SENATE JOINT RESOLUTION K

 

 

March 24, 2011, Introduced by Senator JOHNSON and referred to the Committee on Finance.

 

 

 

     A joint resolution proposing an amendment to the state

 

constitution of 1963, by amending section 8 of article IX, to allow

 

the levy of a sales tax on the sale of tangible personal property

 

and services by local units of government and to restrict the use

 

of the proceeds of that tax.

 

     Resolved by the Senate and House of Representatives of the

 

state of Michigan, That the following amendment to the state

 

constitution of 1963, to allow the levy of a sales tax on the sale

 

of tangible personal property and services by local units of

 

government and to restrict the use of the proceeds of that tax, 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%

 

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.

 

     Beginning January 1, 2012, a city, village, or county; two or

 

more adjacent cities, villages, or counties; a township and an

 

adjacent city, village, or county; not less than three adjacent

 

townships; or any statutorily created regional authority with

 

bonding authority under law may impose on retailers and service

 

providers a sales tax at a rate of not more than 4% of their gross

 

taxable sales of tangible personal property and services if

 

approved by a majority vote of the qualified electors in each city,

 

village, township, county, or regional authority in which the sales

 

tax is to be levied. Proceeds of the sales tax imposed at a rate of

 


not more than 4% may be used for any purpose, as approved by the

 

qualified electors in each city, village, township, county, or

 

regional authority in which the tax was collected. In addition to

 

any other requirements imposed by law, the ballot question

 

proposing the authorization of the tax shall specifically state how

 

the proceeds of the tax shall be distributed.

 

     Resolved further, That the foregoing amendment shall be

 

submitted to the people of the state at the next general election

 

in the manner provided by law.