October 20, 2009, Introduced by Rep. Meadows and referred to the Committee on Tax Policy.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending sections 8, 10, and 11 of article
IX, to permit reduction of the overall sales and use tax rate,
expansion of the application of the sales tax to services, and the
exclusion of certain items from exemption.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to permit reduction of the overall sales and
use tax rate, expansion of the application of the sales tax to
services, and the exclusion of certain items from exemption, is
proposed, agreed to, and submitted to the people of the state:
ARTICLE IX
Sec. 8. Except as provided in this section, before January 1,
2010, 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 and shall not impose a use tax at a rate of more
than 4%.
Beginning May 1, 1994 through December 31, 2009, 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, 2010, the Legislature shall not impose a
sales tax on sellers, as that term is defined by law, at a rate of
more than 5% of their gross proceeds, as that term is defined by
law, from the sale of tangible personal property or services and
shall not impose a use tax at a rate of more than 5% for the
privilege of storing, using, or consuming tangible personal
property or services in this state.
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 and, beginning January 1, 2010, carbonated
beverages or bottled water in units of less than one gallon.
Sec.
10. Fifteen percent Before
January 1, 2010, 15% of
all
taxes imposed on retailers on taxable sales at retail of tangible
personal property at a rate of not more than 4% shall be used
exclusively for assistance to townships, cities and villages, on a
population basis as provided by law.
Beginning January 1, 2010, 20% of the sales tax imposed on
sellers under section 8 of this article at a rate of not more than
5% shall be used exclusively for assistance to townships, cities,
and villages, on a population basis as provided by law.
In determining population the legislature may exclude any
portion of the total number of persons who are wards, patients or
convicts in any tax supported institution.
Sec. 11. There shall be established a state school aid fund
which shall be used exclusively for aid to school districts, higher
education, and school employees' retirement systems, as provided by
law.
Sixty percent
Before January 1, 2010, 60% of all taxes imposed at a rate of
4% on retailers on taxable sales at retail of tangible personal
property, 100% of the proceeds of the sales and use taxes imposed
at the additional rate of 2% provided for in section 8 of this
article, and other tax revenues provided by law, shall be dedicated
to this fund.
Beginning January 1, 2010, 75% of the sales tax imposed under
section 8 of this article on sellers at a rate of not more than 5%
of their gross proceeds as defined by law, and other tax revenues
provided by law, shall be dedicated to this fund.
Payments from this fund shall be made in full on a scheduled
basis, as provided by law. Beginning in the 1995-96 state fiscal
year and each state fiscal year after 1995-96, the state shall
guarantee that the total state and local per pupil revenue for
school operating purposes for each local school district shall not
be less than the 1994-95 total state and local per pupil revenue
for school operating purposes for that local school district, as
adjusted for consolidations, annexations, or other boundary
changes. However, this guarantee does not apply in a year in which
the local school district levies a millage rate for school district
operating purposes less than it levied in 1994.
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.