Source: https://www.ag.state.mi.us/opinion/datafiles/1980s/op06344.htm
Timestamp: 2020-04-04 15:21:57
Document Index: 408344179

Matched Legal Cases: ['art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9']

Opinion #6344
Opinion No. 6344
Constitutional limit on use of designated general sales taxes for comprehensive transportation purposes
Const 1963, art 9, Sec. 9-25 percent limit on appropriation of designated general sales taxes for comprehensive transportation purposes
Const 1963, art 9, Sec. 9 imposes a 25 percent limit on the amount of designated general sales taxes which may be used for comprehensive transportation purposes. Subject to that limit, all or any portion of the said taxes may be appropriated for any lawful purpose, whether transportation or otherwise.
You have directed my attention to the third paragraph of Const 1963, art 9, Sec. 9 which provides, in pertinent part:
'[N]ot more than 25 percent of the general sales taxes, imposed directly or indirectly on fuels sold to propel motor vehicles upon highways, on the sale of motor vehicles, and on the sale of the parts and accessories of motor vehicles, after the payment of necessary collection expenses; shall be used exclusively for the transportation purposes of comprehensive transportation purposes as defined by law.' (Emphasis added.)
'When the electorate adopted this amendment to the Constitution in 1978, was the 25% earmarked solely for comprehensive transportation purposes or could any part of this 25% be used for other than transportation purposes?'
In Traverse City School Dist v Attorney General, 384 Mich 390, 405; 185 NW2d 9 (1971), the court set forth the primary rule of constitutional construction as follows:
For purposes of analysis, the third paragraph of Const 1963, art 9, Sec. 9 may be condensed to state:
'[N]ot more than 25 percent of the general sales tax [imposed on designated items] . . . shall be used exclusively for the transportation purposes of comprehensive transportation purposes as defined by law.' (Emphasis added.)
It is apparent from the common, ordinary meaning of that underlined language that the Constitution does not earmark any funds for comprehensive transportation purposes. Rather, a 25 percent limitation was imposed on the maximum amount of the designated tax which may be expended for comprehensive transportation purposes. Thus, the Legislature is free to appropriate any portion of the designated tax revenues, up to 25 percent, for comprehensive transportation purposes.
It is to be noted that the first paragraph of Const 1963, art 9, Sec. 9 earmarks designated taxes to be used exclusively for transportation purposes, specifically excluding general sales taxes:
'All specific taxes, except general sales and use taxes and regulatory fees, imposed directly or indirectly on fuels sold or used to propel motor vehicles upon highways and to propel aircraft and on registered motor vehicles and aircraft shall, after the payment of necessary collection expenses, be used exclusively for transportation purposes as set forth in this section.' (Emphasis added.)
Since these general sales taxes are not constitutionally earmarked for transportation purposes, the Legislature is free to appropriate the funds thereby raised for any lawful purpose, whether transportation or otherwise, subject to the above described 25 percent limit for comprehensive transportation purposes.
It is my opinion, therefore, that the third paragraph of Const 1963, art 9, Sec. 9 limits appropriations for comprehensive transportation purposes. It is my further opinion that not more than 25 percent of the general sales taxes, imposed directly or indirectly on fuels sold to propel motor vehicles upon highways, on the sale of motor vehicles, and on the sale of the parts and accessories of motor vehicles, after the payment of necessary collection expenses, may be appropriated exclusively for comprehensive transportation purposes as defined by law. It is also my opinion that the Constitution does not earmark 25 percent of the said general sales tax revenue for comprehensive transportation purposes.