Bill Text: MI HJRF | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Sales tax; rate; lowering sales and use tax rate and applying sales tax to services; amend constitution to provide for. Amends secs. 8, 10 & 11, art. IX of the state constitution.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-19 - Printed Joint Resolution Filed 01/19/2011 [HJRF Detail]

Download: Michigan-2011-HJRF-Introduced.html

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HOUSE JOINT RESOLUTION F

 

January 18, 2011, 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,

 

2011, 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, 2010, 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, 2011, 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, 2011, carbonated

 

beverages or bottled water in units of less than one gallon.

 

     Sec. 10. Fifteen percent Before January 1, 2011, 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, 2011, 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, 2011, 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, 2011, 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.