SENATE JOINT RESOLUTION P January 27, 1998, Introduced by Senators BULLARD, GEAKE, SHUGARS and BYRUM and referred to the Committee on Finance. A joint resolution proposing an amendment to the state con- stitution of 1963, by amending section 3 of article IX, to permit local tax assessing units to exempt tangible personal property. 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 permit local tax assessing units to exempt tangible personal property, is proposed, agreed to, and submitted to the people of the state: 1 ARTICLE IX 2 Sec. 3. The legislature shall provide for the uniform gen- 3 eral ad valorem taxation of real and tangible personal property 4 not exempt by law except for taxes levied for school operating 5 purposes. The legislature shall provide for the determination of 6 true cash value of such property; the proportion of true cash 7 value at which such property shall be uniformly assessed, which 04990'97 FDD 2 1 shall not, after January 1, 1966, exceed 50 percent; and for a 2 system of equalization of assessments. For taxes levied in 1995 3 and each year thereafter, the legislature shall provide that the 4 taxable value of each parcel of property adjusted for additions 5 and losses, shall not increase each year by more than the 6 increase in the immediately preceding year in the general price 7 level, as defined in section 33 of this article, or 5 percent, 8 whichever is less until ownership of the parcel of property is 9 transferred. When ownership of the parcel of property is trans- 10 ferred as defined by law, the parcel shall be assessed at the 11 applicable proportion of current true cash value. FOR TAXES 12 LEVIED IN 1999 AND EACH YEAR THEREAFTER, THE GOVERNING BODY OF A 13 LOCAL TAX ASSESSING UNIT MAY, BY RESOLUTION, EXEMPT FROM TAXATION 14 ALL TANGIBLE PERSONAL PROPERTY WITHIN THE LOCAL TAX ASSESSING 15 UNIT OR ALL TANGIBLE PERSONAL PROPERTY WITHIN THE LOCAL TAX 16 ASSESSING UNIT ACQUIRED AFTER DECEMBER 31, 1998. The legislature 17 may provide for alternative means of taxation of designated real 18 and tangible personal property in lieu of general ad valorem 19 taxation. Every tax other than the general ad valorem property 20 tax shall be uniform upon the class or classes on which it 21 operates. A law that increases the statutory limits in effect as 22 of February 1, 1994 on the maximum amount of ad valorem property 23 taxes that may be levied for school district operating purposes 24 requires the approval of 3/4 of the members elected to and serv- 25 ing in the Senate and in the House of Representatives. 04990'97 3 1 Resolved further, That the foregoing amendment shall be 2 submitted to the people of the state at the next general election 3 in the manner provided by law. 04990'97 Final page. FDD