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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5831 December 17, 1980 MUNICIPALITIES: Distribution of federal funds under Refuge Revenue Sharing Act NATURAL RESOURCES: Distribution of federal funds under Refuge Revenue Sharing Act Federal revenues received from the National Wildlife Refuge System are to be distributed among all local governmental units in the same proportions in which the township or city treasurer distributes ad valorem property taxes. Honorable Loren E. Monroe State Treasurer The Treasury Building Lansing, Michigan You have asked my opinion on the following questions: 1. Are the funds in the hands of the township treasurer and received from the U.S. Department of the Interior to be distributed in accordance with the formula contained in 1933 PA 37; MCLA 388.831 et seq; MSA 3.831 et seq, Sec. 3? 2. Are such funds to be distributed to all tax levying local units of government which have incurred the loss of real property tax revenue because of the existence of the federal area? Stated alternatively, should the township treasurers distribute the funds received from the U.S. Department of the Interior to the local units which share in the property tax in proportion to their annual share of the tax levy? 1933 PA 37, supra, Sec. 1, makes reference to an act of Congress approved May 24, 1908, being 35 Stat 260 (1908); 16 USC 500. This congressional act dealt with the national forest program 16 USC 471 through 16 USC 538, administered by the Secretary of Agriculture. The formula contained in 1933 PA 37, Sec. 3, supra, for distribution of funds received under the national forest program is consistent with the congressional mandate that such funds be expended 'for the benefit of the public schools and public roads of the county or counties in which such national forest is situated . . .' 35 State 260 (1908), 16 USC 500. Your first question does not, however, have reference to funds received from the national forest program administered by the Secretary of Agriculture; it is concerned with funds 'received from the United States Department of the Interior.' That department manages the National Wildlife Refuge System and distributes certain revenues derived therefrom to the counties in which wildlife preserves are located pursuant to the refuge revenue sharing act of 1964, 78 Stat 701 (1946), 16 USC 715s. The objective of this financial assistance is to grant funds to local governmental agencies in substitution for the loss of tax revenues from local ad valorem property taxes. Cameron Parish Police Jury v Hickel, 302 F Supp 689 (WD La, 1969). The original legislation which required that all funds be paid to each county with reserved public lands within its borders and which required that all funds paid to these select counties be used solely for public schools and roads, 78 Stat 701 (1946), 16 USC 715s(c), was amended in 1978 to provide: '(5) (A) Each county which receives payments under paragraphs (1) and (2) with respect to any fee area or reserve area shall distribute, under guidelines established by the Secretary, such payments on a proportional basis to those units of local government (including, but not limited to, school districts and the county itself in appropriate cases) which have incurred the loss or reduction of real property tax revenues by reason of the existence of such area. In any case in which a unit of local government other than the county acts as the collecting and distributing agency for real property taxes, the payments under paragraphs (1) and (2) shall be made to such other unit which shall distribute the payments in accordance with the guidelines. '(B) The Secretary may prescribe regulations under which payments under this paragraph may be made to units of local government in cases in which subparagraph (A) will not effect the purposes of this paragraph. '(C) Payments received by units of local government under this subsection may be used by such units for any governmental purpose.' PUB L 95-469, Sec. 2(a); 92 State 1319; 16 USC 715s(5) (1978). [Emphasis added.] The federal legislation requires the revenues derived from the Wildlife Refuge System be paid directly to that unit of local government which 'collects and distributes' real property taxes. (1) Upon receipt of these federal funds, the local unit is then required to distribute this revenue in accordance with federal guidelines in the same manner that it distributes real property taxes which it collects. 50 CFR Sec. 34.5(b)(3), in part, provides: 'The amount of distribution or pass-through to which each unit of local government shall be entitled shall be in the same proportion as its current tax loss bears to the current whole tax loss.' Thus, if, by way of example, a local township treasurer as the collecting and distributing agency of all ad valorem property taxes levied and collected within the township, pays over 1 mill to the local community college district, 2 mills to the township, 26 mills to the school district and 7 mills to the county from the total millage levied and collected, the township treasurer must pay that same proportion to these entities from the federal revenue received under 16 USC 715s(5), supra. The formula in 1933 PA 37, supra, is inapplicable to such distribution. In response to your first question, it is my opinion, therefore, that the formula set forth in 1933 PA 37, Sec. 3, supra, has no application to revenues received from the National Wildlife Refuge System as set forth in 16 USCA 715s, supra. In response to your second question, it is my opinion that the township treasurer should distribute all federal revenues received from the National Wildlife Refuge System in the same manner as he or she distributes ad valorem property taxes. Frank J. Kelley Attorney General (1)
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