TAXATION AND REVENUE SYSTEMS—MICHIGAN. 
115 
MICHIGAN. 1 
The constitution of Michigan, adopted in 1850, pre 
scribed the general property tax for state and local 
purposes, but also permitted the legislature to levy 
“specific” taxes upon certain classes of corporations 
for certain state purposes, mainly educational, such 
specific taxes to be in lieu of all other taxes. 
Since then a new constitution has been adopted, 
going into effect January 1, 1909. Although the 
changes made in the revenue system by the new con 
stitution are not very extensive, they materially 
strengthen the power of the legislature to impose the 
specific taxes referred to above. Authority is also 
conferred to provide for the assessment of all public 
service corporations at the true cash value of their 
property. It also makes distinct and clear provision 
for the taxation of corporations either by the specific 
or ad valorem method. 
CONSTITUTIONAL PROVISIONS. 
ARTICLE X. FINANCE AND TAXATION. 
Sec. 1. All subjects of taxation now contributing to the pri 
mary school interest fund under present laws shall continue to 
contribute to that fund, and all taxesfromsuch subjects shall be first 
applied in paying the interest upon the primary school, university, 
and other educational funds in the order herein named, after which 
the surplus of such moneys shall be added to and become a part of 
the primary school interest fund. 
Sec. 2. The legislature shall provide by law for an annual tax 
sufficient with other resources to pay the estimated expenses of the 
state government, the interest on any state debt, and such deficiency 
as may occur in the resources. 
Sec. 3. The legislature shall provide by law a uniform rule of 
taxation, except on property paying specific taxes, and taxes shall 
be levied on such property as shall be prescribed by law: Provided, 
That the legislature shall provide by law a uniform rule of taxation 
for such property as shall be assessed by a state board of assessors, 
and the rate of taxation on such property shall be the rate which the 
state board of assessors shall ascertain and determine is the average 
rate levied upon other property upon which ad valorem taxes are 
assessed for state, county, township, school, and municipal purposes. 
Sec. 4. The legislature may by law impose specific taxes, which 
shall be uniform upon the classes upon which they operate. 
Sec. 5. The legislature may provide by law for the assessment at 
its true cash value by a state board of assessors, of which the gov 
ernor shall be ex officio a member, of the property of corporations 
and the property, by whomsoever owned, operated, or conducted, 
engaged in the business of transporting passengers and freight, trans 
porting property by express, operating any union station or depot, 
transmitting messages by telephone or telegraph, loaning cars, op 
erating refrigerator cars, fast freight lines, or other car lines, and run 
ning or operating cars in any manner upon railroads, or engaged in 
any other public service business; and for the levy and collection of 
taxes thereon. 
Sec. 6. Every law which imposes, continues, or revives a tax 
shall distinctly state the tax, and the objects to which it is to be 
applied; and it shall not be sufficient to refer to any other law to fix 
such tax or object. 
1 This compilation is derived mainly from the following sources: 
Howell’s Michigan Statutes, annotated, 1913. 
Public Acts, sessions of 1907, 1909, 1911, and 1913. 
General Tax Laws, edition 1907. 
Sec. 7. All assessments hereafter authorized shall be on property 
at its cash value. 
Sec. 8. In the year 1911, every fifth year thereafter and at such 
other times as the legislature may direct, the legislature shall pro 
vide by law for an equalization of assessments by a state board, on 
all taxable property, except that taxed under laws passed pursuant 
to sections 4 and 5 of this article. 
OFFICERS. 
The officers most directly concerned with taxation 
are: 
(1) The supervisors, elected annually in each township, who 
make the initial assessments; in incorporated villages and in certain 
cities this work is done by an officer called the assessor, or by a 
board of assessors. 
(2) The board of review for each township, composed of the 
supervisor, and two taxpaying landholders elected for two years, 
one in each alternate year. In cities of the fourth class the board 
of review consists of the supervisors of the several wards, the city 
assessor if such officer is provided for, the mayor, and the city 
attorney. 
(3) The township or city treasurer, elected annually, who acts 
as tax collector. 
(4) The county board of supervisors, composed of the super 
visors of each township and city in the county, which equalizes 
the assessment between assessing districts. 
(5) The state board of equalization, consisting of the secretary of 
state, the auditor general, the commissioner of the land office, the 
state treasurer, and the chairman of the board of state tax com 
missioners. 
(6) The state board of tax commissioners, consisting of three 
members appointed by the governor for a full term of six years. 
This board, including the governor, who is a member ex officio, 
form the state board of assessors, provided for by section 5 of Article 
X of the constitution. 
State Revenues. 
A. GENERAL PROPERTY TAXES. 
1. Base— 
a. The property included and exempt.—All property, 
real and personal, within the jurisdiction of the state, 
not expressly exempted, is subject to this tax. 
(1) Real property includes all lands within the state, and all 
buildings and fixtures thereon, and appurtenances thereto. Real 
estate is assessed in the township or place where situated to the 
owner, if known, or to the occupant, if the owner is unknown, and 
either or both shall be liable for the taxes; if there be no owner or 
occupant known, then as “unknown.” Possessory claims to home 
stead lands are assessed as personal property. 
(2) Personal property includes all moneys; all annuities and 
royalties; all goods, chattels, and effects within the state; all 
ships, boats, and vessels, and their appurtenances belonging to 
inhabitants of the state, whether at home or abroad; all goods, 
chattels, and effects belonging to inhabitants of the state, situate 
without the state, except property actually and permanently 
invested in business in another state; all credits of every kind 
belonging to inhabitants of the state, over and above the amounts 
owed by them; all shares in corporations, organized under the laws 
of the state, when the property of such corporations is not exempt 
or is not taxable in itself, or when the personal property is not taxed; 
all shares in banks within the state, at their cash value, after deduct 
ing the assessed value of real property of the banks; all shares of