This bill amends the Revised School Code of Michigan, specifically sections 1211, 1212, and 1364, to introduce new provisions regarding school operating and sinking fund taxes. Starting December 31, 2026, real or personal property owned by individuals without dependents utilizing public education services will be exempt from the mills levied for school operating purposes and sinking funds. The bill also caps the maximum millage for school operating purposes at 18 mills or the number of mills levied in 1993, whichever is lower, and allows school districts to reduce the number of mills levied on certain properties under specific conditions. Additionally, it expands the permissible uses of sinking fund taxes to include the acquisition of student transportation vehicles and maintenance equipment, while setting a maximum millage for sinking fund taxes at 3 mills for taxes authorized after March 29, 2017, and requiring annual independent audits of these funds.

Moreover, the bill clarifies the definition of "school security improvement" to encompass various capital enhancements aimed at improving school security, such as metal detectors and surveillance systems, while excluding personnel and operational costs. It also modifies the language regarding the imposition of annual taxes by school districts that borrow money, ensuring that the board must impose an annual tax on taxable property to cover the principal and interest on borrowed funds. The enactment of this bill is contingent upon the passage of several related bills from the 103rd Legislature.

Statutes affected:
House Introduced Bill: 380.1211