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. 5320 June 23, 1978 SCHOOLS AND SCHOOL DISTRICTS: Transfer of territory from one school district to another If property is transferred from one school district to another school district constituent to a different intermediate school district, effective before September 1, the intermediate school district receiving the territory shall levy the school operational millage for that year; if the transfer is effective on or after September 1, the school operational millage for that year shall be levied by the intermediate school district from which the territory is detached. Dr. John W. Porter Superintendent of Public Instruction Michigan Department of Education Michigan National Tower Lansing, Michigan 48933 You have requested my opinion on two questions which may be phrased as follows: 1. If territory is transferred from one school district to another school district located in a different intermediate school district, does the transferred territory remain a part of the intermediate school district in which it was formerly located for the purpose of levying debt retirement taxes for bonded indebtedness? 2. If territory is transferred from one school district to another school district located in a different intermediate school district, which intermediate school district may levy school operational millage on the transferred territory? In the School Code of 1976, 1976 PA 451, MCLA 380.1 et seq; MSA 15.4001 et seq, Secs. 951-976, the legislature has provided for the transfer of territory between school districts. If territory is transferred from a school district located in one intermediate school district to a school district located in a different intermediate school district, the territory becomes part of the intermediate school district in which the school district receiving the property is constituent since the boundaries of intermediate school districts are determined by the boundaries of their constituent school districts. The School Code of 1976, supra, Sec. 626. Turning to your first question, the School Code of 1976, supra, Sec. 961(1), provides as follows: '(1) If territory is detached from a school district which has bonded indebtedness and transferred to another school district, the territory shall remain as part of the district from which detached for the purpose of levying debt retirement taxes for the bonded indebtedness until the bonds are redeemed or sufficient funds are available in the debt retirement fund for that purpose. . . .' Thus, the legislature has plainly provided that the transferred territory remains part of the school district from which it is transferred for the purpose of levying debt retirement taxes for bonded indebtedness. (a1) Clearly, the same result obtains for the involved intermediate school districts, thereby obviating any question as to impairment of the contractual obligations owed the intermediate school districts bondholders. Therefore, it is my opinion that if territory is transferred from one school district to another school district constituent to a different intermediate school district, the transferred territory remains a part of the intermediate school district of which it was formerly constituent for the purpose of levying debt retirement taxes for bonded indebtedness. Addressing your second question, the School Code of 1976, supra, Sec. 966, provides as follows: 'If territory is attached to a school district effective before September 1 of a year, school operational millage for that year shall be levied on property in the territory by the attaching school district. If territory is attached to a school district effective on or after September 1 of a year, school operational millage for that year shall be levied on property in the territory by the school district from which the territory is detached. . . .' Thus the legislature has clearly provided that the question of which school district levies school operational millage depends upon whether the transfer was effective before or after September 1. Clearly, the same rule applies to intermediate school districts which must certify their tax levies to city and township clerks by September 1. School Code of 1976, supra, Sec. 624(3). Therefore, it is my opinion that if property is transferred from one school district to another school district constituent to a different intermediate school district effective before September 1, the intermediate school district receiving the territory shall levy the school operational millage for that year. If the transfer is effective on or after September 1, the school operational millage for that year shall be levied by the intermediate school district from which the territory is detached. Frank J. Kelley Attorney General (a1)