SENATE BILL No. 1455

 

 

November 3, 2004, Introduced by Senator JACOBS and referred to the Committee on Education.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1976 PA 451, entitled                                             

                                                                                

    "The revised school code,"                                                  

                                                                                

    by amending section 1211 (MCL 380.1211), as amended by 2003 PA              

                                                                                

    126.                                                                        

                                                                                

                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 principal residence and qualified agricultural property            

                                                                                

6   are exempt from the mills levied under this subsection except for           

                                                                                

7   the number of mills by which that exemption is reduced under this           

                                                                                

8   subsection.  The board of a school district  with  that had a               

                                                                                

9   foundation allowance calculated under section 20 of the state               

                                                                                

10  school aid act of 1979, MCL 388.1620, for the 1994-95 state                 

                                                                                


                                                                                

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

                                                                                

2   mills from which a principal residence and qualified agricultural           

                                                                                

3   property are exempted under this subsection by up to the number             

                                                                                

4   of mills, as certified under section 1211a, required to be levied           

                                                                                

5   on a principal residence and qualified agricultural property for            

                                                                                

6   the school district's combined state and local revenue per                  

                                                                                

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

                                                                                

8   equal to the school district's foundation allowance for the state           

                                                                                

9   fiscal year ending in 1995, and the board also may levy in 1994             

                                                                                

10  or a succeeding year that number of mills for school operating              

                                                                                

11  purposes on a principal residence and qualified agricultural                

                                                                                

12  property.                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  1994 or a succeeding year additional mills uniformly on all                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  ending in 1995.  However, the board of a school district                    

                                                                                

26  described in this subsection, by board resolution, may elect to             

                                                                                

27  exempt each principal residence and all qualified agricultural              


                                                                                

1   property located in the school district from some or all of the             

                                                                                

2   mills that the board is authorized to levy under this subsection.           

                                                                                

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

                                                                                

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

                                                                                

5   the lesser of the number of mills the school district  is  was              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   under this section to ensure that the increase from the                     

                                                                                

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

                                                                                

11  combined state and local revenue per membership pupil, calculated           

                                                                                

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

                                                                                

13  the school district was allowed to levy under this section                  

                                                                                

14  regardless of the number of mills the school district actually              

                                                                                

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

                                                                                

16  increase in the basic foundation allowance under section 20 of              

                                                                                

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

                                                                                

18  immediately preceding state fiscal year or the percentage                   

                                                                                

19  increase in the general price level in the immediately preceding            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  under this section in the immediately preceding year, any                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  and then increasing the number of mills from which a principal              


                                                                                

1   residence and qualified agricultural property are exempted under            

                                                                                

2   subsection (1).                                                             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   the school electors.                                                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

11  the school district's next regular tax levy.                                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  additional millage needed to make up the shortfall.                         

                                                                                

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

                                                                                

18  the property tax limitation act, 1933 PA 62, MCL 211.201 to                 

                                                                                

19  211.217a, other than mills allocated to a school district of the            

                                                                                

20  first class for payment to a public library commission under                

                                                                                

21  section 11(4) of the property tax limitation act, 1933 PA 62, MCL           

                                                                                

22  211.211, after 1993.                                                        

                                                                                

23      (8) As used in this section:                                                

                                                                                

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

                                                                                

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

                                                                                

26  act of 1979, MCL 388.1620.                                                  

                                                                                

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


                                                                                

1   foundation allowance as calculated under section 20 of the state            

                                                                                

2   school aid act of 1979, MCL 388.1620.                                       

                                                                                

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

                                                                                

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

                                                                                

5       (d) "Membership" means that term as defined in section 6 of                 

                                                                                

6   the state school aid act of 1979, MCL 388.1606.                             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

11  furniture and equipment, for alterations necessary to maintain              

                                                                                

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

                                                                                

13  the cost of energy conservation improvements in school                      

                                                                                

14  facilities, for deficiencies in operating expenses for the                  

                                                                                

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

                                                                                

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

                                                                                

17  school district is a participating school district under former             

                                                                                

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

                                                                                

19  include any of the following:                                               

                                                                                

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

                                                                                

21  community college under part 25.                                            

                                                                                

22      (ii) Taxes levied under section 1212.                                        

                                                                                

23      (iii) Taxes levied under section 1356 for eliminating an                     

                                                                                

24  operating deficit.                                                          

                                                                                

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

                                                                                

26  1451 or for operation of a library established pursuant to 1913             

                                                                                

27  PA 261, MCL 397.261 to 397.262, that were not included in the               


                                                                                

1   operating millage reported by the district to the department as             

                                                                                

2   of April 1, 1993.  However, a district may report to the                    

                                                                                

3   department not later than April 1, 1994 the number of mills it              

                                                                                

4   levied in 1993 for a purpose described in this subparagraph that            

                                                                                

5   the school district does not want considered as operating millage           

                                                                                

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

                                                                                

7   taxes levied for school operating purposes.                                 

                                                                                

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

                                                                                

9   public library commission pursuant to section 11(4) of the                  

                                                                                

10  property tax limitation act, 1933 PA 62, MCL 211.211.                       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  community swimming pool as part of its operating millage reported           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  the school district does not want considered as operating millage           

                                                                                

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

                                                                                

20  taxes levied for school operating purposes.