2022 NON-HOMESTEAD MILLAGE RENEWAL
AUGUST 2, 2022 BALLOT PROPOSAL
On August 2, 2022, Northwest Community Schools will seek an Operating Millage Renewal of 21.8938 mills. The ballot proposal, if approved, allows the school district to continue to levy 18 mills on most commercial, business, rental properties, vacant land, and second-home properties. This non-homestead millage renewal does not affect property taxes for primary home residences.
- Election Day: August 2, 2022 from 7am-8pm.
- This proposal does not impact the taxes on residential or most agricultural property.
- This is a renewal of the current millages that voters approved in 2016.
- This renewal is for a period of ten years.
- This is a renewal on non-homestead property only.
- This is not a new tax, only a renewal to hold funding at current levels. In order for the District to receive its full per pupil foundation allowance from the state, the District must levy 18 mills on non-homestead properties.
- This money is used for district operations.
- This money cannot be replaced by other sources.
- Even though primary households are not affected, state law requires a district-wide election to approve this millage.
- Due to the Headlee Amendment rollback, Northwest Community Schools is at risk of losing the full 18 mills that non-homestead property owners pay for schools.
- Under state law, Northwest Community Schools may only levy 18 mills for general operating purposes.
- The extra 3.8938 mills on the ballot, while restricting the District to levy no more than 18 mills by law, guards against future Headlee rollbacks.
A SOURCE OF SCHOOL FUNDING
The following presentation was delivered to the Northwest Community Schools Board of Education and community members on February 28, 2022 during a public meeting. For 2021-2022 meeting minutes and meeting dates, please visit our Board of Education page on the district’s website.
Northwest Community Schools – Operating Millage Renewal Proposal
This proposal will allow the school district to continue to levy the statutory rate of not to exceed 18 mills on all property, except principal residence and other property exempted by law, required for the school district to receive its revenue per pupil foundation allowance. The remaining 3.8938 mills are only available to be levied to restore millage lost as a result of the reduction required by the “Headlee” amendment to the Michigan Constitution of 1963 and will only be levied to the extent necessary to restore that reduction.
Shall the currently authorized millage rate limitation on the amount of taxes which may be assessed against all property, except principal residence and other property exempted by law, in Northwest Community Schools, Jackson and Ingham Counties, Michigan, be renewed by 21.8938 mills ($21.8938 on each $1,000 of taxable valuation) for a period of 10 years, 2023 to 2032, inclusive, to provide funds for operating purposes; the estimate of the revenue the school district will collect if the millage is approved and 18 mills are levied in 2023 is approximately $4,300,000 (this is a renewal of millage that will expire with the 2022 tax levy)?
REGISTER TO VOTE
Learn more about registering to vote, or see if you're already registered, at the Secretary of State's Register to Vote website.
- Monday, July 18, 2022: Last day to register in any manner other than in-person with the local clerk.
- July 19, 2022 – August 2, 2022 at 8pm: In-person registration with the local clerk with proof of residency.
ABSENTEE VOTER BALLOTS
Learn more about absentee voting on the Secretary of State's Absentee Voting website
FREQUENTLY ASKED QUESTIONS
WHAT IS A NON-HOMESTEAD MILLAGE?
Non-homestead property includes all taxable property within the District with the exception of a family’s primary residence, most agricultural, certain forestry property, and certain industrial and commercial personal property. Non-homestead property includes industrial, commercial and some agricultural real estate and ‘second homes.’ A non-homestead millage refers to the rate at which non-homestead properties are taxed.
WILL MY TAX RATES INCREASE IF THIS PROPOSAL IS PASSED?
There is no tax increase to homeowners. This millage proposal is only for non-homestead properties, like commercial, business, rental properties, vacant land, and second-home property owners. The ballot measure is to renew the 18 mills that are levied on non-homestead properties.
The standard formula for determining millage rates as actual dollars is: One mill equals $1 of tax per $1,000 of the taxable value of a property.
WHY DO DISTRICTS LEVY 18 MILLS FROM NON-HOMESTEAD PROPERTIES?
Each district in the State of Michigan uses the per pupil funding allotment to plan its annual budget. The state determines the per- pupil amounts during their annual budget process.
In determining the state aid funding, the state assumes each district is collecting 18 mills from its non-homestead properties. The state then backs out the non-homestead property taxes (the full 18 mills) before sending the district its monthly payments. With the full 18 Mills, Northwest Community Schools' per pupil allowance for 2021-2022 is $8,700. Without the full 18 mills, the District cannot collect the full amount per each pupil (student).
Northwest Community Schools has been collecting 18 mills as the non-homestead operating millage since Proposal A passed in 1994. The 2022 Operating Millage Renewal, if passed, allows the District to renew the full 18 mills through 2032 and claim the full per-pupil allotment.
DIDN’T WE PASS A BOND IN 2013? IS THIS THE SAME THING?
This non-homestead millage renewal ballot proposal is unrelated to the district’s 2013 bond proposal for the completion of safety and building projects across our district.
HOW WILL THE NON-HOMESTEAD MILLAGE FUNDS BE USED?
The funds from the non-homestead Headlee restoration millage go directly into the District's general fund, which supports day-to-day operations, like programs, curriculum materials, facilities, and employee salaries.
WHAT HAPPENS IF THE NON-HOMESTEAD MILLAGE IS NOT APPROVED?
If the District were unable to collect the full 18 Mills allowed under Proposal A, the district's operating revenues would decline reducing the District's ability to fund day-to-day operations.
Paid for by Northwest Community Schools, 6900 Rives Junction Rd., Jackson, MI 49201