SB-0129,As Passed Senate, March 13, 2003                                    

SUBSTITUTE FOR

SENATE BILL NO. 129

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

by amending sections 1211 and 1211e (MCL 380.1211 and 380.1211e),           

section 1211 as amended and section 1211e as added by 1994                  

PA 258; and to repeal acts and parts of acts.                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 1211.  (1) Except as otherwise provided in this section                

2   and section 1211c, the board of a school district shall levy not            

3   more than 18 mills for school operating purposes or the number of           

4   mills levied in 1993 for school operating purposes, whichever is            

5   less.  A  homestead principal residence and qualified                      

6   agricultural property are exempt from the mills levied under this           

7   subsection except for the number of mills by which that exemption           

8   is reduced under this subsection.  The board of a school district           

9   with a foundation allowance calculated under section 20 of the              

1   state school aid act of 1979,  being section 388.1620 of the                

2   Michigan Compiled Laws MCL 388.1620, for the 1994-95 state                 

3   fiscal year of more than $6,500.00, may reduce the number of                

4   mills from which a  homestead principal residence and qualified            

5   agricultural property are exempted under this subsection by up to           

6   the number of mills, as certified under section 1211a, required             

7   to be levied on a  homestead principal residence and qualified             

8   agricultural property for the school district's combined state              

9   and local revenue per membership pupil for the school fiscal year           

10  ending in 1995 to be equal to the school district's foundation              

11  allowance for the state fiscal year ending in 1995, and the board           

12  also may levy in 1994 or a succeeding year that number of mills             

13  for school operating purposes on a  homestead principal                    

14  residence and qualified agricultural property.                              

15      (2) Subject to subsection (3), if the department of treasury                

16  determines that the maximum number of mills allowed to be levied            

17  under subsection (1) on all classes of property is not sufficient           

18  for a school district's combined state and local revenue per                

19  membership pupil for the school fiscal year ending in 1995 to be            

20  equal to the school district's foundation allowance for that                

21  school fiscal year, the board of the school district may levy in            

22  1994 or a succeeding year additional mills uniformly on all                 

23  property up to the number of mills required for the school                  

24  district's combined state and local revenue per membership pupil            

25  for the school fiscal year ending in 1995 to be equal to the                

26  school district's foundation allowance for the state fiscal year            

27  ending in 1995.                                                             

1       (3) After 1994, the number of mills a school district may                   

2   levy under this section on any class of property shall not exceed           

3   the lesser of the number of mills the school district is                    

4   certified by the department of treasury under section 1211a to              

5   levy on that class of property under this section in 1994 or the            

6   number of mills required to be levied on that class of property             

7   under this section to ensure that the increase from the                     

8   immediately preceding state fiscal year in the school district's            

9   combined state and local revenue per membership pupil, calculated           

10  as if the school district had levied the maximum number of mills            

11  the school district was allowed to levy under this section                  

12  regardless of the number of mills the school district actually              

13  levied, does not exceed the lesser of the dollar amount of the              

14  increase in the basic foundation allowance under section 20 of              

15  the state school aid act of 1979, MCL 388.1620, from the                    

16  immediately preceding state fiscal year or the percentage                   

17  increase in the general price level in the immediately preceding            

18  calendar year.  If the number of mills a school district is                 

19  allowed to levy under this section in a year after 1994 is less             

20  than the number of mills the school district was allowed to levy            

21  under this section in the immediately preceding year, any                   

22  reduction required by this subsection in the school district's              

23  millage rate shall be calculated by first reducing the number of            

24  mills the school district is allowed to levy under subsection (2)           

25  and then increasing the number of mills from which a  homestead

26  principal residence and qualified agricultural property are                 

27  exempted under subsection (1).                                              

1       (4) Millage levied under this section must be approved by the               

2   school electors.  For the purposes of this section, millage                 

3   approved by the school electors before January 1, 1994 for which            

4   the authorization has not expired is considered to be approved by           

5   the school electors.                                                        

6       (5) If a school district levies millage for school operating                

7   purposes that is in excess of the limits of this section, the               

8   amount of the resulting excess tax revenue shall be deducted from           

9   the school district's next regular tax levy.                                

10      (6) If a school district levies millage for school operating                

11  purposes that is less than the limits of this section, the board            

12  of the school district may levy at the school district's next               

13  regular tax levy an additional number of mills not to exceed the            

14  additional millage needed to make up the shortfall.                         

15      (7) A school district shall not levy mills allocated under                  

16  the property tax limitation act,  Act No. 62 of the Public Acts             

17  of 1933, being sections 211.201 to 211.217a of the Michigan

18  Compiled Laws 1933 PA 62, MCL 211.201 to 211.217a, other than              

19  mills allocated to a school district of the first class for                 

20  payment to a public library commission under section 11(4) of               

21  Act No. 62 of the Public Acts of 1933, being section 211.211 of            

22  the Michigan Compiled Laws the property tax limitation act, 1933           

23  PA 62, MCL 211.211, after 1993.                                             

24      (8) As used in this section:                                                

25      (a) "Combined state and local revenue per membership pupil"                 

26  means that term as defined in section 20 of the state school aid            

27  act of 1979, MCL 388.1620.                                                  

1       (b) "Foundation allowance" means a school district's                        

2   foundation allowance as calculated under section 20 of the state            

3   school aid act of 1979, MCL 388.1620.                                       

4       (c) "General price level" means that term as defined in                     

5   section 33 of article IX of the state constitution of 1963.                 

6   (d) "Homestead" and "qualified agricultural property" mean                  

7   those terms as defined in section 1211d or in section 7dd of the            

8   general property tax act, Act No. 206 of the Public Acts of 1893,           

9   being section 211.7dd of the Michigan Compiled Laws.  If a term             

10  defined in section 1211d is defined in section 7dd of Act No. 206           

11  of the Public Acts of 1893 differently than the term is defined             

12  in section 1211d, then that term as used in this section means              

13  that term as defined in section 7dd of Act No. 206 of the Public            

14  Acts of 1893.

15  (d)  (e)  "Membership" means that term as defined in section                

16  6 of the state school aid act of 1979,  being section 388.1606 of           

17  the Michigan Compiled Laws MCL 388.1606.                                   

18  (e) "Owner", "person", "principal residence", and "qualified                

19  agricultural property" mean those terms as defined in section 7dd           

20  of the general property tax act, 1893 PA 206, MCL 211.7dd.

21      (f) "School operating purposes" includes expenditures for                   

22  furniture and equipment, for alterations necessary to maintain              

23  school facilities in a safe and sanitary condition, for funding             

24  the cost of energy conservation improvements in school                      

25  facilities, for deficiencies in operating expenses for the                  

26  preceding year, and for paying the operating allowance due from             

27  the school district to a joint high school district in which the            

1   school district is a participating school district under former

2   part 3a.  Taxes levied for school operating purposes do not                 

3   include any of the following:                                               

4                                                                                (i) Taxes levied by a school district for operating a                               

5   community college under part 25.                                            

6       (ii) Taxes levied under section 1212.                                        

7       (iii) Taxes levied under section  1356(4) 1356 for                          

8   eliminating an operating deficit.                                           

9       (iv) Taxes levied for operation of a library under section                   

10  260 or  1451 or for operation of a library established pursuant            

11  to  Act No. 261 of the Public Acts of 1913, being sections                  

12  397.261 to 397.262 of the Michigan Compiled Laws 1913 PA 261,              

13  MCL 397.261 to 397.262, that were not included in the operating             

14  millage reported by the district to the department as of April 1,           

15  1993.  However, a district may report to the department not later           

16  than April 1, 1994 the number of mills it levied in 1993 for a              

17  purpose described in this subparagraph that the school district             

18  does not want considered as operating millage and then that                 

19  number of mills is excluded under this section from taxes levied            

20  for school operating purposes.                                              

21      (v) Taxes paid by a school district of the first class to a                 

22  public library commission pursuant to section 11(4) of  Act                 

23  No. 62 of the Public Acts of 1933, being section 211.211 of the             

24  Michigan Compiled Laws the property tax limitation act, 1933 PA            

25  62, MCL 211.211.                                                            

26      (vi) Taxes levied under former section 1512 for operation of                 

27  a community swimming pool.  In addition, if a school district               

1   included the millage it levied in 1993 for operation of a                   

2   community swimming pool as part of its operating millage reported           

3   to the department for 1993, the school district may report to the           

4   department not later than June 17, 1994 the number of mills it              

5   levied in 1993 for operation of a community swimming pool that              

6   the school district does not want considered as operating millage           

7   and then that number of mills is excluded under this section from           

8   taxes levied for school operating purposes.                                 

9       Sec. 1211e.  (1) Subject to subsection (2), to claim an                     

10  exemption under section 1211(1) for qualified agricultural                  

11  property for the 1994 tax year, if an affidavit claiming an                 

12  exemption on a  homestead principal residence was not filed for            

13  the property by May 1, 1994, an affidavit claiming the exemption            

14  on qualified agricultural property shall be filed with the local            

15  assessing unit by June 1, 1994.  If property is qualified                   

16  agricultural property and is classified as agricultural property            

17  under section 34c of the general property tax act,  Act No. 206             

18  of the Public Acts of 1893, being section 211.34c of the Michigan

19  Compiled Laws 1893 PA 206, MCL 211.34c, that property is exempt            

20  and an affidavit claiming the exemption does not need to be                 

21  filed.                                                                      

22      (2) If there are provisions in  Act No. 206 of the Public                   

23  Acts of 1893 the general property tax act, 1893 PA 206, MCL                

24  211.1 to 211.157, that are inconsistent with subsection (1), the            

25  provisions of  Act No. 206 of the Public Acts of 1893 the                  

26  general property tax act, 1893 PA 206, MCL 211.1 to 211.157,

27  prevail.                                                                    

1       Enacting section 1.  This amendatory act takes effect                       

2   January 1, 2004.                                                            

3       Enacting section 2.  Section 1211d of the revised school                    

4   code, 1976 PA 451, MCL 380.1211d, is repealed effective January             

5   1, 2004.                                                                    

6       Enacting section 3.  This amendatory act does not take                      

7   effect unless Senate Bill No. 133 of the 92nd Legislature is                

8   enacted into law.