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SB 581MICHIGANSession 2025-2026State BillSigned into law

Enacted

Michigan SB 581 modifies downtown development authority definitions and tax increment financing rules

Original title: Economic development: downtown development authorities; definition of downtown district; modify.

Last action · April 14, 2026: ASSIGNED PA 0005'26 WITH IMMEDIATE EFFECTSponsor: Kevin Hertel

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Does

Senate Bill 581 amends the Recodified Act to update definitions regarding downtown districts, obligations, and tax increment revenues for municipal development authorities. The measure is contingent upon the enactment of House Bill No. 5455.

Why it matters

Changes statutory definitions that govern how municipalities calculate captured property values, allocate tax increment revenues, and manage downtown development authorities across the state.

Background

Downtown development authorities in Michigan utilize tax increment financing to fund local public improvements and economic development projects within designated districts. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Municipalities

Cities, villages, and townships utilize downtown development authority definitions and tax increment financing rules for local economic development projects.

Directly affected

Downtown Development Authorities

Authorities operate under updated statutory definitions governing their development areas, advances, and revenue capture.

Key Facts

Amends section 201 of 2018 PA 57 (MCL 125.4201) regarding the definitions used in the Recodified Tax Increment Financing Act.
Modifies definitions related to municipal downtown development authorities, including advance, assessed value, captured assessed value, and downtown district.
Updates provisions concerning eligible obligations, qualified refunding obligations, and tax increment revenues.
Establishes a condition that the amendatory act does not take effect unless House Bill No. 5455 of the 103rd Legislature is enacted into law.

Frequently Asked Questions

What does Senate Bill 581 do?

It amends section 201 of the Recodified Act of 2018 to modify definitions concerning downtown districts, tax increment revenues, and municipal obligations.

Is the bill currently in effect?

The bill specifies that it does not take effect unless House Bill No. 5455 of the 103rd Legislature is enacted into law.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

32 actions

Apr 14, 2026Senate
ASSIGNED PA 0005'26 WITH IMMEDIATE EFFECT
Apr 14, 2026Senate
FILED WITH SECRETARY OF STATE 3/26/2026 11:37 AM
Apr 14, 2026SenateEnrolled
APPROVED BY GOVERNOR 3/26/2026 9:30 AM
Mar 26, 2026SenateEnrolled
PRESENTED TO GOVERNOR 3/25/2026 1:36 PM
Mar 24, 2026Senate
ORDERED ENROLLED
Mar 24, 2026Senate
FULL TITLE AGREED TO

Show 26 earlier actions

Mar 24, 2026Senate
GIVEN IMMEDIATE EFFECT
Mar 24, 2026Senate
ROLL CALL: ROLL CALL # 47 YEAS 22 NAYS 9 EXCUSED 6 NOT VOTING 0
Mar 24, 2026Senate
HOUSE SUBSTITUTE (H-1) CONCURRED IN
Mar 24, 2026Senate
RULES SUSPENDED FOR IMMEDIATE CONSIDERATION
Mar 24, 2026SenateFloor
PASSED BY HOUSE WITH SUBSTITUTE (H-1) WITH IMMEDIATE EFFECT
Mar 19, 2026House
returned to Senate
Mar 19, 2026House
inserted full title
Mar 19, 2026HouseFloor
passed; given immediate effect Roll Call #104 Yeas 98 Nays 2 Excused 0 Not Voting 10
Mar 19, 2026HouseFloor
read a third time
Mar 19, 2026House
placed on immediate passage
Mar 19, 2026House
placed on third reading
Mar 19, 2026HouseFloor
substitute (H-1) adopted
Mar 19, 2026HouseFloor
read a second time
Mar 19, 2026House
placed on second reading
Mar 19, 2026House
motion to discharge committee approved
Mar 19, 2026House
rule suspended
Mar 11, 2026HouseCommittee
referred to Committee on Economic Competitiveness
Mar 11, 2026HouseIntroduced
read a first time
Mar 11, 2026House
received on 03/11/2026
Mar 11, 2026SenateFloor
PASSED ROLL CALL # 23 YEAS 22 NAYS 13 EXCUSED 2 NOT VOTING 0
Feb 24, 2026Senate
PLACED ON ORDER OF THIRD READING
Feb 24, 2026Senate
REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)
Feb 12, 2026SenateCommittee
REFERRED TO COMMITTEE OF THE WHOLE
Feb 12, 2026SenateCommittee
REPORTED FAVORABLY WITHOUT AMENDMENT 2/11/2026
Sep 22, 2025SenateCommittee
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT
Sep 22, 2025SenateIntroduced
INTRODUCED BY SENATOR KEVIN HERTEL

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

cross reference100% confidence

Legislative Contingency

The bill explicitly conditions its enactment on the passage of a companion measure, House Bill No. 5455.

House Bill No. 5455

Connected Entities

Kevin Hertel

PersonKevin Hertel“Bill sponsor in the upper house”Map →

Sources

Open source document

legislature.mi.gov

Analysis Score

0–100

Significance40
How much this matters to a regular citizen
Controversy10
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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