January 24, 2007, Introduced by Senator WHITMER and referred to the Committee on Education.
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 approved by the school electors of the
school district, the board of a school district may levy a tax of
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,
or for any purpose for which a school district may borrow money and
issue bonds under section 1351a. 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.
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.
The question of levying taxes for the purpose of
creating a sinking fund shall be by ballot in substantially the
"Shall _______________________________ levy _______ mills
(legal name of school district)
to create a sinking fund for the purpose of _____________________
for a period of _____ years?
Yes ( )
No ( )".
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