Filed with the Secretary of State
April 5, 1993
STATE OF MICHIGAN
REGULAR SESSION OF 1993
Introduced by Reps. Oxender, Nye, Keith, Sikkema, Dobb, Dalman, Pitoniak, Bobier, Jondahl, Munsell, O'Neill, Gilmer, Bender, Weeks, Martin, Horton, Byrum, Middleton, Agee, Emerson, DeMars, Hoffman, Scott, Alley, Brown, Baade, Stille, Dolan, Wetters, Leland, DeLange, Walberg, Shepich, Curtis and Gernaat
Reps. Allen, Bankes, Bodem, Brackenridge, Bullard, Crissman, Cropsey, Gnodtke, Goschka, Gustafson, Hammerstrom, Hill, Jersevic, Johnson, Kukuk, Llewellyn, London, Lowe, McManus, Middaugh, Randall, Rhead, Shugars and Voorhees named co-sponsors
JOINT RESOLUTION G
A JOINT RESOLUTION proposing an amendment to the state constitution of 1963, by amending section 41 of article IV and sections 3, 6, 8, 10, and 11 of article IX, to dedicate lottery revenues to the state school aid fund and to provide for an increase in the sales and use taxes, to dedicate certain revenues to the state school aid fund to limit property assessment increases, limit total millages, and limit local school district operating and county allocation millages, and to establish a local school district foundation expenditure guarantee.
Resolved by the Senate and House of Representatives of the state of Michigan, That the following amendment to the state constitution of 1963, to dedicate lottery revenues to the state school aid fund and to provide for an increase in the sales and use taxes, to dedicate certain revenues to the state school aid fund to limit property assessment increases, limit total millages, and limit local school district operating and county allocation millages, and to establish a local school district foundation expenditure guarantee, is proposed, agreed to, and submitted to the people of the state:
Sec. 41. The legislature may authorize lotteries and permit the sale of lottery tickets in the manner provided by law. All net revenue and interest earned on net revenue, other than interest used for the payment of prizes, by the state from the operation of a lottery shall be deposited in the state school aid fund established in Section 11 of Article IX.
Sec. 3. The legislature shall provide for the uniform general ad valorem taxation of real and tangible personal property not exempt by law. The legislature shall provide for the determination of true cash value of such property; the proportion of true cash value at which such property shall be uniformly assessed, which shall not, after January 1, 1966, exceed 50 percent; and for a system of equalization of assessments. For taxes levied in 1993 and each year thereafter, the legislature shall provide that the state equalized valuation of each parcel of property, adjusted for additions and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, as defined in Section 33 of this Article, or 5%, whichever is less until ownership of the parcel of property is transferred. When ownership of the parcel of property is transferred as defined by law, the parcel shall be assessed at the applicable proportion of current true cash value. The legislature may provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation. Ever:• tax other than the general ad valorem property tax shall be uniform upon the class or classes an which it operates.
Sec. 6. Except as other-wise provided in this constitution, the total amount of general ad valorem taxes imposed upon real and tangible personal property for all purposes in any one year shall not exceed 15 mills minus the number of mills allocated for local school district operating purposes in 1992 on each dollar of the assessed valuation of property as finally equalized. Under procedures provided by law, which shall guarantee the right of initiative, separate tax limitations for any county and for the townships and for school districts therein, the aggregate of which shall not exceed 18 mills minus the number of mills allocated for local school district operating purposes in 1992 on each dollar of such valuation, may be adopted and thereafter altered by the vote of a majority of the qualified electors of such county voting thereon, in lieu of the limitation hereinbefore established. Mills shall not be allocated to local school districts after 1992 for local school district operating purposes, as defined by law. These limitations may be increased to an aggregate of not to exceed 40 mills on each dollar of valuation, for a period of not to exceed 20 years at any one time, if approved by a majority of the electors, qualified under Section 6 of Article II of this constitution, voting on the question.
Beginning in the 1993 calendar year, a local school district shall levy an ad valorem property tax for local school district operating purposes only as provided in this section. A local school district may uniformly levy 18 mills without approval of the qualified electors. As provided and limited by law, each local school district may levy up to an additional 9 mills for school operating purposes in excess of the 18 mills. For each year after 1993, a local school district shall hold not more than 2 elections in a calendar year concerning an additional millage allowed under this paragraph, regardless of the number of questions presented at the election. A local school district shall not levy more than 27 mills for operating purposes. Mills levied under this paragraph shall be included in the 40 mill limitation and are subject to the requirements of Section 31 of this Article.
The legislature shall appropriate and distribute to authorities established under law with the power to approve a tax increment financing plan, sufficient money annually to assure that the reduction in tax increment revenues caused by the reduction in property tax rates imposed by this Article in 1993 and thereafter from property tax rates levied in 1992 will not result in revenues that are insufficient to repay any advance made by a municipality before April 15, 1993 to those authorities or to pay obligations issued or incurred by or on behalf of those authorities before October 1, 1993, if the tax increment financing plan including the project for which the obligations are incurred was approved by the municipality in accordance with law before July 1, 1993.
This section shall not preclude the capture and use pursuant to a tax increment financing plan of revenue derived from the property tax levies of a local school district or the allocation of those revenues by the legislature.
The foregoing limitations shall not apply to taxes imposed for the payment of principal and interest on bonds approved by the electors or other evidences of indebtedness approved by the electors or for the payment of assessments or contract obligations in anticipation of which bonds are issued approved by the electors, which taxes may be imposed without limitation as to rate or amount; or, subject to the provisions of Section 25 through 34 of this article, to taxes imposed for any other purpose by any city, village, charter county, charter township, charter authority or other authority, the tax limitations of which are provided by charter or by general law.
In any school district which extends into two or more counties, property taxes at the highest rate available in the county which contains the greatest part of the area of the district may be imposed and collected for school purposes throughout the district.
Sec. 8. Except as provided in this section, the Legislature shall not impose a sales tax on retailers at a rate of more than 4% of their gross taxable sales of tangible personal property.
Beginning on the date this paragraph becomes a part of the constitution, the Legislature shall impose the sales tax on retailers at an additional rate of 2% of their gross taxable sales of tangible personal property not exempt by law- and the use tax at an additional rate of 296. The proceeds of the sales and use taxes imposed at the additional rate of 2% shall be deposited in the state school aid fund established in Section 11 of this Article. The allocation of sales tax revenue required or authorized by Sections 9 and 10 of this Article does not apply to the revenue from the sales tax imposed at the additional rate of 2%.
No sales tax or use tax shall be charged or collected from and after January 1, 1975 on the sale or use of prescription drugs for human use, or on the sale or use of food for human consumption except in the case of prepared food intended for immediate consumption as defined by law. This provision shall not apply to alcoholic beverages.
Sec. 10. Fifteen percent of all taxes imposed on retailers on taxable sales at retail of tangible personal property at a rate of not more than 4% shall be used exclusively for assistance to townships, cities and villages, on a population basis as provided by law. In determining population the legislature may exclude any portion of the total number of persons who are wards, patients or convicts in any tax supported institution.
Sec. 11. There shall be established a state school aid fund which shall be used exclusively for aid to school districts, higher education and school employees' retirement systems, as provided by law. Sixty percent of all taxes imposed at a rate of 4% on retailers on taxable sales at retail of tangible personal property, the proceeds of the sales and use taxes imposed at the additional rate of 2%, and other tax revenues provided by law, shall be dedicated to this fund. Payments from this fund shall be made in full on a scheduled basis, as provided by law.
For the purpose of funding a system of free public elementary and secondary schools defined by Section 2 of Article VIII, there is established a minimum per pupil foundation guarantee. The legislature may appropriate additional funds for instructional programs as provided by law. There shall be appropriated from the state school aid fund to each local school district an amount sufficient to guarantee that for the first 18 mills of ad valorem property taxes for local school district operating purposes levied by each local school district, the total state and local general revenue for operating purposes as defined by law for each membership pupil shall be not less than $4,800.00 in the state fiscal year 1993-94. However, the legislature shall provide by law that the total state and local general revenue for operating purposes for a local school district receiving state funds to meet the per pupil foundation guarantee under this paragraph shall be increased by not more than 10% per pupil per year. This foundation guarantee shall be adjusted each state fiscal year after 1993-94 by the same percentage as the weighted average percentage change as defined by law in the sales tax collections and lottery net revenue dedicated to the state school aid fund adjusted for tax rate changes and the yield generated from the first 18 mills levied for local school district operating purposes, in the immediately preceding state fiscal year, adjusted for any change in pupil membership.
The state shall guarantee that the additional 9 school operating mills provided for in Section 6 of this Article will yield not less than $100.00 per membership pupil per mill.
If a local school district levies less than 18 mills pursuant to a millage reduction required under Section 31 of this Article, the local school district shall receive the same state payments required by this section as if the district levied 18 mills.
For the 1993-94 state fiscal year, for a local school district that levies 27 mills for operating purposes in 1993, if the combined 1993-94 state fiscal year per pupil local revenue for operating purposes and the 1993-94 state fiscal year foundation guarantee payment is less than 103% of the 1992-93 state fiscal year total per pupil state and local general revenue for operating purposes, the district shall receive a supplemental payment per pupil for the difference.
For 1994-95 state fiscal year and each state fiscal year thereafter, the per pupil supplemental payment for a local school district that levies in that fiscal year 27 mills for operating purposes before the application of Section 31 of this Article is the per pupil supplemental payment from the immediately preceding state fiscal year reduced by the amount, if any, required to limit the district's per pupil percentage change in total state and local general revenue for operating purposes to the annual percentage change in the state foundation guarantee.
Resolved further, That the foregoing amendment shall be submitted to the people of the state at a special election on June 2, 1993 in the manner provided by law.
I hereby certify that on the thirty-first day of March, nineteen hundred ninety-three, the foregoing joint resolution was agreed to by the House of Representatives, by a two-thirds vote of all the Representatives-elect.
Co-Clerk of the House of Representatives.
I hereby certify that on the thirty-first day of March, nineteen hundred ninety-three, the foregoing joint resolution was agreed to by the Senate, by a two-thirds vote of all the Senators-elect.
Secretary of the Senate.