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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. 6433 April 20, 1987 LIBRARIES: District--authority of board to determine terms of tax levy for vote of electors The board of trustees of a district library is empowered to determine the amount of millage and the number of years to be effective, but not to exceed twenty years, for operation of the district library to be voted upon by the electors of the district library. Honorable Joe Conroy State Senator The Capitol Lansing, MI 48909 On behalf of the Genesee District Library, you have requested my opinion with respect to two questions concerning the renewal of operating millage for a district library. Your first question is: "Who shall establish the terms (amount of millage and number of years to be effective) of the ballot to be submitted to the electors of the district established by the participating municipalities under Sec. 2 of 1955 PA 164 [MCL 397.272; MSA 15.1780(2) ], when the tax levy is submitted by the Board of Trustees of the District Library?" MCL 397.271; MSA 15.1780(1), provides that any municipality empowered by law to establish or maintain libraries or library services may cooperatively develop a plan and united with any other municipality or municipalities for the establishment and operation of a district library. The formation of a district library requires favorable approval of the governing body of each participating municipality. MCL 397.272(1); MSA 15.1780(2)(1). If the governing body of a municipality submits the proposal for the establishment and operation of the district library to a vote of the people, the approval of a majority of those voting on the question is required. MCL 397.272(2); MSA 15.1780(2)(2). Among the statutory powers of the board of trustees of each district library is the power to maintain and operate a public library for the district. MCL 397.274(a); MSA 15.1780(4)(a). The authority for a district-wide tax levy to be approved by the electors of a district where the establishment of the district library was approved by vote of the electors of the participating municipalities is found in MCL 397.275; MSA 15.1780(5), which provides, in pertinent part: "The sums necessary for the ... operation of a district library shall be appropriated by the governing or legislative boards of the municipalities entering into the formation of the district library, or by a tax levy for this purpose authorized by a vote of the qualified electors in a participating municipality or a vote of the qualified electors of the district established by the participating municipalities pursuant to section 2(2) of this act, if the proposed tax levy is submitted by the board of trustees of the district library." (Emphasis added.) MCL 397.275; MSA 15.1780(5), authorizes three sources of funds for the operation of a district library. Those sources are: (1) appropriation by the governing boards of the participating municipalities, (2) a tax levy approved by the electors in a participating municipality (a "single-unit levy"), or (3) a tax levy approved by the electors of a library district which was originally established by vote of the electors pursuant to MCL 397.272(2); MSA 15.1780(2)(2), if the proposed tax levy is submitted by the board of trustees of the district library (a "district-wide levy"). For the single-unit levy in support of a district library, the procedure for establishment of the terms of the proposed tax levy is not expressly stated in the statute. In most cases, the governing body of the municipality would be responsible for establishing the terms of the proposed levy, although those terms might be established pursuant to a referendum or initiative if available under the municipal charter or other controlling law. For a district-wide levy, MCL 397.275; MSA 15.1780(5), assigns the establishment of the terms of the proposed tax levy to the district library board. There is no express or implied requirement that the district library submit a proposed levy to the governing boards of the participating municipalities for their review, but rather, that the proposed tax levy be submitted to the voters for their approval. In answer to your first question concerning district-wide consideration of a tax levy proposal, it is my opinion that pursuant to MCL 397.275; MSA 15.1780(5), the board of trustees of a district library established pursuant to MCL 397.272(2); MSA 15.1780(2)(2), is responsible for establishing the terms (amount of millage and number of years to be effective) of a proposed tax levy for the operation of the district library and that the board of trustees is required to submit the proposed tax levy to a vote of the qualified electors of the district. Alternatively, a single municipality, either through its governing body or other available process such as initiative, may establish the terms of a proposed tax levy within that municipality in support of a district library. Your second question is: "What is the lawful maximum number of years that the funding ballot of a District Library (1955 PA 164, as amended [MCL 397.271 et seq; MSA 15.1780(1) et seq] may be effective?" A district library is subject to the 15-18-50 mill/20-year limitation provided for in Const 1963, art 9, Sec. 6 which states: "Except as otherwise provided in this constitution, the total amount of general ad valorem taxes imposed upon real and tangible personal property for all purposes in any one year shall not exceed 15 mills on each dollar of the assessed valuation of property as finally equalized. Under procedures provided by law, which shall guarantee the right of initiative, separate tax limitations for any county and for the townships and for school districts therein, the aggregate of which shall not exceed 18 mills on each dollar of such valuation, may be adopted and thereafter altered by the vote of a majority of the qualified electors of such county voting thereon, in lieu of the limitation hereinbefore established. These limitations may be increased to an aggregate of not to exceed 50 mills on each dollar of valuation, for a period of not to exceed 20 years at any one time, if approved by a majority of the electors ... voting on the question. "The foregoing limitations shall not apply to taxes imposed for the payment of principal and interest on bonds approved by the electors or other evidences of indebtedness approved by the electors or for the payment of assessments or contract obligations in anticipation of which bonds are issued approved by the electors, which taxes may be imposed without limitation as to rate or amount; or, subject to the provisions of Section 25 through 34 of this article, to taxes imposed for any other purpose by any city, village, charter county, charter township, charter authority or other authority, the tax limitations of which are provided by charter or by general law." (Emphasis added.) It should be noted that MCL 397.274a; MSA 15.1780(4a), provides: "The municipalities which unite for the establishment and operation of a district library pursuant to section 2(2) of this act shall constitute an authority under section 6 of article 9 the state constitution of 1963." However, OAG, 1979-1980, No 5506, p 199, 200 (June 12, 1979), concluded that a district library is subject to the ad valorem tax limitations of Const 1963, art 9, Sec. 6, for the reason, inter alia, that no provision of the district library act nor any "general law" of the state establishes tax limitations of a district library and that no tax limitation was provided by charter within the meaning of Const 1963, art 9, Sec. 6. The opinion went on to state: "[T]he nonapplication provision of the second paragraph of Const 1963, art 9, Sec. 6, supra, does not apply and any tax that a district library board may seek to levy must fall within the taxing limitations of the participating municipality or district library area unless the electors therein vote to increase existing millage pursuant to the first paragraph of Const 1963, art 9, Sec. 6, and art 9, Sec. 31." The antecedents of Const 1963, art 9, Sec. 6 were originally adopted as an amendment to the 1908 Constitution in 1932 as art 10, Sec. 21. The Legislature implemented the requirements of Const 1963, art 9, Sec. 6, and its predecessor Const 1908, art 10, Sec. 21, in the Property Tax Limitation Act, MCL 211.201 et seq; MSA 7.61 et seq. In that Act, a local unit is defined to include "all other ... districts ... which may now or hereafter be established by law and which have the power to levy taxes against property located within their respective areas." MCL 211.202a; MSA 7.62(a). In order for a local unit to increase the total tax rate limitation as provided for in Const 1963, art 9, Sec. 6, a vote of the electorate, in this case, of the library district is required by MCL 211.203(3); MSA 7.63(3), which provides, in pertinent part: "If any local unit shall hold an election for the purpose of increasing the total tax rate limitation, as provided for by section 6 of article 9 of the state constitution of 1963, the vote at the election shall be taken by ballot and the ballots shall be cast and counted in the manner provided by the general election laws of this state. The ballots shall state the amount in dollars per thousand dollars of state equalized valuation by which it is proposed that the total tax rate limitation on property in the local unit be increased and the number of years for which it is proposed that the increase shall be effective. Where a previous increase in the total tax limitation on property is about to expire and a new increase for the identical amount is proposed, the ballot proposal may be presented as a renewal or continuation of the previous increase for a specified number of years. The ballot shall specify the intended purpose of the renewed or new funds. The ballot may also state the purpose for which the funds derived from the voted increase over the constitutional tax rate limitation may be used, and such funds shall not be considered by the county allocation board in dividing the net limitation tax rate among the various governmental units entitled thereto under this act." (Emphasis added.) When the foregoing provisions concerning the requirement that a ballot proposal state the number of years for which it is proposed that a tax increase be effective are read in light of Const 1963, art 9, Sec. 6, it is readily apparent that twenty years is the maximum authorized length for an elector-approved tax levy in support of the operation of a district library which exceeds the 15 mill/18 mill-limit of Const 1963, art 9, Sec. 6. An example of a twenty-year ballot proposition for increased millage in support of a district library is set forth in OAG, 1981-1982, No 6037, p 556 (February 2, 1982). In answer to your second question, it is my opinion that the maximum number of years for which voter approval of an operating tax levy for a district library may be sought consistent with the limitations set forth in Const 1963, art 9, Sec. 6, and the Property Tax Limitation Act, MCL 211.203(3); MSA 7.63(3), is twenty years. Frank J. Kelley Attorney General
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