AB 866

This bill requires the Department of Revenue to establish a program to provide

grants to cities and villages to compensate for the loss of property tax revenue, and

revenue from water or sewerage fees, as a result of flooding and the actions of the

Federal Emergency Management Agency with regard to that flooding. A city or

village with a population of less than 700 is eligible to receive a grant, generally, if

property in the city or village that is subject to the property tax or to the assessment

of water or sewerage fees has been destroyed by flooding that occurred after

December 31, 2017. In addition, owners of the property destroyed by flooding must

have accepted a buyout from FEMA, and FEMA must have prohibited improvements

on the land on which the property destroyed by flooding was located.

Under the bill, an eligible municipality receives a grant in an amount equal to

a percentage of the three-year average of property taxes and water or sewerage fees

assessed to flood-destroyed property in the three years preceding the flood. The

municipality receives a payment for five years that decreases in each year from a 100

percent payment in the first year to a 20 percent payment in the fifth year.