What must the legislature provide for the taxation of real and tangible personal property?

The correct answer is that the legislature must provide for general ad valorem taxation of real and tangible personal property. General ad valorem taxation refers to a system where property taxes are based on the assessed value of the property. This approach is foundational in property tax administration because it ensures that all properties are taxed fairly based on their market value, promoting equity among taxpayers.

Under Michigan law, ad valorem taxes are applied uniformly, allowing the local government to raise revenue while providing a stable source of funding for essential services such as education, public safety, and infrastructure maintenance. This method is essential for maintaining a reliable and predictable tax base, which is necessary for effective financial planning at the local level.

While alternatives like property tax exemptions for nonprofits can play a role in the broader tax policy, they do not replace the fundamental requirement for general ad valorem taxation. Similarly, considerations for balancing property and income taxation or simply determining market value do not encapsulate the legislative obligation concerning real and tangible personal property taxation. The essence of property taxation in Michigan is rooted in the commitment to a general ad valorem system, ensuring fairness and transparency in how property taxes are levied and collected.