STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6001

October 23, 1981

HOME RULE COUNTIES:

Statutory allocation of tax rate

TAXATION:

Deducation of charter county tax rate from maximum 15 mill rates available to local governmental units

Upon approval of its charter by its electors, a charter county not receiving a separate tax limitation rate heretofore approved by the electors is statutorily allocated a tax rate in mills equal to the number of mills allocated to the county by the county tax allocation board in the year immediately preceding the year in which the county charter is adopted.

The amount of millage statutorily allocated to a charter county must be deducted from the maximum 15 mill tax rates and the resulting net limitation tax rates are available for allocation to school districts, intermediate school districts, community college districts and townships in the charter county.

Honorable Richard A. Young

State Representative

The Capitol

Lansing, Michigan

You have requested my opinion on the following questions:

Your questions relate to a county whose electors have not voted separate tax limitations in accordance with 1933 PA 62; MCLA 211.201 et seq; MSA 7.61 et seq, Sec. 5a et seq.

1966 PA 293; MCLA 45.501 et seq; MSA 5.302(1) et seq, provides for the establishment of charter counties and specifies the provisions that must be included in a county charter. In 1966 PA 293, supra, Sec. 14(m), as originally enacted, the Legislature provided:

In 1980 the Legislature amended 1966 PA 293, Sec. 14(m), supra, by means of 1980 PA 7 so that this statute now reads:

Thus, it is necessary to consider the provisions of 1933 PA 62; MCLA 211.201 et seq; MSA 7.61 et seq, which places limits on the rate of taxation of property and provides for the division of the rate of taxation among certain local governmental units.

The 1980 Michigan Legislature also amended 1933 PA 62, Sec. 4; MCLA 211.204; MSA 7.64, to read, in pertinent part:

It should be noted that subsection (3) is an entirely new subsection.

Also pertinent to your inquiry is 1933 PA 62, supra, Sec. 3(1), which provides:

Because the same Legislature amended both 1966 PA 293, Sec. 14, supra, and 1933 PA 62, Sec. 4, supra, and inasmuch as 1966 PA 293, Sec. 14, supra, contains an express reference to 1933 PA 62, supra, these statutes are in pari materia and must be construed together as part of one system. Boards of County Road Commissioners v Board of State Canvassers, 50 Mich App 89; 213 NW2d 298, aff'd, 391 Mich 666; 218 NW2d 144 (1974).

So read together, they provide for a permanent statutory allocation of millage to a charter county from the maximum 15 mill tax rates authorized by the Legislature pursuant to 1933 PA 62, Sec. 3(1), supra. The amount statutorily allocated to a charter county equals the number of mills allocated to the county by the county tax allocation board in the year immediately preceding the year in which the county charter is adopted.

It is my opinion, therefore, that pursuant to 1933 PA 62, Sec. 4, as last amended by 1980 PA 24, supra, and then read together with 1966 PA 293, Sec. 14(m), as last amended by 1980 PA 7, supra, a charter county not receiving a separate tax limitation rate heretofore approved by the electors is statutorily allocated a tax rate in mills equal to the number of mills allocated to the county by the county tax allocation board in the year immediately preceding the year in which the county charter is adopted.

Your second question asks whether the amount of the statutory millage assigned to a charter county must be deducted from the maximum 15 mill tax rates authorized by the Legislature in 1933 PA 62, Sec. 3, supra, before tax rate allocations are to be made to other local governmental units.

The intent of the Legislature is enacting 1933 PA 62, Sec. 4, as last amended by 1980 PA 24, supra, quoted above, is abundantly clear. The tax rate in mills statutorily allocated for charter county purposes must be deducted from the maximum tax rate authorized pursuant to 1933 PA 62, Sec. 3(1), supra, with 'the remainder of these maximum rates after the deduction to be known and referred to as the net limitation tax rate.'

The authority of a county tax allocation board to approve tax rates for school districts, intermediate school districts, community college districts, and townships in such charter county is exercised by dividing the 'net limitation tax rate' between all the local units as set forth in 1933 PA 62, supra, Sec. 11. Thus, the Legislature, in providing for the statutory assignment of allocated millage to a charter county based upon its allocation for the previous year, commanded that this sum be deducted from the 15 mill maximum tax rates before the net limitation tax rates are divided among school districts, intermediate school districts, community college districts and townships in such charter county.

It is my opinion, in answer to your second question, that pursuant to 1933 PA 62, Sec. 4(1), as last amended by 1980 PA 24, supra, the Legislature has provided that the amount of millage statutorily allocated to a charter county pursuant to 1933 PA 62, Sec. 4(3), supra, be deducted from the 15 mill maximum tax rates and only the net remaining tax rates are available for allocation to school districts, intermediate school districts, community college districts, and townships in the charter county.

Frank J. Kelley