HB 4369, As Passed Senate

HB-4369, As Passed Senate, June 28, 2007

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4369

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending section 1211 (MCL 380.1211), as amended by 2006 PA 648.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1211. (1) Except as otherwise provided in this section

and section 1211c, the board of a school district shall levy not

more than 18 mills for school operating purposes or the number of

mills levied in 1993 for school operating purposes, whichever is

less. A principal residence, qualified agricultural property, ~~and~~

qualified forest property, and industrial personal property are

exempt from the mills levied under this subsection except for the

number of mills by which that exemption is reduced under this

subsection. The board of a school district that had a foundation

allowance calculated under section 20 of the state school aid act

of 1979, MCL 388.1620, for the 1994-95 state fiscal year of more

than $6,500.00, may reduce the number of mills from which a

principal residence, qualified agricultural property, ~~and~~ qualified

forest property, and industrial personal property are exempted

under this subsection by up to the number of mills, as certified

under section 1211a, required to be levied on a principal

residence, qualified agricultural property, ~~and~~ qualified forest

property, and industrial personal property for the school

district's combined state and local revenue per membership pupil

for the school fiscal year ending in 1995 to be equal to the school

district's foundation allowance for the state fiscal year ending in

1995, and the board also may levy in 1994 or a succeeding year that

number of mills for school operating purposes on a principal

residence, qualified agricultural property, ~~and~~ qualified forest

property, and industrial personal property.

(2) Subject to subsection (3), if the department of treasury

determines that the maximum number of mills allowed to be levied

under subsection (1) on all classes of property was not sufficient

for a school district's combined state and local revenue per

membership pupil for the school fiscal year ending in 1995 to be

equal to the school district's foundation allowance for that school

fiscal year, the board of the school district may levy in 1994 or a

succeeding year additional mills uniformly on all property up to

the number of mills required for the school district's combined

state and local revenue per membership pupil for the school fiscal

year ending in 1995 to be equal to the school district's foundation

allowance for the state fiscal year ending in 1995. However, the

board of a school district described in this subsection, by board

resolution, may elect to exempt each principal residence and all

qualified agricultural property, ~~and~~ qualified forest property, and

industrial personal property located in the school district from

some or all of the mills that the board is authorized to levy under

this subsection.

(3) After 1994, the number of mills a school district may levy

under this section on any class of property shall not exceed the

lesser of the number of mills the school district was certified by

the department of treasury under section 1211a to levy on that

class of property under this section in 1994 or the number of mills

required to be levied on that class of property under this section

to ensure that the increase from the immediately preceding state

fiscal year in the school district's combined state and local

revenue per membership pupil, calculated as if the school district

had levied the maximum number of mills the school district was

allowed to levy under this section regardless of the number of

mills the school district actually levied, does not exceed the

lesser of the dollar amount of the increase in the basic foundation

allowance under section 20 of the state school aid act of 1979, MCL

388.1620, from the immediately preceding state fiscal year or the

percentage increase in the general price level in the immediately

preceding calendar year. If the number of mills a school district

is allowed to levy under this section in a year after 1994 is less

than the number of mills the school district was allowed to levy

under this section in the immediately preceding year, any reduction

required by this subsection in the school district's millage rate

shall be calculated by first reducing the number of mills the

school district is allowed to levy under subsection (2) and then

increasing the number of mills from which a principal residence,

qualified agricultural property, ~~and~~ qualified forest property, and

industrial personal property are exempted under subsection (1).

(4) Commercial personal property is exempt from 12 of the

mills levied under this section. However, if the number of mills

from which industrial personal property is exempted for a specific

school district is reduced under this section, then the number of

mills from which commercial personal property is exempted for that

school district shall be reduced by that same number of mills.

(5) ~~(4)~~ Millage levied under this section must be approved by

the school electors. For the purposes of this section, millage

approved by the school electors before January 1, 1994 for which

the authorization has not expired is considered to be approved by

the school electors.

(6) ~~(5)~~ If a school district levies millage for school

operating purposes that is in excess of the limits of this section,

the amount of the resulting excess tax revenue shall be deducted

from the school district's next regular tax levy.

(7) ~~(6)~~ If a school district levies millage for school

operating purposes that is less than the limits of this section,

the board of the school district may levy at the school district's

next regular tax levy an additional number of mills not to exceed

the additional millage needed to make up the shortfall.

(8) ~~(7)~~ A school district shall not levy mills allocated under

the property tax limitation act, 1933 PA 62, MCL 211.201 to

211.217a, other than mills allocated to a school district of the

first class for payment to a public library commission under

section 11(4) of the property tax limitation act, 1933 PA 62, MCL

211.211, after 1993.

(9) ~~(8)~~ As used in this section:

(a) "Combined state and local revenue per membership pupil"

means that term as defined in section 20 of the state school aid

act of 1979, MCL 388.1620.

(b) "Commercial personal property" means property classified

as commercial personal property under section 34c of the general

property tax act, 1893 PA 206, MCL 211.34c.

foundation allowance as calculated under section 20 of the state

school aid act of 1979, MCL 388.1620.

(d) ~~(c)~~ "General price level" means that term as defined in

section 33 of article IX of the state constitution of 1963.

(e) "Industrial personal property" means property classified

as industrial personal property under section 34c of the general

property tax act, 1893 PA 206, MCL 211.34c.

(f) ~~(d)~~ "Membership" means that term as defined in section 6

of the state school aid act of 1979, MCL 388.1606.

(g) ~~(e)~~ "Owner", "person", "principal residence", and

"qualified agricultural property" mean those terms as defined in

section 7dd of the general property tax act, 1893 PA 206, MCL

211.7dd.

(h) ~~(f)~~ "Qualified forest property" means that term as defined

in section 7jj of the general property tax act, 1893 PA 206, MCL

211.7jj[1].

(i) ~~(g)~~ "School operating purposes" includes expenditures for

furniture and equipment, for alterations necessary to maintain

school facilities in a safe and sanitary condition, for funding the

cost of energy conservation improvements in school facilities, for

deficiencies in operating expenses for the preceding year, and for

paying the operating allowance due from the school district to a

joint high school district in which the school district is a

participating school district under former part 3a. Taxes levied

for school operating purposes do not include any of the following:

(i) Taxes levied by a school district for operating a community

college under part 25.

(ii) Taxes levied under section 1212.

(iii) Taxes levied under section 1356 for eliminating an

operating deficit.

(iv) Taxes levied for operation of a library under section 1451

or for operation of a library established pursuant to 1913 PA 261,

MCL 397.261 to 397.262, that were not included in the operating

millage reported by the district to the department as of April 1,

1993. However, a district may report to the department not later

than April 1, 1994 the number of mills it levied in 1993 for a

purpose described in this subparagraph that the school district

does not want considered as operating millage and then that number

of mills is excluded under this section from taxes levied for

school operating purposes.

(v) Taxes paid by a school district of the first class to a

public library commission pursuant to section 11(4) of the property

tax limitation act, 1933 PA 62, MCL 211.211.

(vi) Taxes levied under former section 1512 for operation of a

community swimming pool. In addition, if a school district included

the millage it levied in 1993 for operation of a community swimming

pool as part of its operating millage reported to the department

for 1993, the school district may report to the department not

later than June 17, 1994 the number of mills it levied in 1993 for

operation of a community swimming pool that the school district

does not want considered as operating millage and then that number

of mills is excluded under this section from taxes levied for

school operating purposes.

Enacting section 1. This amendatory act applies to taxes

levied after December 31, 2007.

Enacting section 2. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) Senate Bill No. 94.

(b) House Bill No. 4370.

(d) House Bill No. 4372.