HOUSE BILL No. 6483

 

September 18, 2008, Introduced by Reps. Moore, Calley, DeRoche, Pavlov, Green, Horn, Opsommer and Hansen and referred to the Committee on Tax Policy.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 1211 (MCL 380.1211), as amended by 2007 PA 37.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1211. (1) Except as otherwise provided in this section

 

and section 1211c, the board of a school district shall levy not

 

more than 18 mills for school operating purposes or the number of

 

mills levied in 1993 for school operating purposes, whichever is

 

less. A principal residence, qualified agricultural property,

 

qualified forest property, qualified foreclosed property, and

 

industrial personal property are exempt from the mills levied under

 

this subsection except for the number of mills by which that

 

exemption is reduced under this subsection. The board of a school

 


district that had a foundation allowance calculated under section

 

20 of the state school aid act of 1979, MCL 388.1620, for the 1994-

 

95 state fiscal year of more than $6,500.00, may reduce the number

 

of mills from which a principal residence, qualified agricultural

 

property, qualified forest property, qualified foreclosed property,

 

and industrial personal property are exempted under this subsection

 

by up to the number of mills, as certified under section 1211a,

 

required to be levied on a principal residence, qualified

 

agricultural property, qualified forest property, qualified

 

foreclosed property, and industrial personal property for the

 

school district's combined state and local revenue per membership

 

pupil for the school fiscal year ending in 1995 to be equal to the

 

school district's foundation allowance for the state fiscal year

 

ending in 1995, and the board also may levy in 1994 or a succeeding

 

year that number of mills for school operating purposes on a

 

principal residence, qualified agricultural property, qualified

 

forest property, qualified foreclosed property, and industrial

 

personal property.

 

     (2) Subject to subsection (3), if the department of treasury

 

determines that the maximum number of mills allowed to be levied

 

under subsection (1) on all classes of property was not sufficient

 

for a school district's combined state and local revenue per

 

membership pupil for the school fiscal year ending in 1995 to be

 

equal to the school district's foundation allowance for that school

 

fiscal year, the board of the school district may levy in 1994 or a

 

succeeding year additional mills uniformly on all property up to

 

the number of mills required for the school district's combined

 


state and local revenue per membership pupil for the school fiscal

 

year ending in 1995 to be equal to the school district's foundation

 

allowance for the state fiscal year ending in 1995. However, the

 

board of a school district described in this subsection, by board

 

resolution, may elect to exempt each principal residence and all

 

qualified agricultural property, qualified forest property,

 

qualified foreclosed property, and industrial personal property

 

located in the school district from some or all of the mills that

 

the board is authorized to levy under this subsection.

 

     (3) After 1994, the number of mills a school district may levy

 

under this section on any class of property shall not exceed the

 

lesser of the number of mills the school district was certified by

 

the department of treasury under section 1211a to levy on that

 

class of property under this section in 1994 or the number of mills

 

required to be levied on that class of property under this section

 

to ensure that the increase from the immediately preceding state

 

fiscal year in the school district's combined state and local

 

revenue per membership pupil, calculated as if the school district

 

had levied the maximum number of mills the school district was

 

allowed to levy under this section regardless of the number of

 

mills the school district actually levied, does not exceed the

 

lesser of the dollar amount of the increase in the basic foundation

 

allowance under section 20 of the state school aid act of 1979, MCL

 

388.1620, from the immediately preceding state fiscal year or the

 

percentage increase in the general price level in the immediately

 

preceding calendar year. If the number of mills a school district

 

is allowed to levy under this section in a year after 1994 is less

 


than the number of mills the school district was allowed to levy

 

under this section in the immediately preceding year, any reduction

 

required by this subsection in the school district's millage rate

 

shall be calculated by first reducing the number of mills the

 

school district is allowed to levy under subsection (2) and then

 

increasing the number of mills from which a principal residence,

 

qualified agricultural property, qualified forest property,

 

qualified foreclosed property, and industrial personal property are

 

exempted under subsection (1).

 

     (4) Commercial personal property is exempt from 12 of the

 

mills levied under this section. However, if the number of mills

 

from which industrial personal property is exempted for a specific

 

school district is reduced under this section, then the number of

 

mills from which commercial personal property is exempted for that

 

school district shall be reduced by that same number of mills.

 

     (5) Millage levied under this section must be approved by the

 

school electors. For the purposes of this section, millage approved

 

by the school electors before January 1, 1994 for which the

 

authorization has not expired is considered to be approved by the

 

school electors.

 

     (6) If a school district levies millage for school operating

 

purposes that is in excess of the limits of this section, the

 

amount of the resulting excess tax revenue shall be deducted from

 

the school district's next regular tax levy.

 

     (7) If a school district levies millage for school operating

 

purposes that is less than the limits of this section, the board of

 

the school district may levy at the school district's next regular

 


tax levy an additional number of mills not to exceed the additional

 

millage needed to make up the shortfall.

 

     (8) A school district shall not levy mills allocated under the

 

property tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a,

 

other than mills allocated to a school district of the first class

 

for payment to a public library commission under section 11(4) of

 

the property tax limitation act, 1933 PA 62, MCL 211.211, after

 

1993.

 

     (9) As used in this section:

 

     (a) "Combined state and local revenue per membership pupil"

 

means that term as defined in section 20 of the state school aid

 

act of 1979, MCL 388.1620.

 

     (b) "Commercial personal property" means property classified

 

as commercial personal property under section 34c of the general

 

property tax act, 1893 PA 206, MCL 211.34c.

 

     (c) "Foundation allowance" means a school district's

 

foundation allowance as calculated under section 20 of the state

 

school aid act of 1979, MCL 388.1620.

 

     (d) "General price level" means that term as defined in

 

section 33 of article IX of the state constitution of 1963.

 

     (e) "Industrial personal property" means property classified

 

as industrial personal property under section 34c of the general

 

property tax act, 1893 PA 206, MCL 211.34c.

 

     (f) "Membership" means that term as defined in section 6 of

 

the state school aid act of 1979, MCL 388.1606.

 

     (g) "Owner", "person", "principal residence", and "qualified

 

agricultural property" mean those terms as defined in section 7dd

 


of the general property tax act, 1893 PA 206, MCL 211.7dd.

 

     (h) "Qualified foreclosed property" means that term as defined

 

in section 7qq of the general property tax act, 1893 PA 206, MCL

 

211.7qq.

 

     (i) (h) "Qualified forest property" means that term as defined

 

in section 7jj of the general property tax act, 1893 PA 206, MCL

 

211.7jj[1].

 

     (j) (i) "School operating purposes" includes expenditures for

 

furniture and equipment, for alterations necessary to maintain

 

school facilities in a safe and sanitary condition, for funding the

 

cost of energy conservation improvements in school facilities, for

 

deficiencies in operating expenses for the preceding year, and for

 

paying the operating allowance due from the school district to a

 

joint high school district in which the school district is a

 

participating school district under former part 3a. Taxes levied

 

for school operating purposes do not include any of the following:

 

     (i) Taxes levied by a school district for operating a community

 

college under part 25.

 

     (ii) Taxes levied under section 1212.

 

     (iii) Taxes levied under section 1356 for eliminating an

 

operating deficit.

 

     (iv) Taxes levied for operation of a library under section 1451

 

or for operation of a library established pursuant to 1913 PA 261,

 

MCL 397.261 to 397.262, that were not included in the operating

 

millage reported by the district to the department as of April 1,

 

1993. However, a district may report to the department not later

 

than April 1, 1994 the number of mills it levied in 1993 for a

 


purpose described in this subparagraph that the school district

 

does not want considered as operating millage and then that number

 

of mills is excluded under this section from taxes levied for

 

school operating purposes.

 

     (v) Taxes paid by a school district of the first class to a

 

public library commission pursuant to section 11(4) of the property

 

tax limitation act, 1933 PA 62, MCL 211.211.

 

     (vi) Taxes levied under former section 1512 for operation of a

 

community swimming pool. In addition, if a school district included

 

the millage it levied in 1993 for operation of a community swimming

 

pool as part of its operating millage reported to the department

 

for 1993, the school district may report to the department not

 

later than June 17, 1994 the number of mills it levied in 1993 for

 

operation of a community swimming pool that the school district

 

does not want considered as operating millage and then that number

 

of mills is excluded under this section from taxes levied for

 

school operating purposes.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 6482(request no.

 

07934'08) of the 94th Legislature is enacted into law.