SENATE JOINT RESOLUTION N

 

 

October 4, 2011, Introduced by Senator WALKER 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

 

increase the sales tax rate and to dedicate that revenue to the

 

comprehensive transportation 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 sales tax rate and to

 

dedicate that revenue to the comprehensive transportation 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%

 


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%.

 

     Beginning January 1, 2012, the sales tax shall be imposed on

 

retailers at an additional rate of 1% of their gross taxable sales

 

of tangible personal property not exempt by law. The proceeds of

 

the sales tax imposed at the additional rate of 1% shall be

 

deposited in the Michigan transportation fund created in 1951 PA

 

51, MCL 247.651 to 247.675, or its successor fund. 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 1%.

 

     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.

 

     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.