MI SB0290

School districts may levy up to 5 mills on taxable value of real and personal property, approved by school electors, for a sinking fund lasting not more than 20 years.

Sinking fund purposes expanded to include purchase or major maintenance of school buses, acquisition or upgrading of technology, and remodeling or equipping school buildings for school safety and security pursuant to a local school security policy.

School districts levying a sinking fund tax must undergo annual independent audits submitted to the Department of Treasury, with review of fund uses.

If the Department of Treasury determines sinking fund was misused, the school district must repay misused funds from operating funds and is prohibited from levying further sinking fund taxes.

Sinking fund tax remains subject to the 15 mill tax limitation provisions of the state constitution and the 1933 Property Tax Limitation Act.