Modifications to Downtown Development Authorities Definition

State Bills: Michigan

Published April 14th, 2026

Detected April 2nd, 2026

Summary

Michigan Senate Bill 0581 was signed into law on April 14, 2026, amending Section 201 of 2018 PA 57 (MCL 125.4201) to modify the definition of downtown district for purposes of downtown development authorities. The bill expands eligibility criteria for areas to qualify as downtown districts, enabling more Michigan municipalities to establish or expand tax increment financing districts. The legislation received immediate effect upon signing.

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What changed

Michigan SB0581 amends MCL 125.4201 to modify how downtown districts are defined for downtown development authorities (DDAs). The bill changes the criteria that determine which geographic areas can be designated as downtown districts, thereby expanding the potential scope of tax increment financing (TIF) arrangements statewide. Key votes show strong legislative support: the House passed 98-2 on March 19, 2026, and the Senate passed 22-9 on March 24, 2026. The bill is tied to HB 5455.

Michigan municipalities and local economic development agencies should review their current DDA boundaries and any pending development projects to determine whether the expanded definitional criteria create new opportunities for tax increment financing authority. Downtown development authorities should assess whether previously ineligible areas now qualify for designation. No specific compliance deadline was established; the law took immediate effect upon the governor's signature on April 14, 2026.

What to do next

Review updated downtown district definition under MCL 125.4201 to assess eligibility for new areas
Evaluate existing DDA boundaries against new definitional criteria
Consult with municipal legal counsel regarding implications for pending development projects

Source document (simplified)

ChangeBridge / Michigan / SB0581 Signed by Governor SB0581 Senate Bill Signed by Governor 2026-04-14

Economic development: downtown development authorities; definition of downtown district; modify. Amends sec. 201 of 2018 PA 57 (MCL 125.4201). TIE BAR WITH: HB 5455'26

Bill Details

State Michigan

Session 103rd Legislature

Chamber Senate

Official Source legislature.mi.gov/Bills/Bill?ObjectName=2...

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Action History

2026-04-14 S Assigned Pa 0005'26 With Immediate Effect 2026-04-14 S Filed With Secretary Of State 3/26/2026 11:37 Am 2026-04-14 S Approved By Governor 3/26/2026 9:30 Am 2026-03-26 S Presented To Governor 3/25/2026 1:36 Pm 2026-03-24 S Ordered Enrolled 2026-03-24 S Full Title Agreed To 2026-03-24 S Given Immediate Effect 2026-03-24 S Roll Call: Roll Call # 47 Yeas 22 Nays 9 Excused 6 Not Voting 0 2026-03-24 S House Substitute (h-1) Concurred In 2026-03-24 S Rules Suspended For Immediate Consideration 2026-03-24 S Passed By House With Substitute (h-1) With Immediate Effect 2026-03-19 H Returned To Senate 2026-03-19 H Inserted Full Title 2026-03-19 H Passed; Given Immediate Effect Roll Call #104 Yeas 98 Nays 2 Excused 0 Not Voting 10 2026-03-19 H Read A Third Time 2026-03-19 H Placed On Immediate Passage 2026-03-19 H Placed On Third Reading 2026-03-19 H Substitute (h-1) Adopted 2026-03-19 H Read A Second Time 2026-03-19 H Placed On Second Reading 2026-03-19 H Motion To Discharge Committee Approved 2026-03-19 H Rule Suspended 2026-03-11 H Referred To Committee On Economic Competitiveness 2026-03-11 H Read A First Time 2026-03-11 H Received On 03/11/2026 2026-03-11 S Passed Roll Call # 23 Yeas 22 Nays 13 Excused 2 Not Voting 0 2026-02-24 S Placed On Order Of Third Reading 2026-02-24 S Reported By Committee Of The Whole Favorably Without Amendment(s) 2026-02-12 S Referred To Committee Of The Whole 2026-02-12 S Reported Favorably Without Amendment 2/11/2026 2025-09-22 S Referred To Committee On Local Government 2025-09-22 S Introduced By Senator Kevin Hertel

Votes

2026-02-12 Reported Favorably Without Amendment 2/11/2026 Yea: 6 Nay: 1 2026-03-11 Senate Third Reading: Passed Roll Call # 23 Yea: 22 Nay: 13 2026-03-19 House Third Reading: Given Immediate Effect Roll Call #104 Yea: 98 Nay: 2 2026-03-24 Senate Third Reading: Roll Call: Roll Call # 47 Yea: 22 Nay: 9