HOUSE BILL No. 4560

 

April 14, 2011, Introduced by Reps. Meadows, MacMaster, Bauer, Ananich, Barnett, Hobbs, Switalski, Heise, Oakes and Brown and referred to the Committee on Tax Policy.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 1212 (MCL 380.1212), as amended by 2003 PA 299.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1212. (1) If Subject to subsection (6), if approved by

 

the school electors of the school district, the board of a school

 

district may levy a tax of not to exceed 5 mills on the state

 

equalized valuation taxable value of the real and personal property

 

of the school district each year for a period of not to exceed 20

 

years, 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, for the purchase or major maintenance

 

of school buses, or for the acquisition or upgrading of technology.

 


The maximum time period for a sinking fund tax levy is as

 

prescribed in subsection (6). The sinking fund tax levy is subject

 

to the 15 mill tax limitation provisions of section 6 of article IX

 

of the state constitution of 1963 and the property tax limitation

 

act, 1933 PA 62, MCL 211.201 to 211.217a.

 

     (2) A school district that levies a sinking fund tax under

 

this section shall have an independent audit of its sinking fund

 

conducted annually, including a review of the uses of the sinking

 

fund, and shall submit the audit report to the department of

 

treasury. If the department of treasury determines from the audit

 

report that the sinking fund has been used for a purpose other than

 

those authorized for the sinking fund under this section, the

 

school district shall repay the misused funds to the sinking fund

 

from the school district's operating funds and shall not levy a

 

sinking fund tax under this section after the date the department

 

of treasury makes that determination.

 

     (3) (2) The proposition of levying a sinking fund tax shall be

 

submitted to the school electors of the school district at a

 

regular or special school election. This election shall be held on

 

either the May regular election date or the November regular

 

election date, as provided under section 641 of the Michigan

 

election law, 1954 PA 116, MCL 168.641.

 

     (4) (3) The question of levying taxes for the purpose of

 

creating a sinking fund shall be by ballot in substantially the

 

following form:

 

 

 

     "Shall _______________________________ levy _______ mills

            (legal name of school district)


 

to create a sinking fund for the purpose of _____________________

 

_________________________________________________________________

 

for a period of _____ years?

 

     Yes ( )

 

     No  ( )".

 

 

 

     (5) (4) For the purposes of this section, millage approved by

 

the school electors before December 1, 1993 for which the

 

authorization has not expired is considered to be approved by the

 

school electors.

 

     (6) A sinking fund tax levied under this section for creating

 

a sinking fund to be used for the purchase of real estate for sites

 

for, and the construction or repair of, school buildings may be

 

levied each year for a period of not to exceed 20 years. A sinking

 

fund tax levied under this section for creating a sinking fund to

 

be used for the purchase or major maintenance of school buses or

 

for the acquisition or upgrading of technology may be levied each

 

year for a period of not to exceed 10 years.

 

     (7) As used in this section, "technology" means that term as

 

defined in section 1351a.