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.