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HB 5818

Economic development: brownfield redevelopment authority; brownfield redevelopment financing act; amend to exempt museum authorities. Amends sec. 2 of 1996 PA 381 (MCL 125.2652).

2023-2024 Regular Session Introduced by Tyrone Carter and 1 co-sponsor

The bill prevents any history museum authority millage from being captured by brownfield TIFs, shifting museum revenue to the museum instead of brownfield plans.

bill ordered enrolled 12/23/2024
#economicdevelopment:brownfieldredevelopmentauthority #historyandarts:other
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Bill Summary · HB 5818

Summary — HB 5818 (Brownfield Redevelopment Financing Act amendment)

Main purpose

HB 5818 amends the Brownfield Redevelopment Financing Act (1996 PA 381) by changing the definition of “tax increment revenues” (MCL 125.2652) to exclude taxes levied under the proposed History Museum Authorities Act. In plain terms, property taxes (ad valorem or specific taxes) raised by a county history museum authority would not be eligible to be captured and used by brownfield redevelopment authorities as tax increment financing (TIF) revenue.

The bill is tie‑barred to House Bill 4177 (establishing History Museum Authorities) and HB 5817 (making the same exclusion in the Recodified Tax Increment Financing Act).

Key provisions

  • Amends section 2 of the Brownfield Redevelopment Financing Act (MCL 125.2652) to remove from the definition of “tax increment revenues” any ad valorem or specific taxes imposed under the History Museum Authorities Act.
  • Effect: any millage levied by a county history museum authority (as authorized under HB 4177) could not be “captured” (redirected) by a brownfield authority under an adopted brownfield plan.
  • Tie‑bar: HB 5818 only takes effect if HB 4177 and HB 5817 are also enacted.

Who is affected

  • Primary beneficiaries: a county history museum authority and the history museum services provider(s) receiving the millage revenue (the bills were crafted with a focus on a museum owned by a city of 500,000+ — i.e., Detroit).
  • Affected parties: brownfield redevelopment authorities and other TIF authorities that otherwise could capture incremental tax revenue in their project areas — they would be barred from capturing museum‑authority levies.
  • Local taxpayers: voters in a county that establishes a history museum authority (they must approve any millage).
  • Local units of government: counties/municipalities that administer elections would be reimbursed for election costs if a museum-authority millage is approved.

Fiscal and practical impact

  • No direct state fiscal effect.
  • Local revenue distribution could change: revenue from a history museum authority millage would flow to the museum authority/provider rather than being available for capture by brownfield/TIF plans.
  • Example estimate from analyses: Wayne County taxable value (tax year 2024) ≈ $55.6 billion; a 0.2‑mill levy would generate ~ $11.1 million annually — though no history museum authority currently exists, so the change has no immediate fiscal impact.

Procedural status / timing

  • Amended statute: 1996 PA 381 (Brownfield Redevelopment Financing Act), sec. 2 (MCL 125.2652).
  • Passed House (6/27/2024) and Senate (12/20/2024); bill ordered enrolled 12/23/2024.
  • The provision is tie‑barred to HB 4177 and HB 5817; all must be enacted for the exclusion to take effect.
  • Under the companion History Museum Authorities Act (HB 4177), any ballot question to levy the museum millage could not be submitted before Jan 1, 2025.

Note

HB 5818 does not itself create a museum authority or authorize a tax; it only protects such a tax (if later authorized by HB 4177) from being captured by brownfield/TIF mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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