September 15, 2009, Introduced by Reps. Bettie Scott, Lemmons, Jackson, Johnson, Durhal, Leland, Bledsoe, Young, Geiss and Nathan and referred to the Committee on Education.
A bill to amend 1933 PA 62, entitled
"Property tax limitation act,"
by amending sections 2 and 11 (MCL 211.202 and 211.211), as amended
by 1994 PA 190.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Local unit" means counties, townships, villages, cities,
a first-class school district, a school district with at least
60,000 but less than 100,000 pupils in membership, community
college districts, intermediate school districts, and all other
divisions, districts, and organizations of government that are or
may be established by law and that have the power to levy taxes
against property located within their respective areas, except
villages and cities for which there are provisions in their
charters or general law fixing maximum limits on the power to levy
taxes against property for purposes as authorized by law to be
supported under the municipal budget and school districts other
than a first class school district or a school district with at
least 60,000 but less than 100,000 pupils in membership.
(b) "Membership" means that term as defined in the revised
school code, 1976 PA 451, MCL 380.1 to 380. 1852.
(c)
(b) "Municipal corporation" means villages and
cities.
(d) (c)
"Board" means the county
tax allocation board created
by section 5.
Sec. 11. (1) The board shall examine the budgets and
statements of local units that are filed with it, and shall
determine the tax rates, exclusive of debt service tax rates, that
are required pursuant to its proposed budget. The board may request
additional statements and examine financial records to verify the
tax rate request of a local unit. For the purpose of determining
its tax rate, a local unit shall submit a statement accounting for
the amount of money contained in the budget stabilization fund. In
submitting the budget to the board, the amount contained in the
budget stabilization fund shall not be a factor used by the board
in determination of the tax rate, if that amount does not exceed
the permitted level of funding for that fund as provided by law.
(2) If the board finds that the total of all tax rates that
are required to be levied on property located within the area of a
local unit does not exceed the net limitation tax rate, the board
shall approve the tax rates as maximum tax rates, except tax rates
required to be determined under subsections (3) to (8).
(3) If the board finds that the total of all tax rates that
are required to be levied on property located within the area of a
local unit exceeds the net limitation tax rate, the board shall
proceed according to subsections (4), (5), and (6).
(4) The board shall approve minimum tax rates for the county
if other than a charter county, of 3 mills; for community college
districts organized after April 15, 1957, of 1/4 of 1 mill; for
intermediate school districts, 1/10 of 1 mill; for townships other
than charter townships, of 1 mill; and to a first-class school
district or a school district with at least 60,000 but less than
100,000 pupils in membership to be collected and paid by the school
district to the public library commission existing in the district
for services of an educational nature rendered by the library to
the residents of that school district, of .64 mills. If the
community college district votes to increase the total tax
limitation as provided in section 6 of article IX of the state
constitution of 1963, the board, during the period the increase is
in effect, shall not allocate the 1/4 of 1 mill minimum tax rate to
the community college district, but the community college district
shall raise all of its tax revenues from the amount of increase so
voted. A local unit shall not be allowed a tax rate in excess of
what is required pursuant to its proposed budget.
(5) The board shall divide the balance of the net limitation
tax rate between all local units after due consideration of the
needs of the several local units, the importance to the public of
functions of local units that may have to be curtailed, the need of
local units for construction or repair of public works, the
proposed or accomplished transfer of functions from 1 local unit to
others, and other facts or matters concerning the operations of
local units that the board considers relevant. A local unit shall
not be allowed a tax rate in excess of what is required pursuant to
its proposed budget. The board shall approve a maximum limitation
tax rate to be levied from the tax rate fixed by section 6 of
article IX of the state constitution of 1963 without approval of
the voters for each local unit consisting of the minimum tax rate,
if any, provided in subsection (4), added to the tax rate
determined under this subsection.
(6) The board shall approve a maximum tax rate for each local
unit that votes to increase the total tax rate limitation as
provided in the last sentence of the first paragraph of section 6
of article IX of the state constitution of 1963, and as provided
for in this act. The maximum tax rate for each local unit, with
other maximum tax rates that may be levied within the area of the
local unit, shall not exceed the limitation voted. In approving a
maximum limitation tax rate under subsection (5) for the various
local units, the board shall not take into consideration any
increase of the tax rate limitation voted by a local unit.
(7) The board shall not approve a tax rate for a local unit
that does not submit a budget or statements as required.
(8) The approval by the board of a maximum tax rate for a
local unit, which will necessitate a reduction in the total
proposed expenditures as listed in the budget of the local unit,
shall not be construed as a reduction or elimination of any
specific items in the list of proposed expenditures, and the board
may not reduce or eliminate those specific items. A local unit, in
the budget of which a reduction in the total proposed expenditure
is necessitated by the action of the board, or of the state tax
commission on an appeal, may revise its budget and amend and alter
its tax levy to the extent made necessary by that action. Budgets
previously prepared to be met from taxes levied pursuant to this
act may likewise be revised.
(9) Beginning in 1994, the number of mills that may be
allocated by the board under this section shall be reduced by the
number of mills in excess of the mills levied under the state
education
tax act, Act No. 331 of the Public Acts of 1993, being
sections
211.901 to 211.906 of the Michigan Compiled Laws, 1993 PA
331, MCL 211.901 to 211.906, allocated to a local school district,
other than to a first class school district or a school district
with at least 60,000 but less than 100,000 pupils in membership for
payment to the public library commission existing in the district,
for school district operating purposes in 1993 and the board shall
not allocate mills to a local school district for school district
operating purposes.