September 20, 2006, Introduced by Reps. Gaffney, Kahn, Hune, Hildenbrand, Marleau and Ward and referred to the Committee on Tax Policy.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 3 of article IX, to limit
the increase in property's taxable value following a transfer of
ownership.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to limit the increase in property's taxable
value following a transfer of ownership, is proposed, agreed to,
and submitted to the people of the state:
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 except for taxes levied for school operating
purposes. 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 1995 and each year
thereafter, the legislature shall provide that the taxable value 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 percent, whichever is less until ownership of
the
parcel of property is transferred.
When For taxes levied in
1995 through 2006, 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. For taxes levied
in 2007 and each year thereafter, when ownership of the parcel of
property is transferred as defined by law, the parcel shall be
assessed at an amount not greater than 110 percent of the parcel's
taxable value immediately preceding the transfer of ownership. 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. A law that increases the statutory limits in effect as of
February 1, 1994 on the maximum amount of ad valorem property taxes
that may be levied for school district operating purposes requires
the approval of 3/4 of the members elected to and serving in the
Senate and in the House of Representatives.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at the next general election
in the manner provided by law.