September 12, 2007, Introduced by Rep. Young and referred to the Committee on Tax Policy.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 31 of article IX, to
limit the application of the requirement for a millage rollback
under certain circumstances.
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 application of the requirement
for a millage rollback under certain circumstances, is proposed,
agreed to, and submitted to the people of the state:
ARTICLE IX
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.
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 on
contract obligations in anticipation of which bonds are issued
which were authorized prior to the effective date of this
amendment, or for a millage assessed for the purpose of creating a
sinking fund to be used for the purchase of real estate for sites
for, and the construction or repair of, school buildings.
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.