Economic development: tax increment financing; tax increment financing act; amend to exempt museum authorities. Amends secs. 201, 301, 402, 523, 603, 703 & 803 of 2018 PA 57 (MCL 125.4201 et seq.).

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

HB 5817 excludes taxes levied under the History Museum Authorities Act from tax increment revenues, protecting museum millage from TIF/brownfield capture.

bill ordered enrolled 12/23/2024

#economicdevelopment:taxincrementfinancing #historyandarts:other

Summary — HB 5817 (Recodified Tax Increment Financing Act amendments)

Status: Ordered enrolled 12/23/2024; passed Senate 12/20/2024 (Roll Call 20–18); passed House 6/27/2024 (Roll Call 267). Referred to Joint Committee on Appropriations 1/22/2025.
Bill amends: 2018 PA 57 (Recodified Tax Increment Financing Act), sections 201, 301, 402, 523, 603, 703 & 803 (MCL 125.4201 et seq.).

Purpose / Intent

HB 5817 narrows the definition of “tax increment revenues” in Michigan’s Recodified Tax Increment Financing (TIF) Act so that taxes levied under a new History Museum Authorities Act (created by companion legislation HB 4177) are not eligible to be captured (i.e., diverted) by downtown development, tax increment, or brownfield redevelopment authorities. The purpose is to preserve local millage revenue raised for history museum authorities for those museums and prevent that revenue from being retained by other capture mechanisms.

Key provisions

Amends multiple sections of the Recodified TIF Act to exclude ad valorem and specified local taxes levied under the proposed History Museum Authorities Act from the definition of “tax increment revenues.” (See amended MCL sections: 125.4201, 125.4301, 125.4402, 125.4523, 125.4603, 125.4703, 125.4803.)

Tie-bar: HB 5817 is tied to HB 4177 (History Museum Authorities Act) and HB 5818 (similar exclusion in the Brownfield Redevelopment Financing Act); all must be enacted together to take effect.

Does not itself create a new millage or authority; it protects millage revenue that would be raised under HB 4177 from capture by TIF/brownfield authorities.

Who is affected

Counties that create a history museum authority under HB 4177 and voters who approve a millage under that act (primary practical candidate: Wayne County / Detroit).

Existing TIF authorities, downtown development authorities, and brownfield authorities — these entities would be prevented from capturing revenue derived from the museum-related millages.

Local municipalities and property taxpayers in counties that levy such a museum millage (distribution of local property-tax revenue would change if the museum millage is adopted).

Fiscal impact

No direct state fiscal effect.

Potential local revenue impact if a county forms a history museum authority and voters approve a millage: the revenue would go to the museum authority rather than being available for TIF/brownfield capture. Example cited in analyses: for tax year 2024 Wayne County taxable value ≈ $55.6 billion; a 0.2-mill levy could generate ~ $11.1 million annually (actual revenue depends on taxable value and millage rate). Because no history museum authority currently exists, the bill has no direct fiscal impact now.

Procedural / timeline notes

HB 5817 was introduced in the House and passed both chambers in 2024; enrolled 12/23/2024.

The exclusion created by HB 5817 takes effect only if the companion History Museum Authorities Act (HB 4177) is enacted (tie-bar).

HB 4177 sets specific limits and procedures for any history museum millage (e.g., voter approval requirements, millage rate and duration limits, contracting and reporting rules).

Bill