December 15, 2015, Introduced by Senators HORN, JONES, BOOHER and GREEN and referred to the Committee on Government Operations.
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, to dedicate that revenue to
transportation purposes, and to nullify the increase in motor fuel
taxes or registration fees enacted in 2015.
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, to dedicate
that revenue to transportation purposes, and to nullify the
increase in motor fuel taxes or registration fees enacted in 2015,
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, 2017 through December 31, 2026, unless
the sunset date is eliminated or an alternative sunset date is
proposed by an initiative petition that is submitted to and
approved by a majority of the voters at any election held before
December 31, 2026, in the manner provided by law, 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
and the use tax at an additional rate of 1%. 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%. The proceeds of the sales and
use taxes imposed at the additional rate of 1% shall, after the
payment of necessary collection expenses, be used exclusively for
the transportation purposes of planning, administering,
constructing, reconstructing, financing, and maintaining state,
county, city, village, and township roads, streets, and bridges
designed primarily for the use of motor vehicles using tires, and
reasonable appurtenances to those state, county, city, village, and
township roads, streets, and bridges and shall be used to
supplement and not supplant existing funding for transportation.
The proceeds of the sales and use taxes imposed at the additional
rate of 1% shall not be used for comprehensive transportation
purposes as defined by law and shall, after the payment of
necessary collection expenses, be distributed in the following
manner:
(a) 35% to the state trunk line fund created in section 11 of
1951 PA 51, MCL 247.661.
(b) 35% to the county road commissions of this state.
(c) 22% to the cities and villages of this state.
(d) 8% to the townships of this state.
The increase in motor fuel taxes and vehicle registration fees
enacted in November 2015 and effective beginning January 1, 2017
shall be null and void and shall not be charged or collected on or
after January 1, 2017. The legislature shall implement this
provision by law.
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 a special election to be
held at the same time as the August 2, 2016 regular election in the
manner provided by law.