Article IV
Sec. 41: The legislature may authorize lotteries and permit the sale of lottery tickets in the manner provided by law. Net revenues received by the state from the operation of lotteries shall be deposited in the state school aid fund.
Article IX
Sec. 3: (1) 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 percent50%;, and for a system of equalization of assessments. For purposes of assessing agricultural and forestry property, true cash value may be based, as provided by law, on its use as agricultural and forestry property.Effective for taxes levied after December 31, 1980, 50% of the ad valorem property tax levy for operating purposes but not to exceed a maximum of not less than $1,400.00, as this maximum shall be adjusted in accordance with this section, shall be exempt from collection on the homestead of an individual who is a resident of this state. This exemption shall be applied after the exemption provided in section 31 of this article is applied. Effective for the 1981 tax year and each tax year thereafter, 50% of the resident and nonresident local individual income taxes shall be exempt from collection. However, the legislature shall establish a maximum amount of local individual income taxes which shall be exempt from collection which maximum shall not be less than $100.00 for each 1⁄2% levy of local income taxes. The maximum amount of ad valorem property taxes that may be exempt from collection under this section shall be adjusted annually for ad valorem property tax levies in the 1982 calendar year and for ad valorem property tax levies in each calendar year thereafter pursuant to law by the same percentage as the percentage increase or decrease in the state equalized value of residential and agricultural real property in this state, excluding new construction and improvements. 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.
(2) The state shall reimburse units of local government in the manner provided by law for not less than 100% of the revenues not collectible for ad valorem property tax levies in 1981 and each year thereafter because of the exemption from collection of ad valorem taxes for operating purposes on the homestead of a resident of this state as provided by this section. The legislature shall reimburse a unit of local government for 100% of the amount of revenues not collectible by a unit of local government because of the exemption for local income taxes provided in this section. Reimbursements for the exemptions provided in this section which are returned to units of local government shall be excluded from computations to determine the proportion of total state spending paid to all units of local government as annually required by section 30 of this article. Reimbursements to units of local government for the exemptions provided in this section shall not be considered a transfer of responsibility for funding a program as defined in section 26 of this article. An amount equal to the payments made to units of local government for reimbursement of the exemptions provided in this section shall be excluded from the annual determination of total state revenues for purposes of section 26 of this article, and shall not be considered an expense of state government for purposes of section 28 of this article.
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 July 1, 1981, the Legislature shall impose additional sales and use taxes at a rate of 1.5% on the sale or use of tangible personal property, the revenue from which shall be used exclusively for purposes of reimbursing units of local government for the revenues not collectible because of the exemptions provided in section 3 of this article. The revenue from this additional sales tax shall not be included within the allocation made pursuant to sections 10 and 11 of this article.
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.
To compensate units of government other than the state for loss of revenue resulting from repeal of the sales tax on food and prescription drugs, each present allocation of sales tax revenue to such units shall be increased by
1⁄5one-fifth.Sec. 30: The proportion of total state spending paid to all units of Local Government, taken as a group, shall not be reduced below that proportion in effect in fiscal year 1978-79. As used in this section, total state spending shall not include transfers to or from a counter-cyclical budget and economic stabilization fund created pursuant to law.
Sec. 31: Units of Local Government are hereby prohibited from levying any tax not authorized by law or charter when this section is ratified or from increasing the rate of an existing tax above that rate authorized by law or charter when this section is ratified, without the approval of a majority of the qualified electors of that unit of Local Government voting thereon. If the definition of the base of an existing tax is broadened, the maximum authorized rate of taxation on the new base in each unit of Local Government shall be reduced to yield the same estimated gross revenue as on the prior base.
If the assessed valuation of property as finally equalized, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the General Price Level from the previous year, the maximum authorized rate applied thereto in each unit of Local Government shall be reduced to yield the same gross revenue from existing property, adjusted for changes in the General Price Level, as could have been collected at the existing authorized rate on the prior assessed value.Effective for taxes levied after December 31, 1980, a percentage of the ad valorem property tax levy for operating purposes shall be exempt from collection on each class of property. The percentage exemption shall be separately calculated and applied for the levy of each unit of Local Government on each class of property, but shall not apply to revenue generated by the class of property from the levy of an increased number of mills over the millage rate levied by the unit of Local Government in the previous year. This exemption shall limit the annual increase in revenues generated from ad valorem property tax levies by the unit of Local Government on the class of property of the unit of Local Government, excluding new construction and improvement, to 6%, as if the current year’s millage rate, excluding the increased number of mills over the millage rate levied in the previous year, had been levied in the previous year. A millage rate shall not be increased above the rate levied in the previous year without approval of a majority of the qualified electors of the unit of Local Government voting thereon. The 6% limit may be increased or waived by approval of a majority of the qualified electors of the unit of Local Government 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
onor contract obligations in anticipation of which bonds are issued which were authorized prior tothe effective date of this amendmentDecember 23, 1978.
