Article IX
Sec. 25: There is hereby established a limit on the total amount of taxes which may be levied by the Legislature in any fiscal year on the taxpayers of this State. Effective with the first fiscal year beginning after the ratification of this Section, and for each fiscal year thereafter, the Legislature shall not impose taxes of any kind which, together with all other revenues of the State, federal aid excluded, will total more than 8.3% of the personal income of Michigan for the previous fiscal year or the average of personal income of Michigan for the previous five calendar years, whichever is greater. “Personal income of Michigan” means the total income received by persons in Michigan from all sources, as defined and officially reported by the United States Department of Commerce or its successor agency.
For any fiscal year, in the event that State revenues, excluding federal aid, do exceed 8.3% of the personal income of Michigan reported for the previous fiscal year or the average of personal income of Michigan for the previous five calendar years, whichever is greater, the excess shall be refunded pro rata on the income taxes annual returns filed following the close of such fiscal year.
The limitation of this Section shall not apply to taxes imposed for the payment of principal and interest on bonds or other evidence of indebtedness authorized under Sections 15 and 16 of this Article.
Sec. 26: The tax limitation of Section 25 of this Article may be exceeded only if all of the following conditions are met: (1) The Governor requests the Legislature to declare an emergency; (2) the request shall be specific as to the nature of the emergency, the dollar amount of the emergency, and the method by which the emergency will be funded; (3) upon receiving this request, the Legislature declares an emergency, in accordance with the specifics of the Governor’s request, by a two-thirds vote of the members elected to and serving in each house. The emergency must be declared in accordance with this Section prior to incurring any of the expenses which constitute the specific emergency request. The tax limitation may be exceeded only for the fiscal year in which the emergency is declared; in the next and subsequent fiscal years the tax limitation of Section 25 of this Article shall again take effect. In no event shall any part of the amount representing a refund under Section 25 of this Article be the subject of any emergency request.
Sec. 27: No expenses of state government shall be incurred for any fiscal year which exceed in amount the revenue limitations imposed by Sections 25 and 26 of this Article.
Sec. 28: A new program or an increase in the level of service under an existing program shall not be required by the Legislature of units of local government, of authorities created by the state, or of political subdivisions of the state, unless a state appropriation is made and disbursed sufficient to pay the local unit of government, authority or political subdivision for the costs of the program. The provisions of this Section shall not apply to costs incurred pursuant to Article VI, Section 18.
Sec. 29: The proportion of state revenue paid to all units of local government, authorities created by the state, and political subdivisions of the state, taken as a group, shall not be reduced below that proportion in effect when this Section is adopted.
Sec. 30: Units of local government, authorities created by the state, and political subdivisions of the state are hereby prohibited from levying any tax not in existence when this Section is ratified or from increasing the rate or base of existing taxes beyond levels authorized when this Section is ratified, without the approval of a majority of the qualified electors of that local unit, authority or political subdivision voting thereon. The limitations of this Section shall not apply to taxes imposed for the payment of principal and interest on bonds or other evidence of indebtedness or for the payment of assessments or contract obligations in anticipation of which bonds are issued.
Sec. 31: The Legislature shall implement the provisions of Sections 25 through 30, inclusive, of this Article.
