Section 12.253a - Local government reimbursement fund(1) The local government reimbursement fund is created in the state treasury.(2) The state treasurer shall deposit money and assets received under section 21(7) of the use tax act, 1937 PA 94, MCL 205.111, or from any other source in the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.(3) Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.(4) The department of treasury is the administrator of the fund for audits of the fund. (5) The department of treasury shall expend money from the fund, upon appropriation, only for the purpose of compensating municipalities as described in this subsection. Subject to subsection (6), on or before May 31, 2024, and on or before May 31 of each year thereafter, the department of treasury shall compensate municipalities for the revenue lost during the immediately preceding property tax year as a result of exemptions claimed under section 9o(2)(b) of the general property tax act, 1893 PA 206, MCL 211.9o, as determined by the department of treasury.(6) If the money in the fund is insufficient to fully compensate all municipalities that lost revenue as described in subsection (5), payments from the fund must be prorated amongst those municipalities.(7) As used in this section: (a) "Fund" means the local government reimbursement fund created in subsection (1).(b) "Municipality" means that term as defined in section 5 of the local community stabilization authority act, 2014 PA 86, MCL 123.1345.Added by 2023, Act 174,s 2, eff. 10/24/2023.