Article IV
Sec. 41: The legislature may authorize lotteries and permit the sale of lottery tickets in the manner provided by law. Beginning October 1, 1989, 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.
Article IX
Sec. 8: Except as provided in this section for the purposes provided by 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.
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 1⁄5.Beginning January 1, 1990, the legislature shall impose the sales tax on retailers at an additional rate of .5% of their gross taxable sales of tangible personal property not exempt by law and the use tax at an additional rate of .5%. The allocation of sales tax revenue required by sections 9 and 10 of this article does not apply to the proceeds from the levy of the additional .5% rate of the sales tax. The proceeds of the additional .5% rate of the sales and use taxes shall be dedicated to the state school aid fund established in section 11 of this article and shall be used only for aid to school districts.
Sec. 10:
One-eighthFifteen percent of all taxes imposed on retailers on taxable sales at retail of tangible personal property, other than any sales tax imposed at a rate in excess of 4% provided for in section 8 of this article, 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, except as provided in this section, shall be used exclusively for aid to school districts
, higher educationand school employees’ retirement systems, as provided by law.One-half of all taxes imposedAll 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; 60% of the proceeds of the sales tax 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 a rate in excess of 4% provided for in section 8 of this article; and other tax revenues provided for by this section or 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.In addition to other revenues dedicated under this section, beginning October 1, 1989, 25% of the proceeds of the sales tax imposed at a rate of 4% other than the sales tax described under section 9 of this article; the proceeds from the first 4% of the rate of the excise tax on spirits, as defined by law as of May 1, 1989; the proceeds of the first mill of the excise tax on cigarettes, as defined by law as of May 1, 1989; beginning January 1, 1990, 5% of the proceeds of the use tax imposed at a rate of 4%; and the portion of the proceeds of the industrial facilities tax, the commercial facilities tax, and the technology park facilities tax required by law to be paid to the state shall be dedicated to the state school aid fund.
Of the revenues dedicated to the state school aid fund, not more than 5% of the proceeds of the use tax imposed at a rate of 4% may be used for programs administered by the department of education for the benefit of local school districts as provided by law.
A refund pursuant to section 26 of this article, to the extent not greater than the proportionate share of relevant revenue, may be made using funds dedicated to the school aid fund.
