SENATE BILL No. 1411

 

 

July 1, 2010, Introduced by Senator VAN WOERKOM and referred to the Committee on Education.

 

 

 

     A bill to amend 1993 PA 331, entitled

 

"State education tax act,"

 

by amending section 3 (MCL 211.903), as amended by 2007 PA 38.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) Beginning in 1994, except as otherwise provided in

 

subsections (2) and (3) this section, there is levied a state

 

education tax on all property not exempt by law from ad valorem

 

property taxes or not subject to a tax under 1905 PA 282, MCL 207.1

 

to 207.21, at a rate of 6 mills.

 

     (2) In 2003 only, there is levied a state education tax on all

 

property not exempt by law from ad valorem property taxes or not

 

subject to a tax under 1905 PA 282, MCL 207.1 to 207.21, at the

 

rate of 5 mills.

 


     (3) For taxes levied after December 31, 2007, personal

 

property classified under section 34c of the general property tax

 

act, 1893 PA 206, MCL 211.34c, as industrial personal property is

 

exempt from the tax levied under this act.

 

     (4) For taxes levied after December 31, 2010, if 2 eligible

 

intermediate school districts reorganize by combining under section

 

701 of the revised school code, 1976 PA 451, MCL 380.701, by

 

annexation under section 702 of the revised school code, 1976 PA

 

451, MCL 380.702, or by disorganization under section 703 of the

 

revised school code, 1976 PA 451, MCL 380.703, for property located

 

in the eligible intermediate school district that levied the lower

 

millage rate before the reorganization, the tax under this act

 

shall be reduced in the following manner:

 

     (a) In the first year after the reorganization, by an amount

 

equal to the difference between the millage levied by the

 

intermediate school district before reorganization and after

 

reorganization or 6 mills, whichever is less.

 

     (b) In the second year after reorganization, by an amount

 

equal to 75% of the difference between the millage levied by the

 

intermediate school district before reorganization and after

 

reorganization or 6 mills, whichever is less.

 

     (c) In the third year after reorganization, by an amount equal

 

to 50% of the difference between the millage levied by the

 

intermediate school district before reorganization and after

 

reorganization or 6 mills, whichever is less.

 

     (d) In the fourth year after reorganization, by an amount

 

equal to 25% of the difference between the millage levied by the

 


intermediate school district before reorganization and after

 

reorganization or 6 mills, whichever is less.

 

     (5) As used in this section, "eligible intermediate school

 

district" means an intermediate school district in which are

 

located not more than 4 local school districts.