Proposed constitutional amendment to amend Article IX, Section 3.

Article IX of the Michigan Constitution is hereby amended by amending Section 3, such amendment to read as follows: (NEW LANGUAGE CAPITALIZED)

ARTICLE IX

Section 3. EXCEPT AS PROVIDED IN THIS SECTION, 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. BEGINNING DECEMBER 31, 1992, THE LEGISLATURE SHALL PROVIDE THAT THE STATE EQUALIZED VALUE OF EACH PARCEL OF PROPERTY ADJUSTED FOR ADDITIONS AND LOSSES, SHALL NOT INCREASE EACH YEAR BY MORE THAN THE INCREASE IN THE GENERAL PRICE LEVEL, AS DEFINED IN SECTION 33 OF THIS ARTICLE, FROM THE PRIOR YEAR OR 3 PERCENT WHICHEVER IS LESS, UNLESS THE PROPERTY IS SOLD. WHEN A PARCEL OF PROPERTY IS SOLD, IT SHALL BE ASSESSED AT THE THEN APPLICABLE PROPORTION OF TRUE CASH VALUE. PROPERTY IS EXEMPT FROM THE FOLLOWING PERCENTAGE OF GENERAL AD VALOREM TAXES LEVIED FOR OPERATING PURPOSES BY A SCHOOL DISTRICT: 10 PERCENT OF TAXES LEVIED IN 1993; 15 PERCENT OF TAXES LEVIED IN 1994; 20 PERCENT OF TAXES LEVIED IN 1995; 25 PERCENT OF TAXES LEVIED IN 1996; AND 30 PERCENT OF TAXES LEVIED IN 1997 AND EACH YEAR THEREAFTER. THE LEGISLATURE SHALL APPROPRIATE AND THE STATE TREASURER SHALL REIMBURSE EACH SCHOOL DISTRICT AN AMOUNT EQUAL TO THE GENERAL AD VALOREM TAX REDUCTIONS RESULTING FROM THE PERCENTAGE OPERATING TAX EXEMPTION 1N THIS SECTION. THE REIMBURSEMENT SHALL BE CALCULATED USING THE SCHOOL DISTRICT MILLAGE RATE FOR OPERATING PURPOSES LEVIED IN THE THEN CURRENT YEAR OR LEVIED IN 1991, WHICHEVER IS LESS. The legislature may provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation. Every tax other than the general ad valorem property tax shall be uniform upon the class or classes on which it operates.

THE LEGISLATURE SHALL APPROPRIATE AND THE STATE TREASURER SHALL REIMBURSE UNITS OF LOCAL GOVERNMENT OR AUTHORITIES AN AMOUNT NECESSARY TO INSURE THAT CONTRACTUAL OBLIGATIONS ENTERED INTO BEFORE SEPTEMBER 1, 1991, PURSUANT TO A TAX INCREMENT FINANCING PLAN UNDER THE LOCAL DEVELOPMENT FINANCING ACT, ACT NO. 281 OF THE PUBLIC ACTS OF 1986, THE TAX INCREMENT FINANCE AUTHORITY ACT, ACT NO. 450 OF THE PUBLIC ACTS OF 1980, OR ACT NO. 197 OF THE PUBLIC ACTS OF 1975, ARE NOT IMPAIRED DUE TO THE PERCENTAGE OPERATING TAX EXEMPTION IN THIS SECTION.

Provisions of existing constitution altered or abrogated by such proposal if adopted.

ARTICLE IX

Section 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. The legislature may provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation. Every tax other than the general ad valorem property tax shall be uniform upon the class or classes on which it operates.