Bill Summary – FastDemocracy

HOUSE BILL NO. 6029
     November 07, 2024, Introduced by Rep. Andrews and referred to the Committee on Education.
          A bill to amend 1976 PA 451, entitled
    "The revised school code,"
    by amending sections 1211 and 1211a (MCL 380.1211 and 380.1211a),
    section 1211 as amended by 2020 PA 156 and section 1211a as amended
    by 1994 PA 258.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 1211. (1) Except as otherwise provided in this section
 and section 1211c, the board of a school district shall levy not
 more than 18 mills for school operating purposes. or the number of
 mills levied in 1993 for school operating purposes, whichever is
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 less. A principal residence, qualified agricultural property,
 qualified forest property, supportive housing property, property
 occupied by a public school academy, and industrial personal
 property are exempt from the mills levied under this subsection
 except for the number of mills by which that exemption is reduced
 under this subsection. Except as otherwise provided in subsection
 (9), the board of a school district that had a foundation allowance
 for the 1994-95 state fiscal year greater than $6,500.00 may reduce
 the number of mills from which a principal residence, qualified
 agricultural property, qualified forest property, supportive
 housing property, property occupied by a public school academy, and
 industrial personal property are exempted under this subsection by
 up to the number of mills, as certified under section 1211a,
 required to be levied on a principal residence, qualified
 agricultural property, qualified forest property, supportive
 housing property, property occupied by a public school academy, and
 industrial personal property for the school district's combined
 state and local revenue per membership pupil for the school fiscal
 year ending in 1995 to be equal to the school district's foundation
 allowance for the state fiscal year ending in 1995, and the board
 also may levy in 1994 or a succeeding year that number of mills for
 school operating purposes on a principal residence, qualified
 agricultural property, qualified forest property, supportive
 housing property, property occupied by a public school academy, and
 industrial personal property.
       (2) Subject to subsection (3), if the department of treasury
 determines that the maximum number of mills allowed to be levied
 under subsection (1) on all classes of property was not sufficient
 for a school district's combined state and local revenue per
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 membership pupil for the school fiscal year ending in 1995 to be
 equal to the school district's foundation allowance for that school
 fiscal year, the board of the school district may levy in 1994 or a
 succeeding year additional mills uniformly on all property up to
 the number of mills required for the school district's combined
 state and local revenue per membership pupil for the school fiscal
 year ending in 1995 to be equal to the school district's foundation
 allowance for the state fiscal year ending in 1995. However, the
 board of a school district described in this subsection, by board
 resolution, may elect to exempt each principal residence and all
 qualified agricultural property, qualified forest property,
 supportive housing property, property occupied by a public school
 academy, and industrial personal property located in the school
 district from some or all of the mills that the board is authorized
 to levy under this subsection.
       (3) After 1994, the number of mills a school district may levy
 under this section on any class of property must not exceed the
 lesser of the number of mills the school district was certified by
 the department of treasury under section 1211a to levy on that
 class of property under this section in 1994 or the number of mills
 required to be levied on that class of property under this section
 to ensure that the increase from the immediately preceding state
 fiscal year in the school district's combined state and local
 revenue per membership pupil, calculated as if the school district
 had levied the maximum number of mills the school district was
 allowed to levy under this section regardless of the number of
 mills the school district actually levied, does not exceed the
 lesser of the dollar amount of the increase in the target
 foundation allowance under section 20 of the state school aid act
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 of 1979, MCL 388.1620, from the immediately preceding state fiscal
 year or the percentage increase in the general price level in the
 immediately preceding calendar year. If the number of mills a
 school district is allowed to levy under this section in a year
 after 1994 is less than the number of mills the school district was
 allowed to levy under this section in the immediately preceding
 year, any reduction required by this subsection in the school
 district's millage rate must be calculated by first reducing the
 number of mills the school district is allowed to levy under
 subsection (2) and then increasing the number of mills from which a
 principal residence, qualified agricultural property, qualified
 forest property, supportive housing property, property occupied by
 a public school academy, and industrial personal property are
 exempted under subsection (1). For calculations under this
 subsection, the target foundation allowance under section 20 of the
 state school aid act of 1979, MCL 388.1620, for the 2018-2019 state
 fiscal year is considered to be the basic foundation allowance
 under section 20 of the state school aid act of 1979, MCL 388.1620,
 for the 2018-2019 state fiscal year.
       (4) Commercial personal property is exempt from 12 of the
 mills levied under this section. However, if the number of mills
 from which industrial personal property is exempted for a specific
 school district is reduced under this section, then the number of
 mills from which commercial personal property is exempted for that
 school district must be reduced by that same number of mills.
       (5) Except as otherwise provided under this subsection,
 millage levied under this section must be approved by the school
 electors. For the purposes of this section, millage approved by the
 school electors before January 1, 1994 for which the authorization
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 has not expired is considered to be approved by the school
 electors. With the approval of the state treasurer, a school
 district may pledge millage levied under this section for the
 repayment of a loan under the emergency municipal loan act, 1980 PA
 243, MCL 141.931 to 141.942, money borrowed by the school district
 under section 1225, or the repayment of advances, overpayments, or
 other obligations of the school district to this state under
 section 15 of the state school aid act of 1979, MCL 388.1615.
       (6) If a school district levies millage for school operating
 purposes that is in excess of the limits of this section, the
 amount of the resulting excess tax revenue must be deducted from
 the school district's next regular tax levy.
       (7) If a school district levies millage for school operating
 purposes that is less than the limits of this section, the board of
 the school district may levy at the school district's next regular
 tax levy an additional number of mills not to exceed the additional
 millage needed to make up the shortfall.
       (8) A school district shall not levy mills allocated under the
 property tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a,
 other than mills allocated to a school district that was previously
 a school district of the first class, for payment to a public
 library commission under section 11(4) of the property tax
 limitation act, 1933 PA 62, MCL 211.211, after 1993.
       (9) Beginning with taxes levied for 2011, if a school district
 had a foundation allowance for the 1994-95 state fiscal year
 greater than $6,500.00 and if the school district's foundation
 allowance for the 2009-2010 state fiscal year was less than the
 basic foundation allowance prescribed for the 2009-2010 state
 fiscal year under section 20 of the state school aid act of 1979,
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 MCL 388.1620, the school district may not reduce the number of
 mills from which certain classes of property are exempted from the
 levy of millage under subsection (1) and may not levy that number
 of mills on those classes of property as would otherwise be allowed
 under subsection (1).
       (10) As used in this section:
       (a) "Combined state and local revenue" means the aggregate of
 the school district's state school aid received by or paid on
 behalf of the district under section 20 of the state school aid act
 of 1979, MCL 388.1620, and the school district's local school
 operating revenue.
       (b) (a) "Combined state and local revenue per membership
 pupil" means that term as defined in section 20 of the state school
 aid act of 1979, MCL 388.1620.the school district's combined state
 and local revenue divided by the school district's membership
 excluding special education pupils.
       (c) (b) "Commercial personal property" means property
 classified as commercial personal property under section 34c of the
 general property tax act, 1893 PA 206, MCL 211.34c.
       (d) (c) "Foundation allowance" means a school district's
 foundation allowance as calculated under section 20 of the state
 school aid act of 1979, MCL 388.1620.
       (e) (d) "General price level" means that term as defined in
 section 33 of article IX of the state constitution of 1963.
       (f) (e) "Industrial personal property" means the following:
       (i) Except as otherwise provided in subparagraph (ii), property
 classified as industrial personal property under section 34c of the
 general property tax act, 1893 PA 206, MCL 211.34c.
       (ii) Beginning December 31, 2011, industrial personal property
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 does not include a turbine powered by gas, steam, nuclear energy,
 coal, or oil the primary purpose of which is the generation of
 electricity for sale.
       (g) (f) "Membership" means that term as defined in section 6
 of the state school aid act of 1979, MCL 388.1606.
       (h) (g) "Owner", "person", "principal residence", and
 "qualified agricultural property" mean those terms as defined in
 section 7dd of the general property tax act, 1893 PA 206, MCL
 211.7dd.
       (i) (h) "Property occupied by a public school academy" means
 property occupied by a public school academy, urban high school
 academy, or school of excellence that is used exclusively for
 educational purposes.
       (j) (i) "Qualified forest property" means that term as defined
 in section 7jj of the general property tax act, 1893 PA 206, MCL
 211.7jj[1].
       (k) (j) "School operating purposes" includes expenditures for
 furniture and equipment, for alterations necessary to maintain
 school facilities in a safe and sanitary condition, for funding the
 cost of energy conservation improvements in school facilities, for
 deficiencies in operating expenses for the preceding year or
 preceding years, including, but not limited to, repayment of an
 emergency loan under the emergency municipal loan act, 1980 PA 243,
 MCL 141.931 to 141.942, and for paying the operating allowance due
 from the school district to a joint high school district in which
 the school district is a participating school district under former
 part 3a. Taxes levied for school operating purposes do not include
 any of the following:
       (i) Taxes levied by a school district for operating a community
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 college under part 25.
       (ii) Taxes levied under section 1212.
       (iii) Taxes levied under section 1356 for eliminating an
 operating deficit.
       (iv) Taxes levied for operation of a library under section 1451
 or for operation of a library established under 1913 PA 261, MCL
 397.261 to 397.262, that were not included in the operating millage
 reported by the district to the department as of April 1, 1993.
 However, a district may report to the department not later than
 April 1, 1994 the number of mills it levied in 1993 for a purpose
 described in this subparagraph that the school district does not
 want considered as operating millage and then that number of mills
 is excluded under this section from taxes levied for school
 operating purposes.
       (v) Taxes paid by a school district that was previously a
 school district of the first class to a public library commission
 under section 11(4) of the property tax limitation act, 1933 PA 62,
 MCL 211.211.
       (vi) Taxes levied under former section 1512 for operation of a
 community swimming pool. In addition, if a school district included
 the millage it levied in 1993 for operation of a community swimming
 pool as part of its operating millage reported to the department
 for 1993, the school district may report to the department not
 later than June 17, 1994 the number of mills it levied in 1993 for
 operation of a community swimming pool that the school district
 does not want considered as operating millage and then that number
 of mills is excluded under this section from taxes levied for
 school operating purposes.
       (l) (k) "Supportive housing property" means real property
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 certified as supportive housing property under chapter 3B of the
 state housing development authority act of 1966, 1966 PA 346, MCL
 125.1459 to 125.1459a.
       Sec. 1211a. Not later than June 20, 1994, the department of
 treasury shall certify each school district's combined state and
 local revenue per membership pupil, as defined in section 1211, for
 the school fiscal year ending in 1994, the number of mills the
 school district may levy beginning in 1994 under section 1211, and
 the number of mills by which the school district may reduce the
 exemption for a homestead and qualified agricultural property for
 1994 under section 1211. The department of education shall provide
 to the department of treasury all information necessary for the
 department of treasury to make the certifications under this
 section. Not later than July 20, 1994, a school district may appeal
 the determinations made by the department of treasury for the
 district under this section. An appeal under this subsection shall
 be made to the superintendent of public instruction, who may assign
 the appeal to a hearing officer. The superintendent of public
 instruction shall offer any appealing school district an appeal
 conference to attempt to resolve the issues raised in the appeal
 without a hearing. If the appeal conference does not resolve the
 issues, the superintendent of public instruction or hearing officer
 may conduct a hearing. Based upon the appeal, the information
 submitted by the school district, and the information provided by
 the department of treasury, the hearing officer shall submit a
 proposed decision to the superintendent of public instruction
 either affirming the determinations made by the department of
 treasury or directing the department of treasury to make specific
 adjustments. Not later than 30 days after receiving the proposed
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 decision, or not later than 30 days after hearing the appeal, the
 superintendent of public instruction shall issue a final decision
 either affirming the determinations made by the department of
 treasury or directing the department of treasury to make specific
 adjustments and provide a copy to the school district.
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Statutes affected: 
House Introduced Bill: 380.1211