Michigan, United States, regional Obligatory referendum [LOR] - Approval of qualified electors (Total amount of taxes)

General Typology

Instrument
Obligatory referendum [LOR]
Location
Michigan, USA
Political level
regional
Local Name:
Approval of qualified electors (Total amount of taxes)
Normative Level:
constitutional
Legally Binding:
yes
Legally Defined:

§ 26 Limitation on taxes; revenue limit; refunding or transferring excess revenues; exceptions to revenue limitation; adjustment of state revenue and spending limits.

Sec. 26. There is hereby established a limit on the total amount of taxes which may be imposed by the legislature in any fiscal year on the taxpayers of this state. This limit shall not be changed without approval of the majority of the qualified electors voting thereon, as provided for in Article 12 of the Constitution. 

[--> ARTICLE XII AMENDMENT AND REVISION of the Constitution; see LOR - amendment]

Effective with fiscal year 1979-1980, and for each fiscal year thereafter, the legislature shall not impose taxes of any kind which, together with all other revenues of the state, federal aid excluded, exceed the revenue limit established in this section. The revenue limit shall be equal to the product of the ratio of Total State Revenues in fiscal year 1978-79 divided by the Personal Income of Michigan in calendar year 1977 multiplied by the Personal Income of Michigan in either the prior calendar year or the average of Personal Income of Michigan in the previous three calendar years, whichever is greater.

For any fiscal year in the event that Total State Revenues exceed the revenue limit established in this section by 1% or more, the excess revenues shall be refunded pro rata based on the liability reported on the Michigan income tax and single business tax (or its successor tax or taxes) annual returns filed following the close of such fiscal year. If the excess is less than 1%, this excess may be transferred to the State Budget Stabilization Fund.

(..)

If responsibility for funding a program or programs is transferred from one level of government to another, as a consequence of constitutional amendment, the state revenue and spending limits may be adjusted to accommodate such change, provided that the total revenue authorized for collection by both state and local governments does not exceed that amount which would have been authorized without such change.

References: Constitution of Michigan, 1963 (retrieved 2 July 2017)

Subject Matter:

To change limit of total amount of taxes

Actors

Author:
Legislature
Initiator:
Law
Decision maker:
Electorate

Requirements

Available Time:
Turnout Quorum:
None
Approval Quorum:
Majority of voters
Geographical Quorum:
None
Excluded Issues:

"The revenue limitation established in this section shall not apply to taxes imposed for the payment of principal and interest on bonds, approved by the voters and authorized under Section 15 of this Article, and loans to school districts authorized under Section 16 of this Article."

References: Constitution of Michigan, 1963 (retrieved 2 July 2017)

Other Formal Requirements:

Procedural Elements

Wording Of Ballot Question:
Interaction With Authorities:
Supervision And Support:
Transparency And Finance:

Practice

Archive:
Remarks:

Compare: -> ARTICLE XII AMENDMENT AND REVISION of the Constitution and the legal design listed