HOUSE JOINT RESOLUTION BB


     September 17, 2002, Introduced by Rep. Stallworth and referred to the Committee on Tax Policy.


        A joint resolution proposing an amendment to the state con-

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

   vide for a tricounty regional sales tax option.

        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 a tricounty regional sales tax

   option, is proposed, agreed to, and submitted to the people of

   the state:

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                                    ARTICLE IX

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

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

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

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

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

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


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

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

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

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

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

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

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             BEGINNING JANUARY 1, 2003, THE LEGISLATURE SHALL PROVIDE FOR

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        A LOCAL OPTION SALES TAX FOR ANY TRICOUNTY REGION WITH A TOTAL

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        POPULATION OF MORE THAN 4,000,000 UPON APPROVAL OF A MAJORITY OF

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        VOTERS VOTING ON THE QUESTION IN THAT TRICOUNTY REGION.  THE

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        SALES TAX LEVIED SHALL BE AT A RATE OF NOT MORE THAN 1%.  SIXTY

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        PERCENT OF THE PROCEEDS OF THIS SALES TAX SHALL BE USED ONLY FOR

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        REGIONAL PUBLIC TRANSPORTATION PURPOSES AND COORDINATION IN THAT

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        TRICOUNTY REGION.  TWENTY PERCENT OF THE PROCEEDS OF THE SALES

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        TAX SHALL BE USED ONLY FOR FUNDING ROADS, AND 20% SHALL BE USED

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        FOR WATER AND SEWAGE INFRASTRUCTURE IN THAT TRICOUNTY REGION.  A

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        COUNTY THAT DOES NOT CONTAIN A CITY WITH A POPULATION OF MORE

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        THAN 750,000 MAY DECLINE TO COLLECT THE LOCAL OPTION SALES TAX IF

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        A MAJORITY OF THE VOTERS VOTING ON THE QUESTION IN THAT COUNTY DO

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        NOT APPROVE THE QUESTION AND THE COUNTY BOARD OF COMMISSIONERS

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        ADOPTS A RESOLUTION TO DECLINE TO COLLECT THE LOCAL OPTION SALES

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        TAX.  IF A COUNTY DECLINES TO COLLECT A LOCAL OPTION SALES TAX,

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        NONE OF THE PROCEEDS FROM THAT LOCAL OPTION SALES TAX SHALL BE

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        USED FOR ALLOWED PURPOSES IN THAT COUNTY.

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

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

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        drugs for human use, or on the sale or use of food for human



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        consumption except in the case of prepared food intended for

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        immediate consumption as defined by law.  This provision shall

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        not apply to alcoholic beverages.

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             Resolved further, That the foregoing amendment shall be sub-

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

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        the manner provided by law.












































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