March 25, 2014, Introduced by Senators CASWELL and JONES and referred to the Committee on Appropriations.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 8 of article IX, to
increase the sales tax rate and to dedicate that revenue to
transportation purposes.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to increase the sales tax rate and to
dedicate that revenue to transportation purposes, 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 October 1, 2014, the sales tax shall be imposed on
retailers at an additional rate of 1% of their gross taxable sales
of tangible personal property not exempt by law and the use tax at
an additional rate of 1%. The proceeds of the sales and use taxes
imposed at the additional rate of 1% shall, after the payment of
necessary collection expenses, be used exclusively for the
transportation purposes of planning, administering, constructing,
reconstructing, financing, and maintaining state, county, city, and
village roads, streets, and bridges designed primarily for the use
of motor vehicles using tires, and reasonable appurtenances to
those state, county, city, and village roads, streets, and bridges.
The legislature may authorize the incurrence of indebtedness and
the issuance of obligations pledging the proceeds of the sales and
use taxes imposed at the additional rate of 1% allocated or
authorized to be allocated by this paragraph, which obligations
shall not be construed to be evidences of state indebtedness under
this constitution.
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.