April 5, 2007, Introduced by Rep. Stakoe and referred to the Committee on Tax Policy.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 3 of article IX, to
restrict the rate of increase in the taxable value of a principal
residence following a transfer of ownership.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to restrict the rate of increase in the
taxable value of a principal residence following a transfer of
ownership, is proposed, agreed to, and submitted to the people of
the state:
ARTICLE IX
Sec. 3. The legislature shall provide for the uniform general
ad valorem taxation of real and tangible personal property not
exempt by law except for taxes levied for school operating
purposes. The legislature shall provide for the determination of
true cash value of such property; the proportion of true cash value
at which such property shall be uniformly assessed, which shall
not, after January 1, 1966, exceed 50 percent; and for a system of
equalization of assessments. For taxes levied in 1995 and each year
thereafter, the legislature shall provide that the taxable value of
each parcel of property adjusted for additions and losses, shall
not increase each year by more than the increase in the immediately
preceding year in the general price level, as defined in section 33
of this article, or 5 percent, whichever is less until ownership of
the parcel of property is transferred. When ownership of the parcel
of property is transferred as defined by law, the parcel shall be
assessed at the applicable proportion of current true cash value.
However, for taxes levied in 2007 and each year thereafter, when
ownership of a principal residence, as defined by law, is
transferred, as defined by law, 1/3 of any increase in the assessed
value of that principal residence shall be applied to that
principal residence in each of the immediately succeeding three
years. The legislature may provide for alternative means of
taxation of designated real and tangible personal property in lieu
of general ad valorem taxation. Every tax other than the general ad
valorem property tax shall be uniform upon the class or classes on
which it operates. A law that increases the statutory limits in
effect as of February 1, 1994 on the maximum amount of ad valorem
property taxes that may be levied for school district operating
purposes requires the approval of 3/4 of the members elected to and
serving in the Senate and in the House of Representatives.
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.