STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6224

May 2, 1984

LIBRARIES:

Detroit Library Commission--scheduling of election to increase tax rate limitation for library purposes

TAXATION:

Limitation on tax rate--election to increase tax limitation for Detroit Library Commission purposes

In order for the tax levy on property within the City of Detroit to be increased, based upon its budget, for library purposes from the current level of .64 mills, the Detroit Library Commission must schedule a tax rate limitation increase election as provided in 1933 PA 62 and the qualified electors voting on the question must approve the tax rate limitation increase proposal.

Electors residing within the City of Detroit may vote on the question of increasing the tax rate limitation for library purposes at an election to be scheduled, noticed and conducted in accordance with applicable provisions of 1933 PA 62 and 1954 PA 116.

Honorable Morris Hood, Jr.

State Representative

Capitol Building

Lansing, Michigan

You have asked for my opinion with respect to three questions involving the Detroit Library Commission, the first of which is:

The Detroit Library Commission (commission), as a body corporate, was established as a separate municipal corporation to administer the Detroit Public Library. 1901 LA 359, as amended by 1903 LA 390 and 1905 LA 460. See, Attorney General v Thompson, 168 Mich 511, 518-526; 134 NW 722 (1912), which held that the library bonds of the City of Detroit were not subject to the city's overall debt limits; Detroit Common Council v Engel, 202 Mich 544; 168 NW 465 (1918), which approved city bonds to complete the main library building; OAG, 1937-1938, p 436 (February 21, 1938), which held that the library employees were not subject to the state's civil service act; and OAG, 1947-1948, No 0-5039, P 52 (September 13, 1946), which noted that the commission was a public corporation, separate and distinct from the City of Detroit.

Under 1901 LA 359, as amended by 1903 LA 390, the membership of the commission is appointed by the Detroit Board of Education. Provisions in 1901 LA 359, Sec. 3, as amended by 1905 LA 460, for the financial support of the commission's activities, are as follows:

Thus, 1901 LA 359, Sec. 3, as amended, authorizes a special library tax of not less than one-fifth of a mill to be levied upon property assessed for city purposes, taking into account certain other sources of support.

1921 1st Ex Sess PA 26, as amended; MCLA 397.401 et seq; MSA 15.1761 et seq, was enacted to regulate library commissions in cities having a population of more than 250,000. That act provided for submission of the budget of the library commission for review by city officials. 1921 1st Ex Sess PA 26, supra, Sec. 2. In addition, it specified that the boundaries of the territory of a library commission are to be at all times co-extensive with the city's boundaries. 1921 1st Ex Sess PA 26, supra, Sec. 1.

In 1921 1st Ex Sess PA 26, supra, Sec. 4, the Legislature has specified that the relations of city officials with the library commission shall be subject to any applicable local act as it may be revised or amended. This provision must, therefore, be read in conjunction with 1901 LA 359, as amended.

An informative summary of the history of the Detroit Public Library, including its financing, is found in Frank B. Woodford, Parnassus on Main Street (Wayne State University Press, 1965), pp 129, 168, 379-383.

Following the adoption of the so-called 15-mill property tax limitation amendment in 1932, Const 1908, art 10, Sec. 21, as revised by Const 1963, art 9, Sec. 6, the tax levy in support of the commission as a non-charter local unit has been subject to the 15-mill limit implemented by the Property Tax Limitation Act, 1933 PA 62, as amended; MCLA 211.201 et seq; MSA 7.61 et seq. In your letter you state that the Wayne County Tax Allocation Board has been allocating .64 mills to the commission. Such allocation is consistent with 1933 PA 62, supra, Sec. 11(d), which provides, in pertinent part:

It is to be noted that 1933 PA 62, supra, Sec. 3(3), provides:

1933 PA 62, Sec. 3(3), supra, authorizes an election to be held to increase the tax rate limitation and specifies that it be held in accordance with the general election laws of the state.

The term 'local unit' is defined by 1933 PA 62, supra, Sec. 2(a), as follows:

The Detroit Library Commission is an organization of government established by law and is, therefore, a local unit under the Act.

As a local unit, the Detroit Library Commission may seek within the 15 mill limitation additional allocation, based upon its budget, from the Wayne County Allocation Board. 1933 PA 62, supra, Sec. 11(e). The right to any additional levy over .64 mills depends upon a favorable election to increase the tax rate limitation.

In answer to your first question, it is my opinion that in order for the tax levy on property within the City of Detroit to be increased, based upon its budget, for library purposes from the current level of .64 mills, the Detroit Library Commission must schedule a tax rate limitation increase election as provided in 1933 PA 62 and the qualified electors voting on the question must approve the tax rate limitation increase proposal.

Your second question is:

As specified in 1921 1st Ex Sess PA 26, Sec. 1, supra, the territorial boundaries of the Detroit Library Commission, as a separate municipal corporation, 1901 LA 359, Sec. 1, as amended, are co-extensive with the territorial boundaries of the City of Detroit. Taxes in support of the library are levied upon property assessed for City of Detroit purposes. 1901 LA 359, Sec. 3, as amended.

The election upon the ballot question to increase the tax rate limitation for library purposes is to be conducted within the territorial boundaries of the Detroit Library Commission which are co-extensive with the City of Detroit territorial boundaries. It follows that only the registered electors of the City of Detroit are qualified to vote in such an election. 1933 PA 62, Sec. 3(3), supra, and 1954 PA 116, Sec. 635 et seq; MCLA 168.635 et seq; MSA 6.1635 et seq.

In answer to your second question, the election on an increase in the millage for the commission would be limited to the electors residing within the territorial boundaries of the City of Detroit.

Your last question is:

1933 PA 62, Sec. 3(3), supra, provides that the ballots shall be cast and counted in the manner provided by the general election laws of this state. Those laws are found in the Michigan Election Law, 1954 PA 116, as amended; MCLA 168.1 et seq; MSA 6.1001 et seq. Under the Michigan Election Law, supra, Sec. 646a(2), the ballot question would be certified by the commission to the city clerk, and under the Michigan Election Law, supra, Sec. 653a, notice of the election would be published by the city clerk.

In answer to your third question, it is my opinion that the provisions of 1933 PA 62, Sec. 3(3), supra, and 1954 PA 116, supra, are to be observed in placing the tax rate limitation increase for library purposes proposal on the ballot for consideration by the voters of the City of Detroit.

Frank J. Kelley