SENATE BILL No. 379

April 17, 2001, Introduced by Senator JAYE 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 2000-2001 state fiscal years, and

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

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

17 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, 2001, 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 2000-2001 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 2000-2001 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 2000-2001 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 2000-2001 STATE FISCAL YEARS, subject

17 to the limitations under this section and except as provided in

18 subsection (14), a unit type population payment shall be made to

19 each city, village, and township with a population of less than

20 750,000 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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1 (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 2000-2001 STATE FISCAL YEARS, subject

10 to the limitations under this section, a yield equalization pay-

11 ment shall be made to each city, village, and township with a

12 population of less than 750,000 sufficient to provide the guaran-

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

14 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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1 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 THROUGH 2000-2001 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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1 (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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1 (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.

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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 2001-2002 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

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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.

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1 (14) A FOR A STATE FISCAL YEAR BEFORE THE 2001-2002 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 2001-2002 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

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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, 2001, 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.

01746'01 Final page. KDD