The "opt out" provision is provided in the acts:

• DDA PA 197 of 1975 MCL 125.1653, Section 3 (3)
• TIFA PA 450 of 1980 not applicable
• LDFA PA 281 of 1986 MCL 125.2154, Section 4 (3)

These provisions only apply to public hearings for the formation of new authorities and for the amending of authority district boundaries. The municipality must notify the affected taxing jurisdictions. (To notify the state, notification should be sent to Property Tax Division, Michigan Dept. of Treasury, PO Box 30471, Lansing, MI 48909-7971.) The taxing jurisdictions may "opt out" as follows:

• The DDA act states "Not more than 60 days after a public hearing held after February 15, 1994, the governing body of a taxing jurisdiction levying ad valorem property taxes that would otherwise be subject to capture may exempt its taxes from capture by adopting a resolution to that effect and filing a copy with the clerk of the municipality proposing to create the authority."
• The LDFA act states "Not more than 60 days after a public hearing held after February 15, 1994, the governing body of a taxing jurisdiction with millage that would otherwise be subject to capture may exempt its taxes from capture by adopting a resolution to that effect and filing a copy with the clerk of the municipality proposing to create the authority."

The "opt out" provision does apply to new authorities or to amending the authority district boundaries.

The "opt out" provision includes ad valorem taxes and specific taxes (e.g. Industrial Facilities Tax). When DDA or LDFA authority district boundaries are being expanded, the opt-out provision only applies to the area being added to the district. If a taxing unit exempts its millage from capture in an added area, the captured value for that taxing unit's millage will be calculated excluding the added area. The captured value for the other millages will be calculated including the added area.

The "opt out" provision does not apply to:

• amending plan projects without expanding authority district boundaries.
• amending the duration of the plan without expanding authority district boundaries.
• amending the boundaries of a DDA plan's development area, within the existing DDA district boundaries.
• A new DDA plan within the existing DDA district boundaries.
• The amendment to an LDFA development plan or tax increment finance plan within existing LDFA district boundaries.

When a DDA is expanding the boundaries of both its authority district and a plan's development area, the authority may capture taxes from the revised development area, including the property added to the authority district and the development area, except that:

• if a taxing jurisdiction exempts its millage ("opts out")from capture in the added area, its taxes may not be captured from the added area;
• the capture of school taxes from the revised development area is subject to the act's limitations on capturing school taxes.

When an LDFA expands its authority district, non-school taxes from the new area may be captured unless the taxing jurisdictions "opt out". If the added area is an expansion of a certified business park (formerly called a "certified industrial park") located in the LDFA district, and if the taxing jurisdictions do not "opt out", the plan may also capture school taxes from the entire certified business park, subject to the act's limitations on capturing school taxes for eligible property in the certified business park.