Bill Text: MI HB6103 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Education: other; certain rural workforce housing; exempt from school operating mills. Amends sec. 1211 of 1976 PA 451 (MCL 380.1211).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-08-17 - Bill Electronically Reproduced 08/12/2020 [HB6103 Detail]
Download: Michigan-2019-HB6103-Introduced.html
HOUSE BILL NO. 6103
August 12, 2020, Introduced by Rep. Cole and
referred to the Committee on Local Government and Municipal Finance.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1211 (MCL 380.1211), as amended by 2012 PA 285.
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, property occupied by a public school academy, rural workforce 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. Except as otherwise provided in subsection (9), the board of a
school district that had a foundation allowance for the 1994-95 state fiscal
year greater than $6,500.00 may reduce the number of mills from which a
principal residence, qualified agricultural property, qualified forest
property, supportive housing property, property occupied by a public school
academy, rural workforce 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, property occupied by a public school
academy, rural workforce 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,
property occupied by a public school academy, rural workforce 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, property occupied by a
public school academy, rural workforce
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 must 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 must 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,
property occupied by a public school academy, rural workforce 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 must be reduced by that same number of
mills.
(5) Except as otherwise
provided under this subsection, 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. With the approval of the state treasurer, a school district may
pledge millage levied under this section for the repayment of a loan under the
emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, money
borrowed by the school district under section 1225, or the repayment of
advances, overpayments, or other obligations of the school district to this
state under section 15 of the state school aid act of 1979, MCL 388.1615.
(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 must 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 or a school district that was previously 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) Beginning with taxes
levied for 2011, if a school district had a foundation allowance for the
1994-95 state fiscal year greater than $6,500.00 and if the school district's
foundation allowance for the 2009-2010 state fiscal year was less than the
basic foundation allowance prescribed for the 2009-2010 state fiscal year under
section 20 of the state school aid act of 1979, MCL 388.1620, the school
district may not reduce the number of mills from which certain classes of
property are exempted from the levy of millage under subsection (1) and may not
levy that number of mills on those classes of property as would otherwise be
allowed under subsection (1).
(10) 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) "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.
(d) "General price
level" means that term as defined in section 33 of article IX of the state
constitution of 1963.
(e) "Industrial
personal property" means the following:
(i) Except as otherwise provided in subparagraph (ii), property classified as industrial personal property under
section 34c of the general property tax act, 1893 PA 206, MCL 211.34c.
(ii) Beginning
December 31, 2011, industrial personal property does not include a turbine
powered by gas, steam, nuclear energy, coal, or oil the primary purpose of
which is the generation of electricity for sale.
(f) "Membership" means that term as defined in
section 6 of the state school aid act of 1979, MCL 388.1606.
(g) "Owner",
"person", "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.
(h) "Property occupied by a public school academy"
means property occupied by a public school academy, urban high school academy,
or school of excellence that is used exclusively for educational purposes.
(i) "Qualified forest property" means that term as
defined in section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj[1].
(j) "Rural workforce housing property" means that
term as defined in section 7xx of the general property tax act, 1893 PA 206,
MCL 211.7xx.
(k) (j) "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 or preceding years, including, but not limited
to, repayment of an emergency loan under the emergency municipal loan act, 1980
PA 243, MCL 141.931 to 141.942, 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 under 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 or a school district that was previously a
school district of the first class to a public library commission pursuant to under 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) (k) "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
125.1459a.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.____ (request no. 06409'20) of the 100th Legislature is enacted into law.