Introduced by the Finance Committee of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

WHEREAS, the State Tax Commission is charged with the proper administration of the laws governing assessments and the levying of taxes in this state; and

WHEREAS, Article 9, Section 3 of the Michigan Constitution mandates that the legislature provide for the uniform general ad valorem taxation of tangible personal property, provide for the determination of the true cash value of such personal property and provide the proportion of true cash value at which such property shall be uniformly assessed; and

WHEREAS, by administrative fiat, the State Tax Commission has adopted special composite multipliers that must be used in calculating the ad valorem tax assessment of gas and electrical utility transmission and distribution systems throughout the State of Michigan; and

WHEREAS, in violation of constitutional equal protection and uniformity in taxation requirements, the adopted multipliers greatly undervalue the taxable property of utility companies; and

WHEREAS, the special utility multipliers effectively grant Michigan utilities millions in tax breaks that are unavailable to any other Michigan citizens or businesses; and

WHEREAS, the special utility tax breaks reduce by over one hundred million dollars the local revenues necessary to support essential services provided by schools, community colleges, parks, public safety and other units of local government; and

WHEREAS, the special utility tax breaks unfairly shift significant tax burdens from utilities to other Michigan businesses and citizens, forcing either increases in local taxes and/or severe reductions in educational, recreational, public safety or other local governmental services; and

WHEREAS, court intervention is necessary to stop the ill-advised and unconstitutional special utility tax break.

THEREFORE BE IT RESOLVED, that the County of Ingham hereby endorses and pledges its support of the legal challenge to the Tax Commission= s action.

BE IT FURTHER RESOLVED, the County of Ingham authorizes its counsel to join the challenge as a Party-Plaintiff.

BE IT FURTHER RESOLVED, the County of Ingham appropriates funds in the amount of $2,850 to help offset legal costs and expenses incurred in this challenge.

BE IT FURTHER RESOLVED, that the Board Chairperson and County Clerk are authorized to sign any necessary contracts subject to recommendation of the County Controller and reviewed as to form by the County Attorney.

FINANCE: Yeas: Bernero, Grebner, Czarnecki, McDonald, Schafer, Juall

Nays: None Absent: Minter Approved 2/02/00