HJR-III, As Passed House, September 25, 2008

SUBSTITUTE FOR

HOUSE JOINT RESOLUTION III

     A joint resolution proposing an amendment to the state

constitution of 1963, by amending section 3 of article IX, to limit

the increase in taxable value of real property under certain

circumstances.

     Resolved by the Senate and House of Representatives of the

state of Michigan, That the following amendment to the state

constitution of 1963, to limit the increase in taxable value of

real property under certain circumstances, is proposed, agreed to,

and submitted to the people of the state:

ARTICLE IX

     Sec. 3. The legislature shall provide for the uniform general

ad valorem taxation of real and tangible personal property not

exempt by law except for taxes levied for school operating

purposes. The legislature shall provide for the determination of

true cash value of such property; the proportion of true cash value

at which such property shall be uniformly assessed, which shall

not, after January 1, 1966, exceed 50 percent; and for a system of

equalization of assessments. For taxes levied in 1995 and each year

thereafter, the legislature shall provide that the taxable value of

each parcel of property adjusted for additions and losses, shall

not increase each year by more than the increase in the immediately

preceding year in the general price level, as defined in section 33

of this article, or 5 percent, whichever is less until ownership of

the parcel of property is transferred. For taxes levied after 2010,

the legislature shall provide that if a property's assessed value

has increased by less than both the general price level and 5

percent, adjusted for additions and losses, the property's taxable

value in the immediately succeeding year, adjusted for additions

and losses, shall increase by that same percentage increase in the

property's assessed value. For taxes levied after 2010, the

legislature shall provide that if a property's assessed value has

decreased, adjusted for additions and losses, the property's

taxable value in the immediately succeeding year, adjusted for

additions and losses, shall not increase. When ownership of the

parcel of property is transferred as defined by law, the parcel

shall be assessed at the applicable proportion of current true cash

value. The legislature may provide for alternative means of

taxation of designated real and tangible personal property in lieu

of general ad valorem taxation. Every tax other than the general ad

valorem property tax shall be uniform upon the class or classes on

which it operates. A law that increases the statutory limits in

effect as of February 1, 1994 on the maximum amount of ad valorem

property taxes that may be levied for school district operating

purposes requires the approval of 3/4 of the members elected to and

serving in the Senate and in the House of Representatives.

     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.