The proposal would increase the state sales and use tax rates from the current 4% rates to 6% effective July 17, 1993.[20] The limit on the sales tax rate would also increase to 6%. There would be no change in the current exclusion for food and drugs.

The Use Tax Act is a separate Public Act from the General Sales Tax Act, and both are currently levied by the state at 4%. However, other use taxes are also levied. The proposal does not establish a limit on use tax rates, nor does it prohibit local use taxes. The legislature has allowed various units of local government to levy use taxes as high as 30%.[21] The courts have held that use taxes are not limited by the current constitutional sales tax limit of 4%, and the amendment would not change this.[22]

The proposal also would dedicate the revenue from the additional 2% rate of state sales and use taxes to the school aid fund.[23]