Operating Millage Renewal Proposal on Non‐HomesteadProperties
FrequentlyAsked Questions:
Who pays the operating millage?
The operating millage is levied on properties that do not qualify for the homestead exemption. This represents industrial, commercial, and some agricultural properties and second homes. Primary residences qualify for the homestead exemption and, therefore, do not pay this 18 mill tax.
Ithoughtschoolsnolongerreceivedfunding throughproperty taxes,sowhyisthere amillagerenewal?
Fundingforschooldistrictschangedsignificantlyin1993/1994whenProposalAwaspassedbytheMichigan voters. UnderProposalA,theStatepaysthemajorityofthecost,buttoreceivefullfunding, schools mustlevy18millslocallyonnon‐homesteadpropertyintheirdistrict.
Isthisanew tax?
No.Thismillagehasbeeninplacesince1994.TheDistrictwasgivenvoterapprovaltolevy18 millsonnon‐homesteadpropertyinJune 1994. Thecurrentmillageexpires withthe2013taxlevy. TheDistrictis requestinga20-yearrenewal.
Willmyresidentialschooltaxesincreasetoo?
No. Thistaxisonnon‐homesteadproperty anddoesnotapplytoyourprimaryplaceofresidence.
Whathappensif themillagedoesn’tpass?
Therevenuegeneratedfromthe18millsonnon‐homesteadpropertytotalsapproximately$1million, or 13%,annually. Failuretorenewthe operating millagewouldchangeourstateschoolaidfoundationamountfromthecurrent$6,966perstudenttoamuchlower$5726.16 perstudent. TheState will not replace the lost funding and the District will be forcedto reduce or eliminateinstructionalandsupport programsforourstudentstooffsetthereductionofrevenue.
HowareMichiganschooldistrictsfunded?
Districtsreceivemostoftheirfundingonaper-pupilbasis. Theamountthataschooldistrictreceivesper-pupiliscalledtheFoundationAllowance. Theper‐pupilFoundationAllowancevariesbydistrictandtheamountfortheRudyard Area Schools is$6,966, the state minimum. Thisrepresentsabout72% ofdistrictrevenue andisfundedfromtwosources: 1)localrevenue - 18millscollectedon non‐homesteadpropertyand 2)staterevenue.Theother28%representslocal,county,and federalrevenue.
CosttotheHomeowner:$0
Thisoperating millagerenewalwillallowthe districttolevy18millsonnon‐homestead property.Ifapproved,homeownerswillnotsee an increase in theirpropertytaxes.In other words,thismillage renewal will not change the taxes onyour primary house in whichyoulive.Thisisnotanewtax. Itisa proposal to continue the existing18mill assessmentonnon‐homesteadproperties.
More Information
To have specificquestions answered or to obtainmore information, please contact:
Anthony Habra (906) 478-3771
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