Budget & Taxes (Elections)

This bill proposes an amendment to the Michigan state constitution to change how local governments can raise taxes. It requires that any new tax or increase to an existing tax rate must be approved by a majority of voters who cast ballots on the issue. Starting January 1, 2027, the law also mandates that at least 30% of all eligible voters in that local area must vote on the question for the tax measure to pass. The amendment includes specific rules to adjust tax rates if property values rise faster than inflation, ensuring tax revenue does not automatically increase without voter approval. Exceptions are made for taxes needed to pay off existing debt or bonds that were authorized before the change takes effect.

HB 5032 amends Michigan's Revised School Code to prohibit using state school aid funds for special elections. It directly affects school districts and local governments that receive state school aid, preventing them from allocating those funds toward special election costs. The bill specifically amends Section 1361 of the School Code (MCL 380.1361) to add this restriction. This change clarifies that school aid funds must be used solely for educational purposes, not for election-related expenses.