Adopted 1963, Revised 1971 and 1980, Section VI added 1995

LWVMI supports the development of a state-local tax structure which is adequate, equitable, flexible and moderately progressive. I. All three broad-based taxes on income, sales and property should be relied upon, with more reliance on the income tax.
A. Both local and state property taxes should be levied, based on statewide use of scientific and uniform assessment methods and administrative procedures. Property exemptions should be reappraised periodically.
B. Food and drugs should be exempt from the state sales tax.
C. The state income tax should be graduated as to rate.
D. Other ways to obtain additional revenues should be used, such as nuisance taxes and user fees.
E. Endorse the concept of tax base sharing, a system for sharing the property tax base that is subject to taxation among units of government.

II. The Legislature should have broad and fundamental taxing powers, free of constitutional restrictions except for constitutional provisions requiring a balanced budget and property tax millage limits.

III. The Legislature should exercise its authority to delegate to local units of government a variety of alternatives to the property tax to enable the local units to meet responsibilities delegated to them. However, the present taxing power of local school districts should not be broadened.

IV. State-collected revenues which are returned to local units should be distributed on the basis of need, minimum level of local support, and cost of needed services.

V. Budgeting
A. The budget process for Michigan should include a budget review committee in the Legislature and the establishment of a legislative budget staff similar to the federal Congressional Budget Staff.
B. State, as well as local government budgeting should involve: 1. Periodic evaluation of the executive departments; 2. Use of zero-base budgeting and sunset concepts; 3. Greater public input.
C. The State should establish uniform local government budgeting.