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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. 5729 June 25, 1980 CONSTITUTIONAL LAW: Const 1963, art 9, Sec. 31 TAXATION: Low grade iron ore tax as local tax The low grade iron ore tax imposed under 1951 PA 77 is a local tax and the Legislature, by amendment, may broaden the base of the tax or increase its rate to be effective upon the approval of a majority of the electors of the affected township or townships in which the tax is levied, collected and distributed. Honorable D. J. Jacobetti State Representative State Capitol Lansing, MI 48909 You have requested my opinion on the following questions: 1. Is the specific low grade iron ore tax imposed under 1951 PA 77 a local or state tax? 2. If it is a local tax, may the Legislature increase the rate of the tax without a vote of the electors in the local unit? 1951 PA 77, as amended; MCLA 211.621 et seq; MSA 13.157(1) et seq, authorizes a low grade iron ore specific tax. Under 1951 PA 77, supra, Sec. 4, the township supervisor removes certain lands containing low grade iron ore from the assessment rolls for levy of ad valorem property taxes, places them on a separate roll, spreads a specific tax upon the lands entered on the separate roll and the township treasurer collects the tax. Sums collected are distributed by the township treasurer to school districts and governmental units in the same proportion as the general property taxes are distributed. In Youngblood v Sexton, 32 Mich 406 (1875), the Michigan Supreme Court held that a tax levied pursuant to general law, assessed and collected locally and distributed to units of local government for local purposes is regarded as a local tax. It is my opinion, therefore, that the low grade iron ore specific tax levied and collected pursuant to 1951 PA 77, Sec. 4, supra, is a local tax. Turning to your second question, the 'Headlee Amendment' to the Michigan Constitution, adopted on November 7, 1978, amended Const 1963, art 9, Sec. 6, and added sections 25 through 34 to Const 1963, art 9. Const 1963, art 9, Sec. 31, in pertinent part, states: 'Units of local government are hereby prohibited from levying any tax not authorized by law or charter when this section is ratified or from increasing the rate of an existing tax above that rate authorized by law or charter when this section is ratified, without the approval of majority of the qualified electors of that unit of local government voting thereon. If the definition of the base of an existing tax is broadened, the maximum authorized rate of taxation on the new base in each unit of local government shall be reduced to yield the same estimated gross revenue as on the prior base . . .' As the specific tax imposed by 1951 PA 77, supra, is a local tax, it is my opinion that the Legislature may broaden the definition of the base of the tax or increase the rate of the tax subject to the approval of a majority of the electors of the affected township or townships in which the tax is levied, collected and distributed. (1) Frank J. Kelley Attorney General (1)
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