Bill Text: MI HB4489 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Education; financing; new construction; exempt from school operating mills for a certain period. Amends sec. 1211 of 1976 PA 451 (MCL 380.1211). TIE BAR WITH: HB 4488'09
Spectrum: Moderate Partisan Bill (Republican 17-2)
Status: (Introduced - Dead) 2009-03-04 - Printed Bill Filed 03/04/2009 [HB4489 Detail]
Download: Michigan-2009-HB4489-Introduced.html
HOUSE BILL No. 4489
March 3, 2009, Introduced by Reps. Agema, Rick Jones, Denby, Crawford, Calley, Opsommer, Green, Genetski, Amash, Knollenberg, Hildenbrand, Roy Schmidt, Meekhof, Rogers, Booher, Caul, Haines, Haveman and Spade and referred to the Committee on Tax Policy.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1211 (MCL 380.1211), as amended by 2008 PA 455.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1211. (1) Except as otherwise provided in this section
and section 1211c, the board of a school district shall levy not
more than 18 mills for school operating purposes or the number of
mills levied in 1993 for school operating purposes, whichever is
less. A principal residence, qualified agricultural property,
qualified forest property, supportive housing property, and
industrial personal property are exempt from the mills levied under
this subsection except for the number of mills by which that
exemption is reduced under this subsection. New construction on
development property is exempt from the mills levied under this
subsection except for the number of mills by which that exemption
is reduced under this subsection for the period of time provided in
section 7mm of the general property tax act, 1893 PA 206, MCL
211.7mm. The board of a school district that had a foundation
allowance calculated under section 20 of the state school aid act
of 1979, MCL 388.1620, for the 1994-95 state fiscal year of more
than $6,500.00, may reduce the number of mills from which a
principal residence, qualified agricultural property, qualified
forest property, supportive housing property, and industrial
personal property are exempted under this subsection by up to the
number of mills, as certified under section 1211a, required to be
levied on a principal residence, qualified agricultural property,
qualified forest property, supportive housing property, and
industrial personal property for the school district's combined
state and local revenue per membership pupil for the school fiscal
year ending in 1995 to be equal to the school district's foundation
allowance for the state fiscal year ending in 1995, and the board
also may levy in 1994 or a succeeding year that number of mills for
school operating purposes on a principal residence, qualified
agricultural property, qualified forest property, supportive
housing property, and industrial personal property.
(2) Subject to subsection (3), if the department of treasury
determines that the maximum number of mills allowed to be levied
under subsection (1) on all classes of property was not sufficient
for a school district's combined state and local revenue per
membership pupil for the school fiscal year ending in 1995 to be
equal to the school district's foundation allowance for that school
fiscal year, the board of the school district may levy in 1994 or a
succeeding year additional mills uniformly on all property up to
the number of mills required for the school district's combined
state and local revenue per membership pupil for the school fiscal
year ending in 1995 to be equal to the school district's foundation
allowance for the state fiscal year ending in 1995. However, the
board of a school district described in this subsection, by board
resolution, may elect to exempt each principal residence and all
qualified agricultural property, qualified forest property,
supportive housing property, and industrial personal property
located in the school district from some or all of the mills that
the board is authorized to levy under this subsection.
(3) After 1994, the number of mills a school district may levy
under this section on any class of property shall not exceed the
lesser of the number of mills the school district was certified by
the department of treasury under section 1211a to levy on that
class of property under this section in 1994 or the number of mills
required to be levied on that class of property under this section
to ensure that the increase from the immediately preceding state
fiscal year in the school district's combined state and local
revenue per membership pupil, calculated as if the school district
had levied the maximum number of mills the school district was
allowed to levy under this section regardless of the number of
mills the school district actually levied, does not exceed the
lesser of the dollar amount of the increase in the basic foundation
allowance under section 20 of the state school aid act of 1979, MCL
388.1620, from the immediately preceding state fiscal year or the
percentage increase in the general price level in the immediately
preceding calendar year. If the number of mills a school district
is allowed to levy under this section in a year after 1994 is less
than the number of mills the school district was allowed to levy
under this section in the immediately preceding year, any reduction
required by this subsection in the school district's millage rate
shall be calculated by first reducing the number of mills the
school district is allowed to levy under subsection (2) and then
increasing the number of mills from which a principal residence,
qualified agricultural property, qualified forest property,
supportive housing property, and industrial personal property are
exempted under subsection (1).
(4) Commercial personal property is exempt from 12 of the
mills levied under this section. However, if the number of mills
from which industrial personal property is exempted for a specific
school district is reduced under this section, then the number of
mills from which commercial personal property is exempted for that
school district shall be reduced by that same number of mills.
(5) Millage levied under this section must be approved by the
school electors. For the purposes of this section, millage approved
by the school electors before January 1, 1994 for which the
authorization has not expired is considered to be approved by the
school electors.
(6) If a school district levies millage for school operating
purposes that is in excess of the limits of this section, the
amount of the resulting excess tax revenue shall be deducted from
the school district's next regular tax levy.
(7) If a school district levies millage for school operating
purposes that is less than the limits of this section, the board of
the school district may levy at the school district's next regular
tax levy an additional number of mills not to exceed the additional
millage needed to make up the shortfall.
(8) A school district shall not levy mills allocated under the
property tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a,
other than mills allocated to a school district of the first class
for payment to a public library commission under section 11(4) of
the property tax limitation act, 1933 PA 62, MCL 211.211, after
1993.
(9) As used in this section:
(a) "Combined state and local revenue per membership pupil"
means that term as defined in section 20 of the state school aid
act of 1979, MCL 388.1620.
(b) "Commercial personal property" means property classified
as commercial personal property under section 34c of the general
property tax act, 1893 PA 206, MCL 211.34c.
(c) "Development property" means that term as defined in
section 7mm of the general property tax act, 1893 PA 206, MCL
211.7mm.
(d) (c)
"Foundation allowance"
means a school district's
foundation allowance as calculated under section 20 of the state
school aid act of 1979, MCL 388.1620.
(e) (d)
"General price level"
means that term as defined in
section 33 of article IX of the state constitution of 1963.
(f) (e)
"Industrial personal
property" means property
classified as industrial personal property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.34c.
(g) (f)
"Membership" means that
term as defined in section 6
of the state school aid act of 1979, MCL 388.1606.
(h) "New construction" means that term as defined in section
34d of the general property tax act, 1893 PA 206, MCL 211.34d.
(i) (g)
"Owner",
"person", "principal residence", and
"qualified agricultural property" mean those terms as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
(j) (h)
"Qualified forest
property" means that term as defined
in section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj[1].
(k) (i)
"School operating
purposes" includes expenditures for
furniture and equipment, for alterations necessary to maintain
school facilities in a safe and sanitary condition, for funding the
cost of energy conservation improvements in school facilities, for
deficiencies in operating expenses for the preceding year, and for
paying the operating allowance due from the school district to a
joint high school district in which the school district is a
participating school district under former part 3a. Taxes levied
for school operating purposes do not include any of the following:
(i) Taxes levied by a school district for operating a community
college under part 25.
(ii) Taxes levied under section 1212.
(iii) Taxes levied under section 1356 for eliminating an
operating deficit.
(iv) Taxes levied for operation of a library under section 1451
or for operation of a library established pursuant to 1913 PA 261,
MCL 397.261 to 397.262, that were not included in the operating
millage reported by the district to the department as of April 1,
1993. However, a district may report to the department not later
than April 1, 1994 the number of mills it levied in 1993 for a
purpose described in this subparagraph that the school district
does not want considered as operating millage and then that number
of mills is excluded under this section from taxes levied for
school operating purposes.
(v) Taxes paid by a school district of the first class to a
public library commission pursuant to section 11(4) of the property
tax limitation act, 1933 PA 62, MCL 211.211.
(vi) Taxes levied under former section 1512 for operation of a
community swimming pool. In addition, if a school district included
the millage it levied in 1993 for operation of a community swimming
pool as part of its operating millage reported to the department
for 1993, the school district may report to the department not
later than June 17, 1994 the number of mills it levied in 1993 for
operation of a community swimming pool that the school district
does not want considered as operating millage and then that number
of mills is excluded under this section from taxes levied for
school operating purposes.
(l) (j)
"Supportive housing
property" means real property
certified
as supportive housing property under chapter 3B of the
state
housing development authority act of 1966, 1966 PA 346, MCL
125.1459
to 125.1459b. that meets all
of the following
requirements:
(i) Is owned by an organization exempt under section 501(c)(3)
of the internal revenue code, 26 USC 501.
(ii) All living units are occupied by 1 or more persons each
having incomes at or below 30% of the area median income and who
each individually receive services for not less than 1 hour per
month either directly from or contracted for by an organization
identified in subparagraph (i), which services include, but are not
limited to, mental health, substance abuse, counseling, and
assistance with daily living.
(iii) Consists of not more than 6 individual living units.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4488(request no.
01773'09) of the 95th Legislature is enacted into law.
