September 12, 2007, Introduced by Rep. Cushingberry.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 8 of article IX, to
increase the rate of the sales tax and use tax in this state.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to increase the rate of the sales tax and use
tax in this state, is proposed, agreed to, and submitted to the
people of the state:
ARTICLE IX
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 May 1, 1994, the sales tax shall be imposed on
retailers at an additional rate of 2% of their gross taxable sales
of tangible personal property not exempt by law and the use tax at
an additional rate of 2%. The proceeds of the sales and use taxes
imposed at the additional rate of 2% shall be deposited in the
state school aid fund established in section 11 of this article.
The allocation of sales tax revenue required or authorized by
sections 9 and 10 of this article does not apply to the revenue
from the sales tax imposed at the additional rate of 2%.
Beginning March 1, 2008, the sales tax shall be imposed on
retailers at an additional rate of 1% of their gross taxable sales
of tangible personal property not exempt by law and the use tax at
an additional rate of 1%. The proceeds of the sales and use taxes
imposed at the additional rate of 1% shall be deposited in the
general fund of this state to pay the expenses of state government.
The allocation of sales tax revenue required or authorized by
sections 9, 10, and 11 of this article does not apply to the
revenue from the sales tax imposed at the additional rate of 1%.
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.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at a special election to be
held on January 15, 2008 in the manner provided by law.