December 18, 2014, Introduced by Rep. Haveman.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending sections 8, 10, and 11 of article
IX, to increase the maximum sales tax rate and use tax rate
permitted under law, to exempt gasoline and diesel fuel from the
sales tax and use tax, to dedicate a portion of sales tax revenue
and use tax revenue, and to revise the permissible uses for
payments from the school aid fund.
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 maximum sales tax rate and
use tax rate permitted under law, to exempt gasoline and diesel
fuel from the sales tax and use tax, to dedicate a portion of sales
tax revenue and use tax revenue, and to revise the permissible uses
for payments from the school aid fund, 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%
5% 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%.
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.
No sales tax or use tax shall be charged or collected from and
after October 1, 2015 on the sale or use of gasoline or diesel fuel
used to operate a motor vehicle on the public roads or highways of
this state.
Sec. 10. Fifteen percent of all taxes imposed on retailers on
taxable sales at retail of tangible personal property at a rate of
not
more than 4% 5% shall be used exclusively for assistance to
townships, cities and villages, on a population basis as provided
by law. In determining population the legislature may exclude any
portion of the total number of persons who are wards, patients or
convicts in any tax supported institution.
Sec. 11. There shall be established a state school aid fund
which
shall be used exclusively for aid to school districts, higher
education,
public community colleges,
public career and technical
education programs, scholarships for students attending either
public community colleges or public career and technical education
programs, and school employees' retirement systems, as provided by
law.
Sixty percent of all taxes imposed at a rate of 4% not more
than 5% on retailers on taxable sales at retail of tangible
personal property, 100% of the proceeds of the sales and use taxes
imposed at the additional rate of 2% provided for in section 8 of
this article, and other tax revenues provided by law, shall be
dedicated to this fund. In addition, an amount equal to 12.3% of
the use tax imposed at a rate of not more than 5% shall be
dedicated to this fund as provided by law. Payments from this fund
shall be made in full on a scheduled basis, as provided by law.
Beginning in the 1995-96 state fiscal year and each state fiscal
year after 1995-96, the state shall guarantee that the total state
and local per pupil revenue for school operating purposes for each
local school district shall not be less than the 1994-95 total
state and local per pupil revenue for school operating purposes for
that local school district, as adjusted for consolidations,
annexations, or other boundary changes. However, this guarantee
does not apply in a year in which the local school district levies
a millage rate for school district operating purposes less than it
levied in 1994.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at a special election to be
held at the same time as the May 5, 2015 regular election in the
manner provided by law.