HOUSE JOINT RESOLUTION X


     June 12, 1997, Introduced by Reps. Nye, Gubow and Walberg and referred to the Committee on Appropriations.


        A joint resolution proposing an amendment to the state con-

   stitution of 1963, by amending section 8 of article IX, to pro-

   vide for an increase in the sales tax for transportation

   purposes.

        Resolved by the Senate and House of Representatives of the

   state of Michigan, That the following amendment to the state con-

   stitution of 1963, to provide for an increase in the sales tax

   for transportation purposes, is proposed, agreed to, and submit-

   ted to the people of the state:

 1                                ARTICLE IX

 2         Sec. 8.  Except as provided in this section, the Legislature

 3    shall not impose a sales tax on retailers at a rate of more than

 4    4% of their gross taxable sales of tangible personal property.

 5         Beginning May 1, 1994, the sales tax shall be imposed on

 6    retailers at an additional rate of 2% of their gross taxable


   00150'97 *                                               CSC
                                                2

 1    sales of tangible personal property not exempt by law and the use

 2    tax at an additional rate of 2%.  The proceeds of the sales and

 3    use taxes imposed at the additional rate of 2% shall be deposited

 4    in the state school aid fund established in section 11 of this

 5    article.  The allocation of sales tax revenue required or autho-

 6    rized by sections 9 and 10 of this article does not apply to the

 7    revenue from the sales tax imposed at the additional rate of 2%.

 8         BEGINNING JANUARY 1, 1998, THE SALES TAX SHALL BE IMPOSED ON

 9    RETAILERS AT AN ADDITIONAL RATE OF 1% ON THEIR GROSS TAXABLE

10    SALES OF TANGIBLE PERSONAL PROPERTY NOT EXEMPT BY LAW.  THE PRO-

11    CEEDS OF THE SALES TAX IMPOSED AT THE ADDITIONAL RATE OF 1% IS

12    EARMARKED TO THE MICHIGAN TRANSPORTATION FUND OR ITS SUCCESSOR

13    FOR USE FOR TRANSPORTATION PURPOSES.  THE ALLOCATION OF SALES TAX

14    REVENUE REQUIRED BY SECTION 10 OF THIS ARTICLE DOES NOT APPLY TO

15    THE REVENUE FROM THE SALES TAX IMPOSED AT THE ADDITIONAL RATE OF

16    1%.

17         No sales tax or use tax shall be charged or collected from

18    and after January 1, 1975 on the sale or use of prescription

19    drugs for human use, or on the sale or use of food for human con-

20    sumption except in the case of prepared food intended for immedi-

21    ate consumption as defined by law.  This provision shall not

22    apply to alcoholic beverages.

23         Resolved further, That the foregoing amendment shall be sub-

24    mitted to the people of the state at the next general election in

25    the manner provided by law.







   00150'97 *          Final page.                          CSC