HOUSE JOINT RESOLUTION E January 8, 1997, Introduced by Reps. Jaye, Goschka, Lowe, Whyman, McBryde, McManus, Llewellyn, Raczkowski, Cropsey, Kaza, Geiger and Perricone and referred to the Committee on Tax Policy. A joint resolution proposing an amendment to the state con- stitution of 1963, by amending section 26 of article IV and sec- tion 31 of article IX, to provide for concurrence of 2/3 of the members of each house to increase a tax base or a tax rate for state taxes or to impose a fee, to require a 2/3 vote of the electors of a unit of local government to levy a local tax or increase a tax base or tax rate for a local tax, and to provide for concurrence of 2/3 of the members of the governing body of a unit of local government to increase or impose a fee. Resolved by the Senate and House of Representatives of the state of Michigan, That the following amendment to the state con- stitution of 1963, to provide for concurrence of 2/3 of the mem- bers of each house to increase a tax base or a tax rate for state taxes or to impose a fee, to require a 2/3 vote of the electors of a unit of local government to levy a local tax or increase a 00304'97 JLB 2 tax base or tax rate for a local tax, and to provide for concurrence of 2/3 of the members of the governing body of a unit of local government to increase or impose a fee, is proposed, agreed to, and submitted to the people of the state: 1 ARTICLE IV 2 Sec. 26. (1) No bill shall be passed or become a law at any 3 regular session of the legislature until it has been printed or 4 reproduced and in the possession of each house for at least five 5 days. Every bill shall be read three times in each house before 6 the final passage thereof.NoEXCEPT AS OTHERWISE PROVIDED IN 7 THIS CONSTITUTION, NO bill shall become a law without the concur- 8 rence of a majority of the members elected to and serving in each 9 house. On the final passage of bills, the votes and names of the 10 members voting thereon shall be entered in the journal. 11 (2) NO BILL TO INCREASE A TAX BASE OR A TAX RATE OF A STATE 12 TAX TO CREATE A NEW STATE TAX OR TO IMPOSE OR INCREASE A STATE 13 FEE, SHALL BECOME LAW WITHOUT THE CONCURRENCE OF 2/3 OF THE MEM- 14 BERS ELECTED TO AND SERVING IN EACH HOUSE. 15 ARTICLE IX 16 Sec. 31. Units of Local Government are hereby prohibited 17 from levying any tax not authorized by law or charter when this 18 section is ratified or from increasing the rate of an existing 19 tax above that rate authorized by law or charter when this sec- 20 tion is ratified, without the approval ofa majorityTWO-THIRDS 21 of the qualified electors of that unit of Local Government voting 22 thereon. If the definition of the base of an existing tax is 23 broadened, the maximum authorized rate of taxation on the new 00304'97 3 1 base in each unit of Local Government shall be reduced to yield 2 the same estimated gross revenue as on the prior base. If the 3 assessed valuation of property as finally equalized, excluding 4 the value of new construction and improvements, increases by a 5 larger percentage than the increase in the General Price Level 6 from the previous year, the maximum authorized rate applied 7 thereto in each unit of Local Government shall be reduced to 8 yield the same gross revenue from existing property, adjusted for 9 changes in the General Price Level, as could have been collected 10 at the existing authorized rate on the prior assessed value. 11 The limitations of this section shall not apply to taxes 12 imposed for the payment of principal and interest on bonds or 13 other evidence of indebtedness or for the payment of assessments 14 on contract obligations in anticipation of which bonds are issued 15 which were authorized prior tothe effective date of this16amendmentDECEMBER 23, 1978. 17 BEGINNING JANUARY 1, 1999, UNITS OF LOCAL GOVERNMENT ARE 18 PROHIBITED FROM IMPOSING ANY NEW FEE OR INCREASING ANY EXISTING 19 FEE WITHOUT A TWO-THIRDS VOTE OF THE GOVERNING BODY OF THAT UNIT 20 OF LOCAL GOVERNMENT. 21 Resolved further, That the foregoing amendment shall be sub- 22 mitted to the people of the state at the next general election in 23 the manner provided by law. 00304'97 Final page. JLB