state fiscal year,  distributions under this

10
      section for cities, villages, and townships with populations of

11
      less than 750,000 shall be determined as follows:

12
           (a) For the 1998-1999 state fiscal year, the payment under

13
      this section for each city, village, and township shall be the

14
      sum of the following:

15
           (i) Ninety percent of the total amount available for distri-

16
      bution under subsections (8), (9), and (10) for the 1998-1999

17
      state fiscal year multiplied by the city's, village's, or

18
      township's percentage share of the distributions under this sec-

19
      tion and section 12a minus the amount of a distribution under

20
      this section and section 12a to a city that is eligible to

21
      receive a distribution under subsection (6) in the 1997-1998

22
      state fiscal year.

23
           (ii) Ten percent of the total amount available for distribu-

24
      tion under subsections (8), (9), and (10) for the 1998-1999 state

25
      fiscal year multiplied by the percentage share of the distribu-

26
      tion amounts calculated under subsections (8), (9), and (10).





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           (b) For the 1999-2000 state fiscal year, the payment under

 2
      this section for each city, village, and township shall be the

 3
      sum of the following:

 4
           (i) Eighty percent of the total amount available for distri-

 5
      bution under subsections (8), (9), and (10) for the 1999-2000

 6
      state fiscal year multiplied by the city's, village's, or

 7
      township's percentage share of the distributions under this sec-

 8
      tion and section 12a minus the amount of a distribution under

 9
      this section and section 12a to a city that is eligible to

10
      receive a distribution under subsection (6) in the 1997-1998

11
      state fiscal year.

12
           (ii) Twenty percent of the total amount available for dis-

13
      tribution under subsections (8), (9), and (10) for the 1999-2000

14
      state fiscal year multiplied by the city's, village's, or

15
      township's percentage share of the distribution amounts calcu-

16
      lated under subsections (8), (9), and (10).

17
            (c) For the 2000-2001 state fiscal year, the payment under

18
      this section for each city, village, and township shall be the

19
      sum of the following:

20
           (i) Seventy percent of the total amount available for dis-

21
      tribution under subsections (8), (9), and (10) for the 2000-2001

22
      state fiscal year multiplied by the city's, village's, or

23
      township's percentage share of the distributions under this sec-

24
      tion and section 12a minus the amount of a distribution under

25
      this section and section 12a to a city that is eligible to

26
      receive a distribution under subsection (6) in the 1997-1998

27
      state fiscal year.



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           (ii) Thirty percent of the total amount available for

 2
      distribution under subsections (8), (9), and (10) for the

 3
      2000-2001 state fiscal year multiplied by the percentage share of

 4
      the distribution amounts calculated under subsections (8), (9),

 5
      and (10).

 6
           (d) For the 2001-2002 state fiscal year, the payment under

 7
      this section for each city, village, and township shall be the

 8
      sum of the following:

 9
           (i) Sixty percent of the total amount available for distri-

10
      bution under subsections (8), (9), and (10) for the 2001-2002

11
      state fiscal year multiplied by the city's, village's, or

12
      township's percentage share of the distributions under this sec-

13
      tion and section 12a minus the amount of a distribution under

14
      this section and section 12a to a city that is eligible to

15
      receive a distribution under subsection (6) in the 1997-1998

16
      state fiscal year.

17
           (ii) Forty percent of the total amount available for distri-

18
      bution under subsections (8), (9), and (10) for the 2001-2002

19
      state fiscal year multiplied by the percentage share of the dis-

20
      tribution amounts calculated under subsections (8), (9), and

21
      (10).

22
           (e) For the 2002-2003 state fiscal year, the payment under

23
      this section for each city, village, and township shall be the

24
      sum of the following:

25
           (i) Fifty percent of the total amount available for distri-

26
      bution under subsections (8), (9), and (10) for the 2002-2003

27
      state fiscal year multiplied by the city's, village's, or



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 1
      township's percentage share of the distributions under this

 2
      section and section 12a minus the amount of a distribution under

 3
      this section and section 12a to a city that is eligible to

 4
      receive a distribution under subsection (6) in the 1997-1998

 5
      state fiscal year.

 6
           (ii) Fifty percent of the total amount available for distri-

 7
      bution under subsections (8), (9), and (10) for the 2002-2003

 8
      state fiscal year multiplied by the percentage share of the dis-

 9
      tribution amounts calculated under subsections (8), (9), and

10
      (10).

11
           (f) For the 2003-2004 state fiscal year, the payment under

12
      this section for each city, village, and township shall be the

13
      sum of the following:

14
           (i) Forty percent of the total amount available for distri-

15
      bution under subsections (8), (9), and (10) for the 2003-2004

16
      state fiscal year multiplied by the city's, village's, or

17
      township's percentage share of the distributions under this sec-

18
      tion and section 12a minus the amount of a distribution under

19
      this section and section 12a to a city that is eligible to

20
      receive a distribution under subsection (6) in the 1997-1998

21
      state fiscal year.

22
           (ii) Sixty percent of the total amount available for distri-

23
      bution under subsections (8), (9), and (10) for the 2003-2004

24
      state fiscal year multiplied by the percentage share of the dis-

25
      tribution amounts calculated under subsections (8), (9), and

26
      (10).





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 1
           (g) For the 2004-2005 state fiscal year, the payment under

 2
      this section for each city, village, and township shall be the

 3
      sum of the following:

 4
           (i) Thirty percent of the total amount available for distri-

 5
      bution under subsections (8), (9), and (10) for the 2004-2005

 6
      state fiscal year multiplied by the city's, village's, or

 7
      township's percentage share of the distributions under this sec-

 8
      tion and section 12a minus the amount of a distribution under

 9
      this section and section 12a to a city that is eligible to

10
      receive a distribution under subsection (6) in the 1997-1998

11
      state fiscal year.

12
           (ii) Seventy percent of the total amount available for dis-

13
      tribution under subsections (8), (9), and (10) for the 2004-2005

14
      state fiscal year multiplied by the percentage share of the dis-

15
      tribution amounts calculated under subsections (8), (9), and

16
      (10).

17
           (h) For the 2005-2006 state fiscal year, the payment under

18
      this section for each city, village, and township shall be the

19
      sum of the following:

20
           (i) Twenty percent of the total amount available for distri-

21
      bution under subsections (8), (9), and (10) for the 2005-2006

22
      state fiscal year multiplied by the city's, village's, or

23
      township's percentage share of the distributions under this sec-

24
      tion and section 12a minus the amount of a distribution under

25
      this section and section 12a to a city that is eligible to

26
      receive a distribution under subsection (6) in the 1997-1998

27
      state fiscal year.



   07104'00
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 1
           (ii) Eighty percent of the total amount available for

 2
      distribution under subsections (8), (9), and (10) for the

 3
      2005-2006 state fiscal year multiplied by the percentage share of

 4
      the distribution amounts calculated under subsections (8), (9),

 5
      and (10).

 6
           (i) For the period of October 1, 2006 through June 30, 2007,

 7
      the payment under this section for each city, village, and town-

 8
      ship shall be the sum of the following:

 9
           (i) Ten percent of the total amount available for distribu-

10
      tion under subsections (8), (9), and (10) for the 2006-2007 state

11
      fiscal year multiplied by the city's, village's, or township's

12
      percentage share of the distributions under this section and sec-

13
      tion 12a minus the amount of a distribution under this section

14
      and section 12a to a city that is eligible to receive a distribu-

15
      tion under subsection (6) in the 1997-1998 state fiscal year.

16
           (ii) Ninety percent of the total amount available for dis-

17
      tribution under subsections (8), (9), and (10) for the 2006-2007

18
      state fiscal year multiplied by the percentage share of the dis-

19
      tribution amounts calculated under subsections (8), (9), and

20
      (10). 

21
           (12) Except as otherwise provided in this subsection, FOR

22
      STATE FISCAL YEARS BEFORE THE 2000-2001 STATE FISCAL YEAR, the

23
      total payment to any city, village, or township under this act

24
      and section 10 of article IX of the state constitution of 1963

25
      shall not increase by more than 8% over the amount of the payment

26
      under this act and section 10 of article IX of the state

27
      constitution of 1963 in the immediately preceding state fiscal



   07104'00
                                  18

 1
      year.  From the amount not distributed because of the limitation

 2
      imposed by this subsection, the department shall distribute an

 3
      amount to certain cities, villages, and townships such that the

 4
      percentage increase in the total payment under this act and sec-

 5
      tion 10 of article IX of the state constitution of 1963 from the

 6
      immediately preceding state fiscal year to each of those cities,

 7
      villages, and townships is equal to, but does not exceed, the

 8
      percentage increase from the immediately preceding state fiscal

 9
      year of any city, village, or township that does not receive a

10
      distribution under this subsection.  This subsection does not

11
      apply for state fiscal years after the 2000 federal decennial

12
      census becomes official to a city, village, or township with a

13
      10% or more increase in population from the official 1990 federal

14
      decennial census to the official 2000 federal decennial census. 

15
           (13) The percentage allocations to distributions under sub-

16
      sections (8) to (10) pursuant to subsection (11) shall be calcu-

17
      lated as if, in any state fiscal year, the amount appropriated

18
      under this section for distribution to cities, villages, and

19
      townships is 74.94% of 21.3% of the sales tax at a rate of 4%.

20
      If the amount appropriated under this section to cities, vil-

21
      lages, and townships is less than 74.94% of 21.3% of the sales

22
      tax at a rate of 4%, any reduction made necessary by this appro-

23
      priation in distributions to cities, villages, and townships

24
      shall first be applied to the distribution under subsections (8)

25
      to (10) and any remaining amount shall be applied to the other

26
      distributions under this section.





   07104'00
                                  19

 1
           (14)  A  FOR A STATE FISCAL YEAR BEFORE THE 2000-2001 STATE

 2
      FISCAL YEAR IN WHICH A township  that  provides for or makes

 3
      available fire, police on a 24-hour basis either through con-

 4
      tracting for or directly employing personnel, water to 50% or

 5
      more of its residents, and sewer services to 50% or more of its

 6
      residents and has a population of 10,000 or more or  a township

 7
      that  has a population of 20,000 or more, THE TOWNSHIP shall use

 8
      the unit type population weight factor under subsection (9)(a)

 9
      for a city with the same population as the township.

10
           (15) For a state fiscal year BEFORE THE 2000-2001 STATE

11
      FISCAL YEAR in which the sales tax collections decrease from the

12
      sales tax collections for the immediately preceding state fiscal

13
      year, the department shall reduce the amount to be distributed to

14
      a city with a population of 750,000 or more under subsection (6)

15
      by an amount determined by subtracting the amount the city is

16
      eligible for under section 10 of article IX of the state consti-

17
      tution of 1963 for the state fiscal year from $333,900,000.00 and

18
      multiplying that result by the same percentage as the percentage

19
      decrease in sales tax collections for that state fiscal year as

20
      compared to sales tax collections for the immediately preceding

21
      state fiscal year.

22
           (16) Notwithstanding any other provision of this section,

23
      for the 1998-1999 state fiscal year, the total combined amount

24
      received by each city, village, and township under this section

25
      and section 10 of article IX of the state constitution of 1963

26
      shall not be less than the combined amount received under this

27
      section, section 12a, and section 10 of article IX of the state



   07104'00
                                  20

 1
      constitution of 1963 in the 1997-1998 state fiscal year.  The

 2
      increase, if any, for each city, village, and township from the

 3
      1997-1998 state fiscal year, other than a city that receives a

 4
      distribution under subsection (6), shall be reduced by a uniform

 5
      percentage to the extent necessary to fund distributions under

 6
      this subsection.

 7
           (17) SUBJECT TO SECTION 13D, FOR STATE FISCAL YEARS BEGIN-

 8
      NING AFTER SEPTEMBER 30, 2000, THE DEPARTMENT OF TREASURY SHALL

 9
      CAUSE TO BE PAID ON A PER CAPITA BASIS TO EACH CITY, VILLAGE, AND

10
      TOWNSHIP AN AMOUNT EQUAL TO 74.94% OF 21.3% OF THE SALES TAX COL-

11
      LECTIONS AT A RATE OF 4% IN THE 12-MONTH PERIOD ENDING JUNE 30 OF

12
      THE STATE FISCAL YEAR IN WHICH THE PAYMENTS ARE MADE.

13
           (18)  (17)  The payments under subsections (3), (4), and (5)

14
      shall be made during each October, December, February, April,

15
      June, and August.  Payments under subsections (3), (4), and (5)

16
      shall be based on collections from the sales tax at the rate of

17
      4% in the 2-month period ending the prior August 31, October 31,

18
      December 31, February 28, April 30, and June 30, and for the

19
      1996-1997 and 1997-1998 state fiscal years only, the payments

20
      shall be reduced by 1/6 of the total distribution for the state

21
      fiscal year under section 12a.

22
           (19)  (18)  Payments under this section shall be made from

23
      revenues collected during the state fiscal year in which the pay-

24
      ments are made.

25
           (20)  (19)  Distributions provided for by this act are

   26 subject to an annual appropriation by the legislature.





   07104'00          Final page.                            KDD