Non-Homestead Millage

2020 Holly Area Schools 
Non-homestead millage operating proposal 

On November 3, 2020, the Broncho community will be asked to consider voting on the non-homestead millage for Holly Area Schools. The continuation of the millage on non-homestead properties and businesses accounts for about $4.3 million, or about 11% of the school district’s total general fund. The proposal is a “renewal plus.” It renews the current 17.9047 non-homestead millage, and increases it by .5 mills so that the district can levy the 18 mills on non-homestead properties to receive full state funding.  

IMPORTANT FACTS

  • Election Day: November 3, 2020 from 7am-8pm.
  • This proposal does not impact the taxes on residential or agricultural property.
  • This is a renewal of the current 18 mills that voters approved in 2012.
  • This is for a period of twelve years on non-homestead property only.
  • This is not a new tax, only 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.
  • Every dollar spent in this fiscally responsible proposal will be tracked to ensure transparency and accountability.  
  • Even though primary households are not affected, state law requires a district-wide election to approve this millage.
  • Due to the Headlee Amendment rollback, Holly Area Schools is at risk of losing the full 18 mills that non-homestead property owners expect to pay for schools.
  • An increase of .5 mills on the ballot, while restricting the District to levy no more than 18 mills by law, is necessary to restore and maintain the 18 mills and guard against future Headlee rollbacks.

FREQUENTLY ASKED QUESTIONS

WHAT IS MEANT BY HOMESTEAD AND NON-HOMESTEAD PROPERTIES?

When Michigan voters passed Proposal A in 1993, Michigan’s property taxes for schools were restructured and reduced. Property was divided into two categories: homestead and non-homestead. A homestead property is your primary residence (the home where you live). Non-homestead properties include land and buildings such as businesses, rental properties and vacation homes that have not been designated as a primary residence.

IS THIS A NEW TAX?

No. This millage has been in place since 1994 with the passage of Proposal A. Holly voters last approved a levy for 18 mills on non-homestead property 8 years ago. The current millage expires with the 2022 tax levy.

WHY IS THIS ISSUE ON THE BALLOT NOW?

Under Proposal A, renewal of the 18 mills is required periodically by voters in order for the district to continue collecting this millage. Because our authorization expires in 2022, we need voter approval to continue collecting these dollars, which help maintain Holly’s educational programs.  Putting this on the current November ballot saves the district and taxpayers money for a special election.  

HOW WILL THIS AFFECT HOMEOWNERS?

This millage renewal will not change the taxes on your primary residence. It is a renewal on non-homestead properties only, such as business properties and second homes.

HOW MUCH OF OUR LOCAL SCHOOL BUDGET DOES THIS NON-HOMESTEAD MILLAGE FUND?

The current assessment of 18 mills that voters are being asked to approve is used to fund a significant part of the school district’s operating budget. Approximately 11% or about $4.3 million of the annual budget comes from the 18-mill non-homestead tax assessment.

WHAT WOULD HAPPEN IF THIS MILLAGE DOES NOT PASS?

If the request for the renewal of the 18 mills non-homestead were not approved, Holly Area Schools would lose about $4.3 million (11%) of funding for each school year. Voter approval is the only way the district can receive these dollars. Losing about  $4.3 million of the district’s operating budget would have a major impact on the educational programs offered to students and the community.  The non-homestead millage operating proposal allows the district to continue providing a safe learning environment for all students, teachers and staff; cutting-edge technology that helps prepare our students for college, technical school, and apprenticeships or jobs right after graduation. 

WHEN IS THE ELECTION?

Tuesday, November 3, 2020
Polls will be open from 7 a.m. to 8 p.m.

WHERE DO I VOTE?

Voting will take place at the regular polling locations for all elections which have been designated by your local township clerk.

WHERE CAN I GET ANSWERS?

For other questions that you have about the non-homestead millage operating proposal, please call us at: 248-328-3151


 

BALLOT LANGUAGE

Holly Area School District

Operating Millage Proposal

This proposal will allow the school district 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 full revenue per pupil foundation allowance and restores millage lost as a result of a reduction required by the “Headlee” amendment to the Michigan Constitution of 1963. 

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 Holly Area School District, Oakland County, Michigan, be renewed by 17.9047 mills ($17.9047 on each $1,000 of taxable valuation) for a period of 10 years, 2023 to 2032, inclusive, also be increased by .5 mill ($0.50 on each $1,000 of taxable valuation) for a period of 12 years, 2021 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 .0953 mill of the additional .5 mill is levied in 2021 is approximately $4,323,146 (this is a renewal of millage that will expire with the 2022 tax levy and the addition of millage to restore millage lost as a result of a reduction required by the “Headlee” amendment to the Michigan Constitution of 1963, which will only be levied to the extent necessary to restore that reduction)?