May 17, 2006, Introduced by Senators JACOBS and BRATER and referred to the Committee on Finance.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 8 of article IX, to
permit a public transportation authority to levy a supplemental
sales tax.
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 a public transportation authority
to levy a supplemental sales tax, 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, 2007, a county, or two or more counties
acting jointly, may, if approved by a majority of the qualified
electors residing within the county or counties voting at a general
election or special election called for that purpose, impose on
retailers located within the limits of the county or counties a
supplemental sales tax of .5% of the retailers' gross taxable sales
of tangible personal property not exempt by law, the proceeds of
which shall be used to fund and operate a rapid transit system
located in that county or counties, and a supplemental sales tax of
.5% of the retailers' gross taxable sales of tangible personal
property not exempt by law, the proceeds of which shall be used to
fund road improvements within the county or counties.
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 the next general election
in the manner provided by law.