State Rep. John Reilly (R-Oakland Township) introduced House Bill 5460, which would increase transparency about where Michigan taxpayer dollars are going.
The bill, which has bipartisan cosponsorship, would require the state to report how much money companies are receiving from tax credits under the Michigan Economic Growth Authority.
“This is a basic transparency measure for Michigan taxpayers, who deserve to know where their money is going,” Rep. Reilly recently told Michigan House Republicans. “If the state is giving companies special tax treatment that essentially amounts to taxpayer subsidies, the taxpayers who paid for these agreements should not be blocked from seeing where their own money is going.”
The bill also requires the Michigan Strategic Fund to post draft contract agreements on its website for 10 business days "before it can approve a grant, award, tax credit, loan or other assistance," as reported by Michigan House Republicans.
If a company that receives funds requests to amend the contract agreement, the Michigan Economic Development Corporation must notify taxpayers by posting a notice on its website. Any funds a company loses for failing to meet contract agreements would be given to the state general fund.
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