The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5217 August 29, 1977 CONSTITUTION OF MICHIGAN: Art 9, Sec. 3 TAXATION: Alternative means of taxation of designated property in lieu of general ad valorem taxation. Low grade iron ore tax. The specific tax on low grade iron ore and low grade iron ore mining property imposed by the legislature pursuant to Const 1963, art 9, Sec. 3, which authorizes the legislature to provide alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation, is valid. Although Const 1963, art 9, Sec. 3, authorizes the legislature to enact taxes on property in lieu of a general ad valorem tax, there is no constitutional requirement that such taxes be distributed in the same manner and proportion as general property taxes are distributed. Honorable William G. Milliken Governor Lansing, Michigan The Marquette County Board of Commissioners has submitted the following question upon which you seek my advice: 'If the Iron Ore Specific Tax (MCL 211.261) is constitutionally permitted and is in lieu of the property tax (Article 9, Section 3), would a change in the distribution of revenue under the specific tax necessarily require a change in distribution of revenue under Ad Valorem tax, and is the distribution of either of these two taxes constitutionally mandated to the extent that a constitutional amendment would be required to change distribution of either tax or could such distribution be changed by legislative action?' The foregoing question deals with the specific tax upon low grade iron ore and low grade iron ore mining property imposed by 1951 PA 77; MCLA 211.621 et seq; MSA 13.157(1) et seq. 1951 PA 77, supra, Sec. 4, MCLA 211.624; MSA 13.157(4), states that the exaction 'shall be in lieu of ad valorem taxes upon the low grade iron ore, or upon the low grade iron ore property.' Const 1963, art 9, Sec. 3 authorizes the legislature to 'provide for alternative means of taxation of designated real and tangible personal property in lieu of general ad valorem taxation.' The tax on low grade iron ore is an example of such an alternative means of taxation and is therefore constitutionally permissible. Although the specific tax on taconite and taconite properties is presently distributed to school districts and local governmental units 'in the same proportion as the general property taxes are distributed,' 1951 PA 77, Sec. 4, supra, there is no provision in the Constitution for distribution of taxes levied in lieu of the general ad valorem tax, so that it is a matter for legislative determination. In summary, the Constitution authorizes the legislature to enact taxes in lieu of general ad valorem taxes on designated real and tangible personal property; there is, however, no constitutional requirement that taxes imposed in lieu of general ad valorem taxes be distributed in the manner, proportions and to the recipients of general property taxes. Frank J. Kelley Attorney General