Mich. Const. art. IX, § 26

Limitationontaxes;revenuelimit;refundingortransferringexcessrevenues; exceptionstorevenuelimitation;adjustmentofstaterevenueandspendinglimits. Sec. 26. There is hereby established a limit on the total amount of taxes which may be imposedbythelegislatureinanyfiscalyearonthetaxpayersofthisstate.Thislimitshallnot be changed without approval of the majority of the qualified electors voting thereon, as providedforinArticle12oftheConstitution.Effectivewithfiscalyear1979-1980,andforeach fiscal year thereafter, the legislature shall not impose taxes of any kind which, together with allotherrevenuesofthestate,federalaidexcluded,exceedtherevenuelimitestablishedinthis section.TherevenuelimitshallbeequaltotheproductoftheratioofTotalStateRevenuesin fiscalyear1978-79dividedbythePersonalIncomeofMichiganincalendaryear1977multiplied bythePersonalIncomeofMichiganineitherthepriorcalendaryearortheaverageofPersonal IncomeofMichiganinthepreviousthreecalendaryears,whicheverisgreater. For any fiscal year in the event that Total State Revenues exceed the revenue limit establishedinthissectionby1%ormore,theexcessrevenuesshallberefundedproratabased on the liability reported on the Michigan income tax and single business tax (or its successor tax or taxes) annual returns filed following the close of such fiscal year. If the excess is less than1%,thisexcessmaybetransferredtotheStateBudgetStabilizationFund. The revenue limitation established in this section shall not apply to taxes imposed for the payment of principal and interest on bonds, approved by the voters and authorized under Section 15 of this Article, and loans to school districts authorized under Section 16 of this Article e close of such fiscal year. If the excess is less than1%,thisexcessmaybetransferredtotheStateBudgetStabilizationFund. The revenue limitation established in this section shall not apply to taxes imposed for the payment of principal and interest on bonds, approved by the voters and authorized under Section 15 of this Article, and loans to school districts authorized under Section 16 of this Article. Ifresponsibilityforfundingaprogramorprogramsistransferredfromonelevelofgovernment toanother,asaconsequenceofconstitutionalamendment,thestaterevenueandspendinglimits may be adjusted to accommodate such change, provided that the total revenue authorized for collectionbybothstateandlocalgovernmentsdoesnotexceedthatamountwhichwouldhave beenauthorizedwithoutsuchchange. History: Add.Init.,approvedNov.7,1978,Eff.Dec.23,1978.