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SB 553

Economic development: tax increment financing; water resource improvement authorities; modify. Amends secs. 703, 705 & 710 of 2018 PA 57 (MCL 125.4703 et seq.).

2025-2026 Regular Session Introduced by Sam Singh

Michigan bill modifies tax increment financing and water authority rules to adjust how municipalities fund economic development and water infrastructure projects.

referred to Committee on Government Operations
#economicdevelopment:taxincrementfinancing
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Bill Summary · SB 553

Legislative bill overview

SB 553 modifies Michigan's tax increment financing (TIF) framework and water resource improvement authorities under the 2018 Public Act 57. The bill amends three key sections (703, 705, and 710) of the existing statute, though specific amendments are not detailed in the introduced version. This adjustment suggests refinements to how local governments can use tax increment financing for economic development and water infrastructure projects.

Why is this important

Tax increment financing is a major tool municipalities use to fund infrastructure improvements and economic development by capturing future tax revenue increases in designated districts. Water resource improvement authorities manage critical water infrastructure projects. Changes to these mechanisms affect how communities finance development, which influences property tax allocation, municipal budgets, and public infrastructure investment priorities across Michigan.

Potential points of contention

  • Tax revenue reallocation: TIF districts capture future tax growth that would otherwise go to schools and other taxing authorities, raising concerns about funding impacts on education and public services in surrounding areas
  • Transparency and oversight: Modifications to TIF authority could affect public accountability in how districts are designated and managed, with potential for favoritism toward certain developments
  • Water infrastructure equity: Changes to water resource improvement authorities may affect how costs are distributed among ratepayers and municipalities, potentially benefiting some communities while burdening others

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

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