Which tax was raised from 4% to 6% as part of Proposal A?

Prepare for the Michigan Property Tax Administration Exam. Get ready with flashcards and multiple choice questions that include hints and explanations. Ace your exam with confidence!

Proposal A, which was enacted in Michigan in 1994, aimed to address issues related to property tax revenue and school funding. One of the significant changes made under Proposal A was the increase in the state sales tax rate from 4% to 6%. This increase helped to provide additional funding for public schools while simultaneously limiting the growth of property taxes.

The adjustment in sales tax was designed to alleviate the burden on property owners and to create a more stable funding mechanism for education. By linking school funding to sales tax revenues rather than property values, Proposal A intended to improve equity and reduce disparities in funding levels between communities.

The other options, such as property tax, income tax, and excise tax, did not see the same rate adjustments under Proposal A, making this increase in the sales tax rate a notable feature of the legislation.

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